Spring 10 Informer

Transcription

Spring 10 Informer

the tourisminformer
spring ‘10 free publication
specialist tourism and hospitality brokers
Edgewater Palms Apartments, Management Rights, Bay of Islands - Page 8
www.resortbrokers.co.nz
proudly published by
®
the tourism informer
helping you buy and sell tourism and hospitality properties throughout New Zealand
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9
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Resort Brokers has secured a line of funding specifically
for the acquisition of motel leases. We have been working
hard to overcome the major impediment of lack of funding
due to recent difficult market conditions, and have now
been successful in securing a substantial amount of money
specifically earmarked for motel lease lending.
Funding of motel leases became extremely difficult as the
traditional sources dried up. The result has been low sales
volumes and vendors facing erosion of prices. Well hopefully
those days are gone for Resort Brokers’ clients with the
establishment of this new fund. The money will only be
available to our clients and the facility will definitely not extend
to any of our competitors. This then gives our brokers a huge
comparative advantage in achieving confirmed sales.
Resort Brokers see this as a major development and we will
ensure that we capitalise on the benefits for both our buyers
and vendors alike.
SO
newsflash - funding available!
We are pleased to report the following
sales transacted over recent weeks:
Ray Hart has sold the business of
Executive on Fenton, Rotorua, and the
freehold going concern and then the
business of Brylin Motel, Rotorua. Ray
also sold the freehold going concern of
The River Lodge, Reporoa.
Lindsay Sandes has sold the business
of both The Peaks Motor Inn, Ohakune
and King’s Court Motor Lodge, Hamilton.
Lindsay has also sold the management
rights of the Central Auckland Precinct
Apartments, and the Building Manager’s
Role at the Statesman Apartments, also
in Auckland.
Brent Hannah has recently sold the
freehold investment of Quality Inn
Collegiate in Wanganui.
Marty Easton has sold the business of
Monarch Motel and 554 Moana Court
Motel, both in Invercargill, and the
business of Airport Greens in Nelson.
SO
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We are pleased to welcome two new members to our team.
Michael Osborne joins us both as a broker
who will cover Northland from Orewa
upwards, and as our Special Projects
Manager - see page 10 for more details
of this. Michael has experience both as a
developer of tourism related properties and
as an owner and operator of management
rights businesses.
Murray Stott joins us to pioneer our
Entertainment & Media Division. Murray
has 40 years experience of business
ownership operating throughout New
Zealand and in the entertainment & media
environments of London and Sydney.
Welcome to the team Michael and Murray.
recent sales
LD
Quest Dunedin
3
Burgundy Rose Motel, Whangarei
4
Admiralty Lodge Motel, Whitianga
5
Article: Understanding Leases
6-7
Edgewater Palms Apartments, Paihia
8
Affordable Westshore Holiday Park, Napier
9
Article: Managed Investments
10 - 11
Amber Court Motel, Nelson
12
Harbour View Motel, Coromandel
13
Article: Is Discounting the Solution?
14 - 16
Alpine Motel & Sassi’s Bistro, Ohakune
17
Kerikeri Court Motor Lodge, Northland
18
Cedar Lodge Motel, Rotorua
19
Ahipara Holiday Park, Northland
20
Peninsula Motel, Whitianga
21
Waipu Cove Resort, Northland
22
Victoria Railway Hotel, Invercargill
23
Paihia Pacific Resort Hotel, Northland
24
Kaimai View Motel, Katikati
25
Article: Website Facts
26
Gables Motor Lodge, Greymouth
27
Article: Best Western Returns to New Zealand
28
Specialists to the Industry
29-31
Contact Details
32
welcome michael & murray
SO
contents
quest dunedin
freehold investment FOR SALE - dunedin
the great southern quest
The freehold investment opportunity of Quest Dunedin is
being offered for sale by the developer for an approximate
7.5% return on investment at $8.5 million with a little
room for negotiation for an acceptable Sale & Purchase
Agreement.
This is a good investment for a solo investor or perhaps
a syndicate of investors, as the business lease is 20
years from opening date (in 2007) and is a purpose built
accommodation business that would logically want to extend
the term of the lease.
As part of an international franchise accommodation
PURCHASE PRICE & FINANCIAL INFORMATION
$8,500,000
Freehold Investment for Sale
Vendor Willing to Consider All Offers
WEBSITE ID NUMBER 815
INVESTMENT SUMMARY
PROPERTY FEATURES
group, the Quest Dunedin is a long term player in the
accommodation sector and should be looked upon as a
genuine investment opportunity.
Quest Dunedin is Qualmark rated 4+ star and is situated
in the heart of the vibrant city of Dunedin. Arguably the
most centrally located accommodation provider, within
close walking distance to many of the city’s attractions
and facilities. The property is ideal for the corporate guest
wishing to have a little more facilities than a motel style
room, as the apartments are geared for longer term guests
and weekend leisure.
marty easton
Mobile: 64 21 688 819
Facsimile: 64 3 366 9886
Email: [email protected]
v
42 unit apartment building with quality fitout
v
26 studio apartments and 16 one bedroom
apartments, 14 of which are twin keyed with
a studio apartment to allow for a 2 bedroom
apartment configuration
v
Undercover offstreet parking
v
10 + 5 + 5 year lease in place with Quest
v
Guaranteed Annual Rent Increases
LINDSAY SANDES
Mobile: 64 21 895 940
Facsimile: 64 9 369 1100
burgundy rose motel
business lease or fhgc FOR SALE - whangarei
WEBSITE ID NUMBER 834 & 835
secure your new home and income
This is a great first time opportunity to take ownership of
a new 25 year lease. Burgundy Rose was significantly
refurbished in early 2010 and is now enjoying the spoils of
new business to compliment the loyal existing clientele.
The owners have given the property a new lease of life so
its all over to you, this is your chance to get in on the ground
floor and build some equity in the business for your future
benefit. Burgundy Rose has a lovely feel with a very liveable
3 bedroom owner’s apartment. The living area is open plan
with a great indoor outdoor flow to a fully fenced private
lawn capturing the sun.
Business Lease $200,000, FHGC $1,100,000
Business Lease or FHGC For Sale
Brand New 25 Year Lease
INVESTMENT SUMMARY
PROPERTY FEATURES
Accommodating predominantly corporate clients through
the week with families and free independent travellers
at the weekend. Quality conference venues and sporting
facilities have given Whangarei an edge and your challenge
is to capitalise on the existing success.
The vendor is in a position to sell the freehold going concern,
or the business and freehold investment as separate
entities.
Make the decision today to move to a warmer climate and
reward your own efforts.
wayne keene
Mobile: 64 21 666 991
Facsimile: 64 9 369 1100
9 studio and family units
3 bedroom owner’s apartment that includes a
sunny and fully fenced courtyard that is quiet and
private, and a double garage
v Beautifully refurbished
v Private spa pool and bbq area
v Guest laundry
v
v
michael osborne
Mobile: 64 272 426 881
Facsimile: 64 9 369 1100
admiralty lodge motel
management rights - whitianga
5 star splendour
Look no further! Admiralty Lodge Motel is the only 5 star
Qualmark accommodation in Whitianga and benefits
considerably from its waterfront position having white sandy
beaches directly across the road.
18 superbly furnished and extremely spacious 1 bedroom
and studio apartments set around landscaped grounds and
a feature heated swimming pool.
Whitianga boasts swimming, diving, bushwalking, scenic
cruises, soaking in a hot pool at low tide, horse riding,
fishing, kayaking, relaxed shopping, dining on local cuisine,
FREE CD ROM
PROPERTY FEATURES
golfing, bone carving - an unspoilt playground of paradise - a v
recreational haven for your guests.
