Atherton, Queensland
Rare Lease Hold Motel in NQ with Great Upside
$730,000
Business Description
Tranquility Awaits with this outstanding opportunity to acquire a well-presented and easy-to-run leasehold motel in the heart of the Atherton Tablelands.
•⭐ Key Investment Highlights
•🏷️Asking Price: $730k (neg)
•💰 Net Profit: Over $224k adjusted
•📈 Return on Investment: 30%
•🛏️ 17 Motel Rooms
•📅 27 Years Remaining on Lease
Positioned directly opposite Atherton Hospital and only moments from the town centre, this 17-room motel enjoys strong repeat corporate and tourist trade with consistent occupancy and excellent forward bookings.
The current owners have invested heavily into upgrading and modernising the property over recent years, creating a highly efficient and largely automated operation with minimal ongoing capital expenditure anticipated.
Key improvements include:
• Refurbishment of 5 guest rooms and 1 two-bedroom apartment
• New bathrooms, furniture and fittings
• New roof
• New CCTV system
• New commercial laundry equipment
• Full repaint of motel frontage and doors
• Numerous operational and equipment upgrades throughout
The business currently operates with a simple staffing structure consisting of casual cleaners only, with automated check-in systems significantly reducing front desk requirements.
Features include:
• Long 27-year lease tenure
• Strong occupancy averaging approximately 79%
• Average room rate approximately $155 per night (inc)
• Consistent corporate, hospital and tourism trade
• Opposite Atherton Hospital
• Easy-to-operate business model
• Manager’s residence included
• Opportunity to improve margins through increased direct bookings
• Further upside through meal service or expanded guest offerings
• Strong forward bookings exceeding $140,000
The motel was originally operated successfully by a husband-and-wife team with minimal staff involvement, providing flexibility for incoming owners to tailor operations to suit their preferred lifestyle and management style.
The current owners also heavily utilise Online Travel Agents for bookings, presenting a clear opportunity for incoming operators to improve profitability by increasing direct bookings and reducing commission costs.
Regional leasehold motels with long tenure, strong occupancy and limited competition remain tightly held and highly sought after.
Inspection strictly by appointment only.
Business Summary
Key Investment Insights
1. Asking price $730k (neg), with net profit over $224k adjusted, indicating a strong cashflow profile.
2. Reported return on investment of 30%, demonstrating attractive yield for a leasehold motel.
3. 27 years remaining on the lease, providing long-term tenure and stability for purchasers.
4. 17 motel rooms including a two‑bedroom apartment, supporting both short and extended stays.
5. Location directly opposite Atherton Hospital and moments from the town centre, driving consistent corporate and hospital-related demand.
6. Strong occupancy averaging approximately 79%, with strong forward bookings exceeding $140,000, indicating reliable demand and revenue visibility.
7. Average room rate about $155 per night (inc), supporting the stated revenue and profit metrics.
8. Recent capital works include refurbishment of 5 guest rooms and 1 apartment, new bathrooms, furniture, roof, CCTV, commercial laundry and exterior repaint, reducing near-term capital expenditure needs.
9. Largely automated operation with automated check‑in and simple staffing model of casual cleaners only, enabling low operating overheads and owner-operator flexibility.
10. Manager’s residence included, offering onsite management convenience and potential cost saving or rental income.
11. Clear upside via increased direct bookings to reduce OTA commissions, and potential margin improvement through meal service or expanded guest offerings.
12. Previously operated by a husband-and-wife team with minimal staff, demonstrating the business can be run efficiently by small ownership teams; energy rating noted as 1.
