Key Investment Insights
Key Insights:
1. The motel has a new 30 year leasehold, providing long-term stability for the business.
2. The property has a high yield of 34.3% under management, even after allowing for manager's wages.
3. The motel has 23 units set on 1.25 hectares with absolute river frontage, providing a unique and attractive setting for guests.
4. A new $30,000 solar system has been installed, potentially reducing operating costs and increasing profitability.
5. The motel has won awards and has a Tesla car charging station, indicating a high level of quality and appeal to guests.
6. Single tariffs range from $129 to $169, providing a range of options for guests and potentially increasing revenue.
7. The owner's residence includes 3 bedrooms and a large fenced yard for pets, providing a comfortable living space for the owners.
8. The location of the motel is close to restaurants and shops, making it convenient for guests and potentially attracting more business.
9. The motel offers amenities such as Wifi, Austel, BBQ, and a pool area, providing added value for guests.
10. There is surplus land for potential expansion, with a DA being approved for additional units, a new residence, and laundry facilities, providing potential for future growth and increased revenue.
11. The turnover for the business is $777,268, with an adjusted net profit of $324,655.
12. The rent is only 37.5% of the total profit, indicating a strong return on investment for the new owner.
ROI Estimate: 49.57%