Imagine living in this holiday playground where your guests v
are there to enjoy themselves - everyone having fun including
you - but you get to make good money along the way.
v
Not only are you investing in solid land, buildings and
a business but most importantly “Tourism”
Magic 2 bedroom owner’s apartment and reception
in separate building on unit title included in price
10 year management agreement with a 10 year
right of renewal
Manager’s salary plus 12% of earnings
Call Now and be in Early for the Summer Trade
$799,000
Management Rights Plus Ownership of the Apartment and Reception
Established Business in Magic Location
gordon mcgregor
Mobile: 64 21 99 88 10
Facsimile: 64 9 369 1100
understanding leases
the often confusing terminology explained
Although with the advent of plain English drafting,
commercial leases are arguably easier to understand
now than once they were, they still manage to give
rise to much confusion. I can still remember from my
childhood the title of a pop song sung by an American
called Johnny Tillotson. The song presumably about
an object of his affection was called “Poetry in
Motion”. My young ears heard instead “Oh a tree in
motion” and so the meaning of the song, if there was
any, was lost to me and for some time afterwards I felt
vaguely uneasy in the
presence of any plant
larger than a bush.
The legal language
and
jargon
often
employed, even now, by
lawyers when drafting
commercial leases can
also lead to confusion
and misunderstanding. I
am frequently reminded
of this confusion by the
questions that even
experienced business
people ask of me
when I am reviewing
lease documents and
agreements to lease.
With this in mind I
thought it might be
Seaton Read, Partner of useful to explain or
Harmans Lawyers based in demystify a selection of
these terms for those
Christchurch
readers who, although experienced with the business
end of leasing may be at times nonplussed with
some of the terms used. I have therefore chosen a
selection of some of the usual culprits and to each of
them I have added a brief explanation.
Lessor:The landlord
Lessee:The tenant
Term: The duration of the time the lease is in force
Renewal of Lease: Where the lease is extended
pursuant to a contractual right normally given to
the tenant in the lease document. Usually the
existing terms of the lease are carried on and only
the duration of the lease is altered. This is to be
contrasted with a new lease where the parties are
free to negotiate any new terms that they can agree
upon but where the existing lease and all its terms
comes to an end.
Rental Review: Pre-agreed dates during the term
of the lease at which either the landlord alone or, in
some cases either the landlord or the tenant may
require that the rental be reassessed. This is usually
based on a market rental but is sometimes fixed to a
formula such as CPI or a fixed percentage increase.
Rental reviews are not to be confused with lease
renewals. Frequently both occur at the same time
but that is not always the case.
Ratcheted Rental: Where the rental on a rental
review may not be reduced below a certain point.
This may be a predetermined amount, it may be the
initial rental payable at the start of the lease or it
may be rental payable immediately preceding the
review. The distinction is significant
Chattels: Chattels are personal property that can
be completely transferred by delivery i.e. portable
things, as contrasted with fixtures, which are
things that are affixed to real property i.e. land and
buildings, by permanent means. Chattels may be
owned either by the landlord or the tenant. By law
and according to their nature, fixtures belong to the
landlord whether they are installed by the tenant
or the landlord - although this presumption may be
displaced by express agreement.
Tenant’s Improvements: These are improvements
carried out or paid for by the tenant, normally to
the land and buildings or perhaps to the landlord’s
chattels. Surprisingly these are included in the value
of the property upon rent review unless there is an
express direction in the lease that they are to be
disregarded.
Tenant’s Fixtures: Tenant’s improvements that are
structural and are carried out by the tenant to the
landlord’s property. They almost always require
the consent of the landlord. Because fixtures are
fixed to the landlord’s buildings they become part
of the landlord’s property unless the lease provides
otherwise. Some leases provide that the tenant
may remove their fixtures at the end of the lease.
Some leases make the removal of tenant’s fixtures
compulsory. In either case it is usual for the lease to
provide that the tenant must make good the damage
caused by such removal. Alternatively the landlord
may elect for the fixtures to remain there as part of
the landlord’s property without any payment to the
tenant.
by SEATON READ, partner, harmans lawyers
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Make Good: That is the term which defines the
process by which the tenant shall repair the premises
upon removal of the tenant’s fixtures.
Net Rental: That is where the rent excludes other
payments (outgoings) made by the tenant such as
for rates and insurance.
Gross Rental: That is where the rent includes
outgoings.
Improvements Rent: Additional rental calculated
by applying a pre–agreed interest rate to capital
expenses paid by the landlord for additions,
alterations or improvements to the property, usually
limited to where that expenditure has been required
by local or central government. An example of this
would be where additional fire detection or fire
fighting equipment was required to be installed in a
leased building.
Registered and Unregistered Leases: A leasehold
interest may be registered against the title to a
property. This has advantages in that it is notice to
all the world of the lease and it gives protection of the
tenant’s interest against, for example, a purchaser
of the land and buildings who might otherwise not
be aware of the lease and therefore not be bound
by it, or against a person or entity who lent money
against the land and buildings without knowledge
of the lease and who again would not be bound by
the lease should their security be realised. Not all
leases can be registered however such as where the
lease is for part only of a legal title and where there
is no separate legal description (lot and DP number)
for the land being leased.
Transfers and Assignments: These occur when the
leased premises change hands and a new tenant
takes over. Registered leases are transferred in
the same way as a freehold property interest but
unregistered leases are assigned by the parties
signing a deed of assignment of lease.
First Right of Refusal: Many long term leases give
the landlord the first right of refusal to acquire the
lease on sale of the tenant’s business, or the tenant
the right to acquire the fee simple when the landlord
wishes to sell the landlord’s buildings. First rights of
refusal merely ensure that the person wanting to sell
offers the property to the landlord or the tenant as
the case may be upon terms that are no worse than
they are offering to sell them to a third party.
Option: Options differ from first rights of refusal in
that the party who has the option (either the landlord
or the tenant) may call for the other to sell during
the option period. In the case of an option the price
must be pre–agreed or a formula for fixing the price
must be agreed upon.
These are just some of the terms that I am asked
about on a regular basis when preparing or reviewing
leases for clients. Although important to all leases,
the lengthy terms and comprehensive obligations
contemplated by leases in the hospitality industry
make a basic understanding of these terms all the
more important for persons involved in this industry.
For more information about this subject, please
contact Seaton Read on 03 379 7835, or by email
at [email protected]
Seaton became a partner at Harmans in 1976. After
an initial grounding in litigation he concentrated on
establishing a commercial and conveyancing client
base.
His areas of practice include business and
commercial
transactions,
commercial
and
residential property, leasing, subdivisions, trusts
and estate planning.
Seaton’s special interest and expertise is advising
clients in the hospitality industry. Over the last
20 years, he has come to act for the owners and
operators of hotels, motels, motor inns, restaurants
and other tourist-related industries.
edgewater palms
management rights AND ASSOCIATED REAL ESTATE - bay of islands
often described by clientele as paradise
An exclusive opportunity now exists for you to secure what
must be described as one of New Zealand’s premier resorts.
Located on the waterfront of Paihia Beach, Edgewater
Palms enjoys some of the finest vistas and sunrises that
just make life worth living. What’s even better, as owners of
the business you can experience all of this from the ideally
located owner’s accommodation.
Edgewater Palms has been operated successfully with a
management structure since opening in December 2005
and continues to enjoy growth with its largest asset being
the repeat business from existing clients.
