Cairns City, Queensland
RECESSION PROOF, COVID PROOF WORKERS BACKPACKER 69 BEDS, WITH 16% RETURN ON INVESTMENT - ID 2718BF
SOLD
Business Description
Tourism Brokers are pleased to present to market the Freehold business Castaways Backpackers and Guest Lodge which is positioned with main street frontage in Regional Far North Queensland City.
It has been especially popular with visiting tourists, but since COVID, having shifted their focus to short term rentals. The business has established strong connections with inbound workers looking for short term rental up to three months, while they find longer term housing. Close to 100% occupancy, this property is a Cash Cow, with low operational costs. Operators only provide linen, and cleaning equipment to guests each week.
Projected next year to surpass $400,000 in Gross Rental, 28 room Hostel on 1,012 sqm, licensed for 69 beds, the Hostel / Guest House works out around $110 per bed per week, which is excellent living for new workers coming to the city.
Currently two cleaners occupy two beds, and work for their rooms, and they are joined by one Resident Caretaker who oversees the operation. All Rents and Fees are direct debit, and no real office hours are needed. A waiting list of future tenants is growing, for when tenants move on.
The owner/manager accommodation is one bedroom with ensuite and a separate kitchen positioned to the front of the hostel, and front office.
Facilities and services: include the following:
- Cooking / kitchen facilities with communal kitche.n.
- Barbeque.
- Fridges and television in in communal lounge.
- Fully equipped laundry with owned sheets.
- Coin operated air conditioners and washing machines.
It is through these extra services that the current vendors have built a very successful business.
Net Profit: $260,019 for 2021/22
Contact Antonio Curulli from Tourism Brokers for further information or to arrange an inspection.
Property ID: 2718BF (quote when enquiring)
Property Code: 4239
Business Summary
Key Investment Insights
1. High occupancy rate of close to 100%.
2. Low operational costs.
3. Shifted focus to short term rentals, making it COVID-proof.
4. Strong connections with inbound workers.
5. Projected to surpass $400,000 in gross rental next year.
6. Located in a popular tourist destination.
7. Main street frontage.
8. Licensed for 69 beds.
9. Cash cow with a 16% return on investment.
10. Waiting list of future tenants.
11. Owner/manager accommodation included.
12. Facilities and services such as communal kitchen, barbecue, and laundry.
13. Extra services such as air conditioning and washing machines contribute to success.
14. Net profit of $260,019 for 2021/22.
15. Potential for growth and expansion.
16. Minimal office hours required.
17. Easy to manage.
18. Established business with a good reputation.
19. Strong potential for long-term success.
20. Support and assistance from current owners during transition.
