Townsville City, Queensland
Strategic Investment Holding Gateway To Success In Hospitality! - 2016MI
INVESTMENT $3,900,000
Business Description
- Exceptionally rare opportunity secured by a solid building and lease to a tenant with a thriving business in the heart of Townsville.
- 38 guestrooms with capacity to sleep 100.
- 36 years remain on the lease including options from 14th August 2032 as at 2026 - (Lease term 8 years commenced 7th June 2024 and exp 14th August 2032 plus 3 x 10 year options)
- Lessee must redecorate at least once every 10 years in addition to ongoing paint, repaint etc as per per the lease.
- Solid low maintenance block construction with iron roof with low maintenance external areas
- Driveway and Parking: Low Maintenance concrete
- Seize the chance to step secure a strategic holding of 38 rooms, with strong cashflow in one of Australia's most promising hospitality markets. Coolabah Motel is not just an investment, in the longer term; it's a golden opportunity to embrace the strong vibrant culture and economic growth of Townsville.
- Established Infrastructure: The property features various configurations with some of the 38 (including quadruple, studio, and family options) equipped with kitchenettes, air conditioning, and flat-screen televisions.
- Onsite Amenities: Investors benefit from a property that includes an all-year outdoor pool, barbecue facilities, laundry services, and free on-site parking for guests.
- Repeat Clientele: The motel has a history of catering to work-related stays and long-term guests who value its quiet atmosphere and hospitable management.
Key Features:
Situated in the vibrant heart of Townsville (Bowen Road in Rosslea), a major corridor in Townsville with high visibility to key landmarks, the Coolabah Motel is strategically positioned to attract a diverse range of guests. Conveniently located near major attractions, business districts, and transport hubs, this motel is a hot spot for both business and leisure travelers.
Tourist Hub: Townsville is a thriving tourist hub, attracting visitors with its stunning coastal views, the iconic Magnetic Island, and a range of cultural and recreational activities. The motel benefits from the city's appeal as a gateway to the Great Barrier Reef, making it a sought-after destination.
Proximity to Business Centers: Ideal for corporate travelers, Coolabah Motel is strategically located near key business districts, making it a preferred choice for professionals attending conferences, meetings, or trade events in Townsville.
Why Invest in Coolabah Motel?
Proven Revenue Stream: With a variety of room types and modern amenities, Coolabah Motel caters to a broad spectrum of guests, from corporate travellers to families and tourists. The property currently has in place a long term Government contract for all of the rooms and is running at 100% occupancy and that is expected to continue for the foreseeable future. Strong demand: The city’s rental market is exceptionally tight, with vacancy rates below 1%, ensuring constant demand for short term and corporate accommodation from workers, students and tourists.
Upward Trajectory: Capitalize on the region's economic growth and increasing tourism trends. Townsville's status as a business and leisure destination ensures the motel's upward trajectory in the market.
QLD offers investor- friendly policies, such as a $600,000 tax-free land value threshold for individuals and $350,000 for companies (Significantly higher than Victorias $50,000, making it a preferred state for investors.
Annual Rent: $277,000 plus GST
Contact Michael Philpott from Tourism Brokers for further information or to arrange an inspection.
Property ID: 2016MI (quote when enquiring)
Property Code: 5379
Business Summary
Key Investment Insights
1. 38-room motel with capacity to sleep 100, offering diverse room types including quadruple, studio and family configurations with some kitchenettes, air conditioning and flat-screen televisions.
2. Long secure lease structure, 8-year initial term commenced 7 June 2024 expiring 14 August 2032, plus 3 x 10-year options, stated as 36 years remaining including options as at 2026.
3. Tenant obligations include mandatory redecoration at least once every 10 years, plus ongoing painting and maintenance as per the lease, reducing landlord capex risk.
4. Long-term government contract covering all rooms, currently delivering 100% occupancy and a proven revenue stream.
5. Annual rent specified at $277,000 plus GST, providing predictable income for investors.
6. Solid, low-maintenance building construction with block walls, iron roof, low-maintenance external areas and concrete driveway and parking, lowering ongoing upkeep costs.
7. Onsite amenities include an all-year outdoor pool, barbecue facilities, laundry services and free on-site guest parking, enhancing guest appeal and retention.
8. Repeat clientele base focused on work-related stays and long-term guests, indicating stable, recurring demand and favourable cashflow dynamics.
9. Prime Townsville location on Bowen Road Rosslea, a high-visibility corridor near major attractions, business centres and transport hubs, attractive to both corporate and leisure travellers.
10. Tourism advantages as a gateway to Magnetic Island and the Great Barrier Reef, supporting leisure demand alongside corporate bookings.
11. Local market fundamentals strong, with rental vacancy rates under 1% driving sustained demand for short-term and corporate accommodation from workers, students and tourists.
12. Queensland investor-friendly policy environment highlighted by generous land value thresholds, positioning the asset favourably for investors compared with other states.