INVESTMENT SUMMARY
PROPERTY FEATURES
Only walking distance to town and close to restaurants
and bars the apartments offer corporate clientele and free
independent travellers an all round experience.
Edgewater Palms enjoys a Qualmark 5 star rating and has
received an International Tourism Award and Best Property
in Australasia award for international brand Clarion.
Now being offered for the first time you can purchase the
business and associated freehold assets, alternatively
the Vendor will consider selling the business only with a
commercial arrangement over the relevant freehold unit
titles.
$850,000 for the Management Rights Business & $700,000 for the Real Estate
Management Rights and Associated Real Estate For Sale
An Exciting And Rewarding Opportunity With Strategic Freehold Ownership
25 two bed apartments with two ensuite bathrooms
9 one bedroom apartments with ensuite
Secure underground car parks with two lifts
Infinity style saltwater pool
Healthy letting pool having predominantly offshore
ownership
v Good size 2 bed owner’s accommodation includes
adjoining reception and two car parks
v 20 year Management Agreement
v
v
v
v
v
wayne keene
Mobile: 64 21 666 991
Facsimile: 64 9 369 1100
affordable westshore holiday park
freehold going concern or business FOR SALE - napier
simply superb
This superbly presented holiday camp is situated in Napier,
renowned for its sunshine and favourable climate.
The park is located in the suburb of Westshore, the gateway
to Napier and Napier’s safe swimming beach. Westshore is
also close to Ahuriri and its vibrant restaurant, bar and cafe
scene.
Over the past nine years the complex has undergone
major upgrading, which is reflected in the 4 Star Qualmark
rating. Now is the opportune time to purchase either the
freehold going concern or just the business only of this well
INVESTMENT SUMMARY
PROPERTY FEATURES
performing holiday park in “top notch” order.
The camp enjoys an excellent occupancy, with an extended
holiday season patronised by generally holiday makers,
tourists, fishermen, yachties and boaties.
Spacious 3 bedroom owner’s accommodation with large
garaging and workshop area, office and reception area
complete this exciting offering. The camp can be easily
operated by a husband and wife team with cleaning and
maintenance staff in place.
$450,000 for the 25 year Business Lease, or
$2,400,000 for the Freehold Going Concern
Consistent Trading Figures Provide The Operators With Excellent Returns
v
v
v
v
v
v
v
Great location minutes from Westshore’s safe
swimming beach and the vibrant Ahuriri cafe scene
Provides caravan and motor home sites, motel
units, on site caravans, cabins and tent sites
All communal service facilities in 1st class condition
Major upgrade over last 9 years
4 Star Qualmark rating
Further potential for enthusiastic owners
Call me now!
brent hannah
Mobile: 64 21 359 678
Facsimile: 64 6 835 9899
managed investments
an introduction to our new special projects division
At Resort Brokers we have relationships throughout
New Zealand with most managed apartment
properties. We have access to apartments that are
for resale and we are informed of new projects that
are in the planning stages.
The status of these investments vary from apartments
that can be owner occupied on a permanent basis to
limited or unlimited owners’ use.
These apartments are typically in key tourist
destinations such as:
v Queenstown
v Marlborough
v Taupo
v Mount Maunganui
v Whitianga
v Paihia – Bay of Islands
In addition we have access to investment apartments
in gateway locations like Auckland, Wellington and
Christchurch.
These apartments are generally on unit titles and
are sold as a going concern for tax purposes if
the purchaser is registered for GST at the time of
supply.
It is very common for foreign ownership or expatriates
to own an apartment in a resort complex that is fully
managed on their behalf and they simply advise
the management in advance when they will require
owner’s use for vacation or personal reasons.
Michael Osborne is Special Projects Manager at
Resort Brokers and will co-ordinate the data and
information base for both buyers and sellers in this
market segment.
We will be in a position to tailor a property to your
specific interest or sport and leisure group.
Our website will feature properties for sale and/or
trade.
This is a welcome service to management rights
owners who want to assist existing owners that may
need to sell an apartment – however it is important
to all operators to retain managed apartments in
their pool to maximise both occupancy and income.
Michael has experience both as a developer of
tourism related properties and as an owner and
operator of management rights businesses.
Michael has been involved with the development and
management of the award winning Edgewater Palms
property in Paihia over a seven year period.
10
Michael was project manager
for the redevelopment of Sails
Apartments on the waterfront
in Taupo and currently is
an investor director of the
Nautilus Resort at Orewa
on Auckland’s “Gold Coast”.
This is a complex of 152
apartments.
Along with transacting the
sales of these apartments, our Special Projects
Division is also available to provide consultancy
services to financiers, developers and existing
owners.
We can assist at all stages of a project including
refurbishment, redevelopment and/or peer review
of specialist documentation.
We will review asset realisation strategies for those
who wish to divest or consolidate property portfolios
in the hospitality industry.
We offer a free registration service to include your
property on our database, for further information
about this new division, or to join our database,
please contact Michael Osborne on 0272 426 881,
[email protected], or contact your local
Resort Brokers representative.
managed investments
examples of our managed investment listings
The Perfect Solution to a Beach House
Return on investment and potential for capital growth v
v Complete management - serviced and self contained v
v Swimming pool and spa pool in most properties v
v Situated in popular tourist or gateway locations v
v The administration all done for you v
v Limited restriction to owner’s use v
v Secure parking and storage v
v Qualmark rated 4 & 5 star v
v Low Body Corporate fees v
v No grounds to maintain v
v Lock up and leave v
v Security in place v
v
Prices Range From
$400,000 to $800,000
Gross Incomes From
$25,000 - $55,000
For more information about the apartments we have for sale contact Michael on 0272 426 881, [email protected]
11
amber court motor lodge
business lease FOR SALE - nelson
put yourself in the picture
This well located property is just minutes away from Nelson’s
Tahunanui Beach and the cafe society now surrounding
the beach. Enjoy a leisurely stroll along the beach front
promenade to the seafood markets, restaurants and bars
nearby. Being situated halfway between Nelson city and
the shopping suburb of Richmond, also the gateway to the
Tasman District, we believe this to be an ideal location for a
stay at any time of the year.
The property has a good business mix of studios, one and
two bedroom units giving the customer plenty of options
and groups are also catered for. With all the units being
INVESTMENT SUMMARY
PROPERTY FEATURES
ground floor, it’s easy for the guests to come and go to their
rooms, and certainly helps make the cleaning of the units
a lot quicker. The units are set well back from the road so
noise is not an issue for most of the rooms and the only
rooms that are closer to the road have needed to be fitted
with hush glass.
We would recommend a closer inspection of this property
as we are nearing the busy Summer period where good
cash flow is available, and this Summer will be followed by
the boost from the Rugby World Cup which will make many
operators’ bottom line look very good in 2011.
$480,000
Business Lease for Sale
Priced to Sell, Not to Sit Around!
16 ground floor units
Well kept grounds including a BBQ area
Secure complex as all traffic entering the property
can be seen from the units and the owner’s
residence
v 1.5km to Tahunanui Beach
v Close to Nelson Airport
v Walking distance to cafes and bars
v
v
v
marty easton
Mobile: 64 21 688 819
Facsimile: 64 3 366 9886
12
harbour view motel
freehold going concern FOR SALE - coromandel
income with lifestyle in a golden location
Blessed with some of the best harbour and island views
to be had, this established Coromandel gem now awaits
its lucky new owner. Seldom do motels in such a sought
after location and top presentation come to the market….
especially as a freehold going concern!
But, the views and location are only part of the story. The
area around Coromandel is an amazing nationally and
internationally renowned tourist and holiday destination.
