Denman, New South Wales
DENMAN - CLOSE to SYDNEY and NEWCASTLE - PRICE REDUCTION, IMPROVED PROFIT IN COVID YEAR.
SOLD
Business Description
The present owners are proud custodians who have meticulously maintained the Denman property. They and their guests enjoy the delights and ambience of the Denman district. Featured in the area are the Wollemi National Park, numerous Horse studs and of course the vineyards of the Upper Hunter valley. A significant number of the motel's clientel are involved with "essential services". The adverse effects of COVID 19 have been at a minimum due to the patronage by these "essential services" guests.
The new financial year has already received a tremendous boost by successfully obtaining a booking of 13 rooms for 80 nights.
* RENT of $108,133 is only 36.1% of total adjusted profit for 2020. Majority of leases are in excess of 45%
* 33% Return on Investment based on 2020 trading and NOT including Covid 19 Government subsidies of $22,288
* Adjusted profit for 2020 is $191,613 after rent. This does NOT include Covid 19 Government subsidies of $22,288
* 25 years remaining on Lease as of December 2020
* 16 Rooms with 3.5 to 4 star ratings.
* 4 Bedroom stand alone residence, lockup garage, pool with covered BBQ area.
* approximately 70% Occupancy. 9.3 Booking.com rating
* Quiet location yet still has Highway exposure.
* Owners do no cleaning.
Business Summary
Key Investment Insights
1. Prime location: The business is located in Denman, a popular tourist destination close to Sydney and Newcastle. This provides a steady flow of customers and potential for growth.
2. Strong financial performance: Despite the challenges of COVID-19, the business has shown improved profits in the past year. The rent is also significantly lower than the industry average, which contributes to the high return on investment.
3. Diverse customer base: The business has a diverse customer base, with a significant number of guests from essential services. This provides stability and reduces the impact of external factors on the business.
4. Long-term lease: The business has 25 years remaining on the lease, providing security and stability for potential buyers.
5. Well-maintained property: The current owners have taken great care in maintaining the property, which has a 3.5 to 4-star rating. The property includes a 4-bedroom residence, lockup garage, and pool with a covered BBQ area.
6. High occupancy rate: The business has an occupancy rate of approximately 70%, with a 9.3 rating on Booking.com. This indicates a strong demand for the business and potential for growth.
7. Quiet location with highway exposure: The business is located in a quiet area, providing a peaceful and relaxing environment for guests. However, it still has highway exposure, making it easily accessible for travelers.
8. Low maintenance: The current owners do not handle cleaning, reducing the workload and allowing potential buyers to focus on other aspects of the business.
9. Potential for growth: With the recent booking of 13 rooms for 80 nights, the business has already shown potential for growth in the new financial year. There is also potential for further growth through marketing and expanding services.
10. Attractive return on investment: The business offers an attractive return on investment of 33%, based on 2020 trading and not including government subsidies related to COVID-19. This makes it a lucrative opportunity for
