Mandalay, Queensland
First Time Ever Offered | 1.25 ha Coastal Holding | Motel + Townhouses + Exceptional Upside
Expressions of Interest
Business Description
Land: 1.25 ha (12,500 sqm)
Zoning: Commercial (current) / Residential (development)
A rare offering in the Whitsundays, Islands Inn hits the market for the very first time since being developed by the current owners in 1987. Positioned on a substantial 1.25 ha coastal landholding, this property presents an exceptionally flexible opportunity for accommodation operators, value-add investors, and mixed-use or residential developers alike.
Located directly off Shute Harbour Road with its own sealed driveway access, the property is just 3.5 km from Airlie Beach town centre—a gentle 30-minute walk—offering excellent visibility and convenience while still enjoying a peaceful, green outlook.
THE ASSET
Motel – 20 Rooms
A two-storey motel building comprising:
12 x Double Rooms
8 x Triple Rooms
The rooms are clean and functional, with generous proportions typical of older-style construction. They would respond extremely well to a soft refurbishment—paint, flooring, curtains, furnishings—or a more comprehensive upgrade including expanded bathrooms and kitchenettes.
Permanent Letting – Townhouses
Eight (8) two-storey townhouses:
4 × 2-bed, 2-bath
4 × 2-bed, 1-bath
All currently tenanted, with strong rental demand in the region. Similar 2-bed stock in the area now achieves $750+ per week, presenting clear upside from the current lower rental levels after a soft refresh.
Additional Improvements
Former restaurant & bar with commercial kitchen (not in operation)
Reception and on-site manager’s residence (3 bed, 2.5 bath)
Large, open land areas suitable for future development or re-masterplanning
Ample on-site parking and easy manoeuvrability for coaches, boats, and guests
THE OPPORTUNITY
With large serviced land sites around Airlie Beach now extremely scarce, Islands Inn — fully serviced with power, 30kw Solar water, sewerage connection and bore water — stands out as a substantial value-add opportunity with multiple pathways:
Operate & Optimise
Modernise the rooms, activate effective digital marketing, lift ADR and occupancy, and realise the clear upside in the townhouse rents. Airlie Beach accommodation traditionally sustains strong year-round occupancy in the 65–70% range, with premium room rates during peak seasons, providing a solid foundation for a motivated operator to materially increase turnover
Refurbish & Reposition:
Comprehensive renovation, bathroom upgrades, or reconfiguration to modern motel / boutique accommodation standards to drive up nightly rates and occupancy. The large room size allows for introduction of kitchenettes to drive higher nightly rates
Redevelop:
Capitalise on the 1.25 ha land size and development-friendly zoning to create a new accommodation concept, a residential project, or a hybrid model.
A motivated, tech-savvy operator could materially increase turnover; equally, a developer will recognise the long-term potential of such a sizeable, well-located landholding so close to Airlie Beach and Shute Harbour.
EXPRESSIONS OF INTEREST:
Submit your Expression of Interest now for this rare mixed-use, large-scale opportunity in the heart of the Whitsundays. With 1.25ha of land, multiple income streams, and significant potential for refurbishment or redevelopment, Islands Inn offers an exceptional canvas for operators, investors, and developers seeking their next project in a tightly held market.
Business Summary
Key Investment Insights
1. First time offered since 1987, presenting a rare market entry for a long-held coastal asset.
2. Substantial 1.25 hectare coastal landholding, zoned commercial with residential development potential.
3. Prime location 3.5 km from Airlie Beach town centre, direct access off Shute Harbour Road via sealed driveway, offering visibility and convenience.
4. Existing accommodation income stream: 20-room motel comprising 12 double rooms and 8 triple rooms, rooms are clean with generous proportions and suitable for soft or comprehensive refurbishment.
5. Eight two-storey townhouses currently fully tenanted, mix of four 2-bedroom 2-bath and four 2-bedroom 1-bath units, providing stable rental income.
6. Clear rental upside for townhouses, comparable 2-bed stock in the area achieves $750+ per week, indicating potential to lift rents after refresh.
7. Additional improvements include a former restaurant and bar with commercial kitchen, reception and on-site manager residence (3 bed, 2.5 bath), adding operational flexibility.
8. Large open areas and ample on-site parking with easy manoeuvrability for coaches and boats, supporting event, group or tour operator demand.
9. Fully serviced site with power, 30 kW solar hot water, sewer connection and bore water, reducing infrastructure risk for redevelopment.
10. Multiple value-add pathways: operate and optimise to increase ADR and occupancy; refurbish and reposition to boutique standards; or redevelop the sizeable landholding for accommodation, residential or hybrid projects.
11. Market context advantage, with large serviced land parcels around Airlie Beach scarce, enhancing long-term development appeal.
12. Regionally supported performance, with Airlie Beach traditionally sustaining year-round occupancy of approximately 65 to 70 percent, underpinning upside for a motivated, tech-savvy operator.