Harbour View Motel certainly benefits from its privileged
location and the impressive occupancy shows its owners a
healthy return. And… no rent to pay.
INVESTMENT SUMMARY
PROPERTY FEATURES
The motel has spacious units, each with their own deck which are a favourite feature with guests.
Want to change your lifestyle and location? Then, here it is
- a rare opportunity to earn a solid income and build up your
equity.
The easy-care landscaping, well maintained buildings and
easily run business just add to the lifestyle balance you
seek. Perfect for the experienced motellier and those new to
the industry. Vendor might also be prepared to leave money
in for the right purchaser.
$1,550,000
Freehold Going Concern
We Will Make it Easy For You to Begin Your New Life in “Paradise”
v
v
v
v
v
A strong business in a sunny location with magic
outlook
Very comfortable 2/3 bedroom owner’s
accommodation
6 one bedroom units and 1 studio unit
Opposite and overlooking harbour
Handy to historic Coromandel’s cafes, beaches,
popular walking tracks and tourist attractions
gordon mCgregor
Mobile: 64 21 99 88 10
Facsimile: 64 9 369 1100
13
is discounting the solution?
a major industry concern examined
Seldom will any motel
operator think about
discounting when the
market is strong and
the business is going
well. However, when
business declines or
looks set to decline
many
operators
consider the option
of discounting – a
rudimentary fix for
declining trade – but
what are the effects?
It surprises us that many operators of motels have
little idea of just how their business is performing
on a monthly basis and it is often not until their
accountants present them with their annual accounts
that they have a semblance of the past year’s trade.
So to consider discounting without any real analysis
of the financial effects can be disastrous. Dropping
room rates is the easiest thing to do and may seem
like the only logical approach to adopt in a declining
market – we hope to give you another perspective
on this issue.
“Look to reposition
yourself upwards
instead of cheapening
your product by
reducing price”
The New Zealand
accommodation sector
has been reasonably
insulated from the
international effects
of several Gulf Wars,
SARS, Asian crises, terrorist attacks, Bird Flu and
political unrest. Statistics have shown us that our
accommodation markets bounced back faster than
most other countries. However, dark clouds hit the
horizon for many of our operators as long ago as two
years with higher petrol prices, higher food costs
and increased interest rates affecting domestic
travellers. Just as these events settled we were
lumbered with the credit crisis which has been a
world wide event and has been of a lasting nature.
The effects to this crisis and the ripples to follow look
set to be with us for some time to come as the focus
goes onto sovereign debt issues. Governments can
only get more money by raising taxes and the mere
act of higher taxes means lower disposable incomes.
Many travellers make decisions on trips and holidays
based on a combination of cash at hand, cost of
travel, and future prospects.
So as total room nights sold are under threat
many motelliers dust off the sandwich boards
demonstrating an acceptance of tougher times
ahead and a quick fix attitude. Reducing room rates
seldom ends up in getting more business in anything
other than the short term as the market has proven
that others will match or better your pricing structures
and so the downward spiral begins. In tougher times
it is often better to concentrate on increasing your
revenue from other income steams – up-selling
your inventory, promoting the use of the pay laundry
facilities, pushing tourism operators and restaurants
and receiving commissions, complimentary early
check in and late check out, or utilising excess
14
Figure 1:
ABC Motel - New Zealand
Number of rooms
Rooms Available
Rooms Sold
Occupancy
Average Room Rate
$
20
7,300
4,700
64.4%
115.96
2010
Year
$
545,000
$
Per room
27,250
%
100%
Accountant
ACC
Advertising
Bank Charges
Chargebacks
Cleaning/general ex.
Commissions
Computor
Credit card fees
Electricity/Gas
General Expenses
Insurance
Fees/Permits/Subs
Hireage/Rental
Laundry
Maintenance Fund
Miscellaneous
Motor Vehicle Ex
Printing & Stationary
Pool/Ground Maint.
Purchases - food & bev.
Rates
Rent
Repairs & Maint.
Replacements
Rubbish/Security
Sky
Telephone
Uniforms
Wages
Total Costs
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,461
2,351
16,213
3,514
1,343
3,685
963
1,362
2,634
17,712
663
8,780
4,004
1,943
8,440
723
2,530
1,836
326
23,614
17,563
176,880
17,882
1,037
514
6,257
6,806
131
44,540
375,705
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Per room
73
118
811
176
67
184
48
68
132
886
33
439
200
97
422
36
126
92
16
1,181
878
8,844
894
52
26
313
340
7
2,227
18,785
%
0.27%
0.43%
2.97%
0.64%
0.25%
0.68%
0.18%
0.25%
0.48%
3.25%
0.12%
1.61%
0.73%
0.36%
1.55%
0.00%
0.13%
0.46%
0.34%
0.06%
4.33%
3.22%
32.46%
3.28%
0.19%
0.09%
1.15%
1.25%
0.02%
8.17%
68.94%
Profit pre tax, depreciation, borrowings and drawings
$
169,295
$
8,465
31.06%
Motel Revenue
LESS COSTS
capacity into another use.
If you are running your motel at 50% occupancy it
would be an easy process to check your records and
see how often your motel operates above 70% - if
your motel has 20 rooms it might pay to look at having
5 or 6 of the rooms let to permanent occupants on
monthly or 6 monthly tenancies.
by gordon mcgregor, director, resort brokers
You will also recall from previous articles by the writer
that the industry has a major problem in that not
enough revenue is put aside for repairs, maintenance
and refurbishment. Harder and quieter times might
give you an opportunity to pick up the paintbrush,
Figure 2:
Number of rooms
Rooms Available
Rooms Sold
Occupancy
Average Room Rate
Year
Discounting
20
7,300
4,700
64.4%
$ 90.00
2011
$ 423,000
$
Per room
21,150
Accountant
ACC
Advertising
Bank Charges
Chargebacks
Commissions
Computor
Credit card fees
Electricity/Gas
General Expenses
Insurance
Fees/Permits/Subs
Hireage/Rental
Laundry
Maintenance Fund
Miscellaneous
Motor Vehicle Ex
Pool/Ground Maint.
Rates
Rent
Repairs & Maint.
Replacements
Rubbish/Security
Sky
Telephone
Uniforms
Wages
Total Costs
$ 1,461
$ 2,351
$ 16,213
$ 3,514
$ 1,343
$ 3,685
$
747
$ 1,362
$ 2,044
$ 17,712
$
663
$ 8,780
$ 4,004
$ 1,943
$ 8,440
$
$
723
$ 2,530
$ 1,836
$
326
$ 23,614
$ 17,563
$ 176,880
$ 17,882
$ 1,037
$
514
$ 6,257
$ 6,806
$
131
$ 44,540
$ 374,900
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Per room
%
73
0.35%
118
0.56%
811
3.83%
176
0.83%
67
0.32%
184
0.87%
37
0.18%
68
0.32%
102
0.48%
886
4.19%
33
0.16%
439
2.08%
200
0.95%
97
0.46%
422
2.00%
0.00%
36
0.17%
126
0.60%
92
0.43%
16
0.08%
1,181
5.58%
878
4.15%
8,844 41.82%
894
4.23%
52
0.25%
26
0.12%
313
1.48%
340
1.61%
7
0.03%
2,227 10.53%
18,745 88.63%
$ 48,100
$
Motel Revenue
LESS COSTS
2,405
%
100%
11.37%
sew some new
curtains,
recover
some furniture or
the like. Look to
reposition yourself
upwards instead of
cheapening
your
product by reducing
price.
