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

Marketing Agent
Jim McDonald
Jim McDonald

Jim McDonald Brokers

Jim McDonald Brokers

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
Listing location

This Business is sold

Listing Tools

Management Rights

Receive new listing alerts

Sign up
Similar Hotels, Motels For Sale

You may also like

Seeking a dedicated and proactive Building Manager (contractor)
Enviable Lifestyle with a Reliable Cashflow
Freehold Business in Lambton for $3.25M, Developers Dream - 125HF
Large & Profitable in Napier
Lake Boga Pub - 1P6058
Exceptional FHGC Caravan Park for Sale in Historic Charters Towers - 1056CPF
EASY Business and LARGE Remuneration with 3% annual increase!
TWO SIDE-BY-SIDE PERMANENTS NETTING $583K FOR 4.8X MULTIPLIER | Resort Brokers ID : MR008354
Byron Bay Boutique Beachside Lifestyle Business | Resort Brokers ID : MR008358
OFF THE PLAN PERMANENT MANAGEMENT RIGHTS | LITTLE EAGLE NUDGEE BY PEET
FOR SALE BY EXPRESSIONS OF INTEREST - LaTrobe Motel Morwell VIC - 1P0435
GREAT STARTER MOTEL LEASE - NORTHERN RIVERS NSW
TURNKEY LEASHOLD OPPORTUNITY, EASE OF OPERATION, RUN REMOTELY | Resort Brokers ID : LH008359
Prime Freehold Opportunity: 41 Key Property Just 1 Hour from Hobart  | Resort Brokers ID : FH008355
EARN BIG WITH THIS NEW MLR BUSINESS-ONLY IN NEWPORT’S MASTERPLAN | Resort Brokers ID : MR008330
Prime Passive Investment Motel with secure tenants and exceptional potential! | Resort Brokers ID : INV008342
Strong Trading Well Presented Caravan Park on The Tablelands - 1P5799CP
Wanaka True Lifestyle Town - 13 Unit Motel