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 listing and long-held asset continuity.
2. Large 1.25 hectare coastal landholding, offering scale and flexibility for multiple end uses.
3. Current zoning commercial with potential residential development, enabling redevelopment or mixed-use strategies.
4. Prime location 3.5 km from Airlie Beach town centre, directly off Shute Harbour Road with sealed driveway access, providing strong visibility and convenient access.
5. Existing accommodation income streams include a 20-room motel, 12 double rooms and 8 triple rooms, with rooms described as clean and generously proportioned.
6. Eight two-storey townhouses, all tenanted, configured as four 2-bed 2-bath and four 2-bed 1-bath, offering stable rental income and immediate cashflow.
7. Clear rental upside for townhouse stock, with comparable 2-bed properties achieving $750+ per week in the area after a soft refresh.
8. On-site former restaurant and bar with commercial kitchen, plus reception and a manager’s residence 3 bed 2.5 bath, supporting operational versatility.
9. Large open land areas and ample on-site parking with easy manoeuvrability for coaches and boats, suitable for expansion or re-masterplanning.
10. Fully serviced site with power, 30 kW solar water system, sewer connection and bore water, reducing infrastructure delivery risk for redevelopment.
11. Multiple viable value-add pathways: operate and optimise to increase ADR and occupancy, refurbish and reposition to boutique standards, or redevelop leveraging development-friendly zoning.
12. Market context favourable; serviced land around Airlie Beach is scarce and local accommodation sustains historical occupancy in the 65 to 70 percent range, supporting both investor and developer appeal.