“Reducing room rates
seldom ends up in getting
more business in anything
other than the short term
as the market has proven
that others will match
or better your pricing
structures and so the
downward spiral begins”
Let’s have a look
at some numbers
(See Figure 1). In this situation I have assumed a
20 room motel that has been running profitably
based on an average room rate of $115.96 and an
occupancy of 64.4%. The costs detailed are based
on averages over 12 sample motels so this is not an
actual property.
Many operators understand the concept of increasing
room rates adds revenue almost unfettered to the
bottom line – what they seldom consider is that by
reducing the room rate it has the opposite effect.
The motel above has been operating pretty well with
the operator benefiting from a bottom line profit of
just short of $170,000.
Now let’s assume that the neighbours put out their
sandwich boards and market their comparable
rooms at $95.00 in an attempt to “steal” your
trade. “Not on” you say, so you try to dissuade the
neighbours from discounting but you hit a brick wall
because their occupancy has increased and they are
feeling smug about their marvellous initiative. Now
15
you feel that you have no choice and other operators
follow suit – you match the rate and beat it a bit in an
attempt to have customers come to your door. You
might even comfort yourself that it is a temporary
move and that you will only sell a few rooms at this
rate. Sorry, the rot has set in. Customers who have
paid more on the internet or through other means
arrive and see your discount signs and no amount
of explanation can relieve them of their frustration
– you’ll probably never see them again – customer
loyalty straight out the window. So now you and
others have entered a price war – who will be the
winner – the customers only. All operators stand to
lose. Only so many bed nights can be sold in any
particular market so acceptance of the situation
and maintaining the status quo is the most sensible
approach. However, you have now chosen to make
the bad times worse. You feel pretty comfortable
that you have maintained your occupancy at 64.4%
but let’s check to see what this has done to revenue
and bottom line (see Figure 2).
Now you can see that your revenue has reduced
$122,000 with a bottom line profit being only $48,100
(a reduction of $121,195). Reducing your room rate
has a very
minor effect
on costs of
operation.
You
now
have a very
susceptible
is discounting the solution?... continued
motel and any further price reductions will see you
out of business. We have seen a number of motelliers
walk from their businesses over the last 12 months
and if the situation persists others will soon follow.
Now if everyone was sensible and accepted that there
were less room nights available and all shared the
Figure 3:
Number of rooms
Rooms Available
Rooms Sold
Occupancy
Average Room Rate
Accepting Market
20
7,300
3,361
46.04%
$ 115.96
2011
Year
$ 389,742
Per room
$
19,487
%
100%
Accountant
ACC
Advertising
Bank Charges
Chargebacks
Commissions
Computor
Credit card fees
Electricity/Gas
General Expenses
Insurance
Fees/Permits/Subs
Hireage/Rental
Laundry
Maintenance Fund
Miscellaneous
Motor Vehicle Ex
Pool/Ground Maint.
Rates
Rent
Repairs & Maint.
Replacements
Rubbish/Security
Sky
Telephone
Uniforms
Wages
Total Costs
$
1,461
$
2,351
$ 16,213
$
3,514
$
1,343
2,635
$
$
688
$
1,362
$
1,884
$ 12,666
$
663
$
8,780
$
4,004
$
1,943
$
6,036
$
$
723
$
2,530
$
1,836
$
326
$ 16,886
$ 17,563
$ 176,880
$ 12,788
$
1,037
$
514
$
6,257
$
6,806
$
131
$ 31,851
$ 341,669
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Per room
73
118
811
176
67
132
34
68
94
633
33
439
200
97
302
36
126
92
16
844
878
8,844
639
52
26
313
340
7
1,593
17,083
%
0.37%
0.60%
4.16%
0.90%
0.34%
0.68%
0.18%
0.35%
0.48%
3.25%
0.17%
2.25%
1.03%
0.50%
1.55%
0.00%
0.19%
0.65%
0.47%
0.08%
4.33%
4.51%
45.38%
3.28%
0.27%
0.13%
1.61%
1.75%
0.03%
8.17%
87.67%
$
$
2,404
12.33%
Motel Revenue
LESS COSTS
48,072
burden then the situation would be quite different. If
everyone maintained their room rates and accepted
lower occupancy then there would have needed
to be an almost 20% drop in total room nights to
equate with the losses suffered by the industry in the
example above.
The figures to the left show that if you maintained
the rate then occupancy would need to drop from
64.4% to 46.04% before you netted the same
bottom line as the discounted model (see Figure
3).
NB. The costs in italics have been adjusted
rudimentary on a pro rata basis on changed
revenue.
So we can see that price wars are expensive
and only the guests gain from the experience. It
accelerates and exaggerates a problem. The only
way discounting works is if only a small part of the
market participates in the practice – if the majority
hold firm then the market can sustain and those that
discount can actually achieve extra-ordinary profits.
Other influences can also come into play to erode
your profit and you need to focus on costs as well.
Who do you think is going to pay for leaky homes
– Council’s main source of revenue is from rates and
they are in the gun for 25% of the remedial costs – so
rate payers will face increases as this impacts. Rates
went from 3.22% of revenue to a massive 4.15% in
the discounted model. Landlords are often seeking
a rent review even in hard times and the rent went
from 32.46% of revenue to 41.82% in the discounted
16
model. Now if a “The conclusion is easy –
rent increase is don’t discount, encourage
achieved the effect
others not to discount
is
compounded.
and survive to fight
The
emissions
another day”
trading scheme will
also ensure that electricity costs will increase with
some suppliers already announcing higher charges.
GST is also going up which will impact on costs even
though some is recoverable. You can see in every
day life, even in a recession costs can increase and
each and every time this happens it has a negative
effect on your bottom line.
The conclusion is easy – don’t discount, encourage
others not to discount and survive to fight another
day. Inexperienced and inappropriate behaviour
will not just help destroy your business but others
as well. Sit tight, control costs, offer incentives to
customers which don’t cost you money and accept
any market decline. It always comes right as it is in
human nature that we all want things to get better
and they will. It’s easy to reduce rate but it takes
years to get it back up again – a price war has lasting
effects.
If you would like to discuss this further, please
don’t hesitate to contact Gordon on 021 99 88
10, or email [email protected]
alpine motel & sassi’s bistro
freehold going concern FOR SALE - ohakune
‘steak’ your claim
Alpine Motel & Sassi’s Bistro is located in the heart of
Ohakune’s bustling town centre, just a short stroll to cafes,
restaurants, bars, shops and a short 20 minute drive to
Turoa ski field.
Since 2009 the motel has been refurbished, exterior restained, driveways and parking areas re-laid.
This extensive property consists of Sassi’s Bistro with a
commercial kitchen, variety of motel units, 4 bedroom
townhouse, backpackers lodge and wonderful owner’s
accommodation with views directly to Mount Ruapehu.
INVESTMENT SUMMARY
PROPERTY FEATURES
Alpine Motel and Sassi’s Bistro is a proven performer with
opportunity for a new owner to stamp their mark on the
business and take it to new heights.
Significant six figure returns are achievable from the strong
existing client base.
Take advantage of Winter and Summer growth in this
region – this will appeal to skiers and outdoor activity
couples seeking lifestyle and income options.
$1,850,000
Freehold Going Concern For Sale (Option to Purchase Business Lease Also Available)
Home, Income and Lifestyle
17
v
v
v
v
v
Excellent mix of accommodation catering for all
types of clientele
Capable of sleeping 100 guests
Bistro well patronised by guests
Spacious grounds, massive owner storage shed
Option to purchase new 30 year lease after
discussion with the Agent
LINDSAY SANDES
Mobile: 64 21 895 940
Facsimile: 64 9 369 1100
kerikeri court motel
business lease FOR SALE - kerikeri
when location really counts
A rare opportunity to move to tropical Kerikeri and take this
well established business to the next level.
