Port Douglas, Queensland

A Good Stable Holiday Letting Business

$1,615,000

Business Description

This Multi Award Winning Motor Inn sets itself apart from the usual management rights business and provides owners with some unique features.

Originally built very much to traditional motel style, the complex offers fully self-contained accommodation which is a strong point of difference appreciated by many travellers today. Without any owner occupiers and all lots in the letting pool, the business has a built-in advantage that enables management to deliver marketing strategies and guest service programs that work very well.

All 22 units in the property have been maintained to a high standard and are fully self-contained with every necessary guest amenity. The business has received industry recognition for excellence as 3.5 star accommodation although this rating probably understates the true situation. The result is this business is over delivering in standard and consequently guests’ expectations are exceeded from day one.

The manager’s residence is a very spacious two bedroom two bathroom apartment that is attached to a generous office and guest reception that is all on title. In addition, the owners freehold title includes a generous laundry and housekeeping facility, together with potential for new managers to explore options for expanded private living and revise guest reception.

The vendors have developed a formula that has proved to be very successful. They have steadfastly maintained guest services resulting in repeat business and very positive guest compliments on social media. This is a business that has all the fundamentals for successful trading.

Business Summary

Business Snapshot

Price: $1,615,000 Net Profit: $287,000 Remuneration / Body Corp Salary: $106,165

Managers Unit

Value of Managers Apartment: $525,000Bedrooms: 2Bathrooms: 2Car Spaces: 2Office: On TitlePets OK: Yes

Complex Information

Complex Type: HolidayTotal Units in Complex: 23Total Units in Letting Pool: 22Manager Units: 1Agreement Module: AccommodationAgreement Term: 25 yearsAgreement Term Remaining: 20 yearsPool: YesBBQ Area: Yes

Marketing Agent

Geoff Ellis

0432 79....

North Queensland Management Rights

Key Investment Insights

1. Multi award winning motor inn, strong industry recognition and positive social media reviews.
2. Fully self-contained accommodation across 22 letting units, differentiates from typical management rights offerings.
3. All 22 units in the letting pool, no owner occupiers, enabling unified marketing and consistent guest service programs.
4. High maintenance standard across all units, 3.5 star rating that reportedly understates actual quality.
5. Proven operational formula by vendors, resulting in repeat business and sustained guest compliments.
6. Attractive financials relative to asking price, price $1,615,000, net profit $300,235, managers/body corp remuneration $101,110.
7. Manager’s residence is a spacious two bedroom two bathroom apartment on title, value of managers apartment stated at $440,000.
8. Office and guest reception are on title and attached to the manager’s apartment, providing integrated operational space.
9. Freehold includes generous laundry and housekeeping facilities, supporting efficient back-of-house operations.
10. Opportunity for new managers to expand private living space and revise guest reception, indicating upside through operational changes.
11. Long accommodation agreement term, 25 years with 24 years remaining, providing tenure security.
12. Holiday complex amenities include a pool and BBQ area, pets allowed, and two car spaces for the manager, supporting holiday-market appeal.

Management Rights Multiplier: 3.80
ROI Estimate: 17.77%