Features 15 spacious units in what must be the most
desirable position next to the central business district.
The repeat clientele is the envy of other motelliers.
This sun drenched motel is of solid construction on a
compact site with swimming pool and BBQ area.
The existing owners have maintained the chattels and
furnishings to a high standard so you can reap the rewards.
$695,000
Business Lease For Sale
Well Established Excellent Performer
INVESTMENT SUMMARY
PROPERTY FEATURES
Kerikeri benefits from a strong corporate environment
having a thriving business community and being strategically
located in the gateway to the Far North.
You will also benefit from the tourism and leisure activities
that the area has to offer.
Stop dreaming and act now to take advantage of the
high season and New Zealand’s watershed period for
international tourism.
wayne keene
Mobile: 64 21 666 991
Facsimile: 64 9 369 1100
18
v
v
v
v
v
v
v
v
Excellent financial performer
Unique central location
Strong repeat clientele
Private elevated owner’s residence, 2 bedrooms
Loyal staff
In-ground pool
Quiet off-street parking
25 year lease, expires 2027
michael osborne
Mobile: 64 272 426 881
Facsimile: 64 9 369 1100
cedar lodge
business lease FOR SALE - rotorua
don’t miss out
There is not a lot that needs to be said about this opportunity,
the price says it all. Situated on a corner site on Rotorua’s
Motel Mile, Cedar Lodge is waiting for new owners to take
this business to a new level.
Constructed in brick and cedar weather boards, this motel
is a relatively low maintenance property with 6 large studios
and 9 one/two bedroom units. All the units have spa baths,
cooktops and thermal heating.
The owner’s accommodation is a spacious 3 bedroom home
with separate kitchen, open plan lounge/dining that leads
INVESTMENT SUMMARY
PROPERTY FEATURES
out onto a private courtyard. The thermal heating ensures v
a warm comfortable environment. There is ample room to v
park a boat, excellent storage and a garage.
v
Be in and ready to take advantage of the Rugby World Cup.
v
v
$150,000
This is An Outstanding Opportunity That Will Not Last!
15 large units
3 bedroom owner’s home
Thermal heating
Long lease
Corner site
ray hart
Mobile: 64 21 33 54 88
Facsimile: 64 9 369 1100
19
ahipara holiday park
business lease for sale - ahipara
dream lifestyle and location
Ahipara is the gateway to Ninety Mile Beach and the North
Cape. The holiday park is set on 2.1 ha of park like surrounds
in a private location, just 5 minutes from the beach – and
there’s an 18 hole golf course next door!
This well established successful business enjoys high profile
branding. It has a Qualmark 3 star holiday park rating and is
a member of Kiwi Holiday Parks, Holiday Parks Association
and the Youth Hostel Association of NZ.
It would suit a hands-on couple with people skills as there is
opportunity to grow this business. This is a dream lifestyle
and location for those wanting the outdoor life.
$495,000 (or near offer)
A Well Established and Successful Business
INVESTMENT SUMMARY
PROPERTY FEATURES
The owner’s accommodation is a 1 bedroom apartment
with large outdoor entertaining decks and vegetable
gardens. There is an additional 1 bedroom cottage on site
for extended family or staff.
There are no permanent campers on the site. There are two
staff employed during the Winter for some outdoor duties
and extra casual labour in the Summer.
Horse trekking, fishing competitions - you add your own
events.
wayne keene
Mobile: 64 21 666 991
Facsimile: 64 9 369 1100
20
v
Brand new 30 year lease available
v
The park consists of tent sites, cabins, 2 bedroom
motel units and a 5 bedroom lodge
v
Small retail area for consumables for Summer trade
v
Internet kiosks, wireless coverage, quadbike and
blo kart hire, event management, tour bookings
michael osborne
Mobile: 64 272 426 881
Facsimile: 64 9 369 1100
peninsula motel
business lease FOR SALE - WHITIANGA, COROMANDEL
a “starter” in paradise
Not often do we get a profitable business such as this in a
prime resort location at entry level prices.
Easily run as a couple, and with well established clientele
you will find this a treat as either a first motel or one where
you do not want too much workload. With only 9 units in
total it is fairly easy to get excellent occupancies, especially
in peak times - in fact people book a year ahead.
Well if that’s not good enough we want you to consider
the three bedroom owner’s accommodation with attached
garage in a separate building. So often the owner’s
INVESTMENT SUMMARY
PROPERTY FEATURES
accommodation is an afterthought - not in this case - it is a
proper home.
Clean, comfortable, affordable accommodation and friendly
service is the by-line of the current owners and that’s exactly
what guests get. Spick and span and not too flash - priced
right - exactly what the real traveller is looking for in today’s
market and that is why the business prospers. Get Started in the Industry
$230,000 plus charter business if required
Great Business, Easily Run, Loyal Clientele
Spacious 3 bedroom owner’s home in separate
building
v 9 honest units comprising 4 one bedroom, 2 two
bedroom and 3 studios with spa baths
v Playground, BBQ and expansive lawns
v Fishing/diving charter business also available for
a further $299,000
v
gordon mCgregor
Mobile: 64 21 99 88 10
Facsimile: 64 9 369 1100
21
waipu cove
management rights OPPORTUNITy & associated real estate - waipu
work and play at the beach
This is your chance to make that lifestyle change with
ownership in Waipu Cove’s only true resort.
Nestled behind the white sand dunes, the resort is only 90
minutes from Auckland and just 1 minute walk from arguably
one of the north’s finest beaches. Whether it’s swimming,
fishing, surfing or diving you can experience it all and enjoy
the benefits and reward of ownership.
The Vendor is offering the business and a strategic real
estate holding that includes the reception, manager’s home
and leased premises. The business has enjoyed a good mix
of corporates, year in year out holiday makers and the ever
Expressions of Interest – Closes 20th Oct 2010
(if not sold sooner)
Vendor Will Consider A Trade
INVESTMENT SUMMARY
Photo not taken from the property
PROPERTY FEATURES
increasing free independent traveller.
Clientele enjoy an excellent standard of accommodation
and have the added benefit of the Beach House Restaurant
which is separately operated but located on site. These
two key ingredients have underwritten the goodwill of the
business and both entities have the ability for growth.
Whilst not a requirement you can also consider the adjoining
property which is currently tenanted and known as the
“general store”.
Take ownership and leave your options open on future
redevelopment.
wayne keene
Mobile: 64 21 666 991
Facsimile: 64 9 369 1100
22
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An exciting and rewarding opportunity with future
development potential and lifestyle
Strategic real estate investment
Existing management business
Includes tenanted restaurant (land & building only)
Title includes 3 apartments and adjoining reception
Owner’s accommodation is a 5 bedroom penthouse
apartment
Vendor funding may be available
michael osborne
Mobile: 64 272 426 881
Facsimile: 64 9 369 1100
victoria railway hotel
freehold going concern or new lease FOR SALE - invercargill
a national treasure!
Steeped in heritage, we are proud to offer the Victoria
Railway Hotel for sale. Situated in the heart of Invercargill
CBD, this boutique property ticks all the boxes and can still
improve on performance.
The owners have lovingly restored this hotel furbishing the
accommodation areas to more of a boutique hotel with
ensuited rooms, without losing the charm of the building.
The exterior of the hotel has been fully painted in recent
years so will not require a paint for quite a few years yet.
The 22 rooms are complemented by a bar and restaurant.
Invercargill is another success story during the recent
INVESTMENT SUMMARY
PROPERTY FEATURES
recession, holding its own in occupancy and rate - in fact
in many cases performing better than previous years’
trading history. As an area, they have invested in promoting
Southland as a destination, intending to increase the
accommodation nights spent in the region. In particular,
the opening of Stewart Island for day trips has boosted the
amount of tourists coming into town and the emergence of
the Catlins area has provided other attractions.
Those looking to make a nice living will be impressed with
the profit & loss associated with this business.
Asking Price of $1,550,000 is Supported By a Recent Valuation, But What Would You Pay?
FHGC. Vendor Also Offering a New 35 Year Lease Valued at $600,000 but is Negotiable
Will Not Disappoint on Inspection
23
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Charm and Elegance - A beautiful, restored and
modernised inner city Victorian hotel
An Invercargill icon and landmark building
Registered building, Cat. 1 NZ Historic Places Trust
Architecturally designed upgrade 2003
Continued refurbishment 2004-2010
Prestigious Invercargill City Council Environment
Award
marty easton
Mobile: 64 21 688 819
Facsimile: 64 3 366 9886
paihia pacific resort hotel
BUSINESS for sale - PAIHIA
paihia paradise found
A prime opportunity for a couple or a family to take this
business to the next level. Yes the business is being sold
based on today’s results with very real upside, this is your
opportunity to capitalise on the market and reap the benefits
of your own efforts.
This boutique resort hotel is conveniently located just 150
metres from the beach and just a short stroll to Paihia’s
town centre.
The current owners have completed significant refurbishment
inside and out and are very proud to be handing this well
presented property over. A real sense of arrival has been
INVESTMENT SUMMARY
PROPERTY FEATURES
achieved creating a perfect haven for holidays, conferences
and functions.
The resort provides a restful atmosphere with its native and
subtropical planting, its in-ground pool and poolside bar.
There is a spacious 3 bedroom apartment for the owner
opening out to decks, which won’t disappoint.
If cash flow is what you are looking for, this business can
provide for it. You will see from the accounts there is plenty
more in it for you. Trading well and enjoying the revenue of
what is probably the best Winter for a while one can’t help
but be enthusiastic about the future of this resort.
$1,000,000
Business For Sale
Approved Funding Available for Qualified Purchasers
wayne keene
Mobile: 64 21 666 991
Facsimile: 64 9 369 1100
24
35 units with ensuite, most with bath
Lounge / cocktail bar flowing out to the pool
Professional conference and meeting facilities
Extensive Stone Grill restaurant and catering
facilities - no experience required
v Attractive swimming pool / sauna / spa complex
amongst sheltered courtyard and modern gym
v Lease expires 2033
v
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michael osborne
Mobile: 64 272 426 881
Facsimile: 64 9 369 1100
kaimai view motel
business lease FOR SALE - KATIKATI, BAY OF PLENTY
neat as a pin
Picture this — a motel, the best in town, packed full of
features and at a price level most can afford. This motel
has had a solid historic performance and is now positioned
to take advantage of the economic recovery. You will be
impressed with the quality and spaciousness of the owner’s
accommodation, the generous nature of the units and
the quality of the fit out and chattels. Guests are the best
testament and they love Kaimai View Motel giving it raving
reviews on internet mediums.
Everyone talks about getting a better balance in life - seldom
do people actually achieve this goal. Kaimai View Motel
INVESTMENT SUMMARY
PROPERTY FEATURES
offers you the perfect platform in the perfect location to
make sure your sanity is kept in check.
Sun on your back, happy guests to the front and money in
your pocket with time to spend it - give it a go, come and
view at your earliest convenience. We are sure that you will
not be disappointed.
Get rid of your boss and live your life the way you dreamed
of.
$550,000
Business Lease For Sale - Easily Managed and Excellent Reputation With Repeat Customers
Difficult To Find Better So Call Now For Inspection
25
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Magic owner’s accommodation with huge front
secluded yard, 3 generous bedrooms and exception
living areas, separate motel kitchen
Appealing reception, great laundry and double
garage
14 spacious studio, one and two bedroom units
Solar heated pool
Presented in almost as-new condition
gordon mCgregor
Mobile: 64 21 99 88 10
Facsimile: 64 9 369 1100
latest website statistics
list with resort brokers to get high web profile
Resort Brokers has continued to strive towards
making it easier for prospective purchasers to
identify suitable opportunities and to gain meaningful
information in the most convenient manner. That
simply translates to more sales and better prices.
To that end our website has been updated so that
considerable information can now be downloaded
with ease even if buyers are located on the other
side of the world. The full investment reports and
other supporting information including video footage
are now available direct from our site.
We strive to make it easy to provide fully inclusive
information leaving us time to dedicate ourselves to
the “sell messages”.
We have worked hard to optimise our website and
as at 13th July 2010 the comparative ratings as
complied by Alexa, part of Amazon, were as follows:
Company
World Ranking
Resort Brokers
3,065,339
Tourism Properties
4,165,332
John Griffin Realty
24,467,543
Geoff Hill Real Estate
19,304,910
Coffeys
6,939,114
CB Richard Ellis
4,648,245
Colliers
1,950,490
Jones Lang LaSalle
1,483,912
Clearly our website has more traffic and is more
popular than any of the national real estate
companies in New Zealand.
Now the results based on the average number of
pages viewed, reflecting how many pages people
view on the respective sites, were as follows for the
previous month:
Company
Pages
Viewed
Resort Brokers
13.0
Tourism Properties
1.3
John Griffin Realty
1.0
Geoff Hill Real Estate
No Data
Coffeys
2.0
CB Richard Ellis
4.0
Colliers
3.0
Jones Lang LaSalle
1.6
Here it is clear that the higher number the better. A
higher number shows that people are interested in
the site content and have a good scroll around and
traditionally we seen an average page of between 10
and 15.
Thus you can see that our website is extremely
effective and is very focused on people who have a
desire to invest in tourism and hospitality product.
Therefore when the website exposure is married up
with the other marketing mediums adopted, Resort
Brokers is able to offer a considerable comparative
advantage.
26
Website exposure has two main attributes, namely:
1. More people surfing internet for opportunities.
Parties interested in securing such assets may
search the net initially to view offerings without
the need to deal with a real estate agent. We
have ensured that our website is vibrant,
database driven and provides ample information
for buyers to consider.
2 As an adjunct to the other marketing mediums
All other advertising mediums also direct buyers
to our website as an alternative to dealing with
us by telephone in the first instance. This less
threatening approach has proved invaluable
and many parties have requested a CD ROM
and viewed all the content prior to making
direct personal contact with us. The process
is transparent and we are able to monitor all
aspects, step in when appropriate, and reinforce
our “sell messages”.
gables motor lodge
business FOR SALE - greymouth
stop looking and start reading
Are you looking for a good thriving business, where the
maintenance is all up to date and the units are constantly
being refurbished to meet demand? Great, stop looking and
start reading, because it’s right here!
This is a very well run business and would suit someone
looking for a different kind of lifestyle that would enable
them to enjoy some time off in the mid afternoon. Ideally a
couple where one can stay around for the phones etc. giving
the other some time to play golf, fish or enjoy some of the
crafts in the area. You could even work the whitebait season
as an additional income for the three month season, as this
INVESTMENT SUMMARY
PROPERTY FEATURES
delicacy is abundant on the West Coast from September to
November.
Greymouth is the largest town on the West Coast and enjoys
good occupancy year round. This is one of the most buoyant
tourism areas in NZ, being steeped in history. Greymouth
is the gateway to Karamea to the north and the glaciers to
the south, providing the entire infrastructure for travellers
moving up and down the coast, benefiting from its central
location. The Pancake Rocks at Punakaiki are also close by,
which never disappoints photographers with breathtaking
scenery that is so dramatic.
$650,000
Business For Sale
Don’t Hesitate to Enquire About This Motel as it Won’t Disappoint
25 year lease from date of possession
12 modern ground floor units
20% return on investment
Modern 3 bedroom owner’s residence, separate
from motel units
v 4 star plus property rating
v Wide street frontage adding instant appeal for
passing trade
v
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v
v
marty easton
Mobile: 64 21 688 819
Facsimile: 64 3 366 9886
27
best western looking to woo nz motelliers
Best Western is planning to expand in New Zealand with an aggressive brand
development strategy planned for the coming year, headed by former All-Black Grant
Batty who is based on the Gold Coast, Australia.
Grant joined Best Western Australasia in 2009. He remains a respected sporting
commentator and rugby coach after representing his country on 56 occasions from
1972 to 1977.
If you would like to arrange an appointment with Grant, or if you would
like any further information, please call +61 412 289 594,
or email [email protected]
Your local partner in a global brand
In his role as Business Development Manager for Best Western Australasia, Grant
aims to increase the brand presence in New Zealand. Best Western currently has 13
branded properties spread throughout the North and South Islands.
Grant says, “Best Western is a highly regarded, globally-recognised brand which
provides outstanding customer service. Joining Best Western helps accommodation
owners grow their businesses.”
“Members benefit from many services including access to national and global
markets through sales and marketing assistance, loyalty programmes and dedicated
sales channels”.
Personally, he is delighted to be “working with good people who offer a superior
product under an industry leading brand”.
Grant also believes that the industry needs to constantly remind itself that “after
cleanliness the most important concern for the accommodation owner is the “front
desk” performance. If the front desk performance is genuinely enthusiastic and
genuinely professional it will create an opportunity - an opportunity for the guest to
be converted into a supporter of your business”.
“Best Western is re-building in New Zealand and we’re only recruiting quality
properties. The brand is working for our current members and accordingly we’re
now looking to expand the network across the country”.
Grant will be in New Zealand in September and November to talk to motelliers about
the benefits of joining the Best Western brand.
28
A great fit for your property
Bringing a world of customers to you:
-
Increased consumer awareness
New bookings
Repeat business
Loyal customer network
- Industry training programs
- Increased purchasing power
- On-call expert advice & support
More information
Grant Batty - T +61 (0) 412 289 594 | E: [email protected]
Web: www.BestWestern.com.au | F +61 2 9955 9555
specialists to the industry
join the
resort brokers
team
MOTEL LEASES & FREEHOLDS
Contact us for personal
legal assistance
We have over 30 years experience
in this specialised area of law
John Armstrong
Hugh Hamilton
Phone: 06 858 6660 Fax: 06 858 8481
Postal: PO Box 54, Waipukurau
www.daclegal.co.nz
resort brokers seek sales people to specialise in
transacting motel and hospitality businesses.
Our property and commercial teams
have specialist expertise in:
Full support will be offered to grow your profile as
part of new Zealand’s largest and most successful
specialist brokerage team.
• Management rights
• Unit (strata) title
developments
• Motel and hotel leases
• Property transactions leasehold and freehold
• Business sales and
purchases
as remuneration is based on your efforts you
should be self motivated, prepared to learn
quickly and hungry for sales.
You will be required to travel on a regular basis to
service clients within the territory to which you will
be assigned.
someone who is prepared to do the basics
with some selling skills can earn in excess of
$100,000 per annum.
Contact: Kevin Martin
[email protected]
Telephone: 64 9 379 9077
Fascimile: 64 9 379 9155
DX CP20504
PO Box 114, Auckland
www.morgancoakle.co.nz
oFFices in auckland and christchurch
For More InForMatIon:
call Wayne keene on 021 666 991,
or email [email protected]
12th Floor
WHK Tower
51 - 53 Shortland Street
Auckland
New Zealand
ADVERTISING WITH US
If you wish to advertise in this section please contact Cheryl Dwyer
on 64 9 369 9708 or [email protected]
29
Need serious funding advice?
FREEHOLDS, LEASEHOLDS, GOING CONCERNS, MANAGEMENT RIGHTS, NEW DEVELOPMENTS
When it comes to funding tourism related properties and businesses, our
expert knowledge and experience in sourcing funding packages will provide
you with tangible results. We are committed to providing clients with a
superior independent service through a performance based fee structure.
Call us today to learn more about the Strata Funding approach. We’ll create
the funding solution that really meets your needs.
AUCKLAND 0-9-360 5252
RB2304
HAMILTON 0-7-834 2030
ADVERTISING WITH US
If you wish to advertise in this section please contact Cheryl Dwyer
on 64 9 369 9708 or [email protected]
www.stratafunding.co.nz
30
- we've got them all covered
The Sunday Star-Times offers you the opportunity
to put your listing in front of readers who are
seriously thinking about commercial
property investment or lease.
FOR BOOKINGS CONTACT:
Tendai Chaitika
Sunday Star-Times
Ddi (09) 925 9787 Mob 0274 805 176
[email protected]
OR
L
AL
Cheryl Dwyer
Resort Brokers
Ddi (09) 369 9708
[email protected]
*Source: Nielsen MR: National Readership Survey Q3 09 - Q2 10 average issue readership
31
AL
LOC
GIO N
E
R
NATIONAL,
REGIONAL
LOCAL
NATIONA
On a typical weekend 554,000
New Zealanders read the
Sunday Star-Times*
®
NewZealandTourismBrokersLimited MREINZ
the tourisminformer
specialist tourism and hospitality brokers
resort brokers SALES TEAM
GORDON MCGREGOR
Mobile: 64 21 99 88 10
Facsimile: 64 9 369 1100
BRENT HANNAH
Mobile: 64 21 359 678
Facsimile: 64 6 835 9899
LINDSAY SANDES
Mobile: 64 21 895 940
Facsimile: 64 9 369 1100
office information
AUCKLAND OFFICE
Tel: 64 9 369 1101
Facsimile: 64 9 369 1100
Physical Address: Level 8, The
General Building, 33 Shortland
Street, Auckland
WAYNE KEENE
Mobile: 64 21 666 991
Facsimile: 64 9 369 1100
RAY HART
Mobile: 64 21 33 54 88
Facsimile: 64 9 369 1100
marty easton
Mobile: 64 21 688 819
Facsimile: 64 3 366 9886
Postal: PO Box 1191, Auckland
CHERYL DWYER
DDI: 64 9 369 9704
Mob: 64 21 237 9074
Email:
[email protected]
CHRISTCHURCH OFFICE
john ferguson
Mobile: 64 21 546 430
Facsimile: 64 6 867 4099
michael osborne
Mobile: 64 272 426 881
Facsimile: 64 9 369 1100
murray stott
Mobile: 64 21 0231 2796
Facsimile: 64 9 369 1100
Tel: 64 3 366 7667
Facsimile: 64 3 366 9886
Physical Address: Level 3,
103-105 Worcester Street,
Christchurch
Postal: PO Box 2093, Christchurch
Disclaimer: We do not accept responsibility for mis-statement or error contained in this brochure. Interested persons should rely on their own enquiry. All prices are plus GST if any unless otherwise stated

Spring 10 Informer

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