Manageable motel ideal for newbies to the business
by Colin Taylor The lease of a 13- unit Rotorua motel complex which has recently undergone a major refurbishment is being marketed for sale for an asking price of $ 357,000 plus GST.
‘‘ This new 30- year lease of a motel in a popular tourism centre is an ideal entry opportunity for prospective purchasers who are new to the industry, like a young couple wanting to own a manageable hospitality business or even a new immigrant,’’ says business broker Darcy Snowden of Christopher Brown & Associates in Auckland.
‘‘ It could also appeal to someone who has operated a large motel complex and is now considering one that’s a little less busy, and easily managed,’’ Snowden says.
The ‘‘ immaculately presented’’ Victoria Lodge motel business at 10 Victoria St, Rotorua, comprises a mix of nine studio units sleeping two to three guests and four two- bedroom self- contained apartments enabling it to cater to individuals, couples and families.
‘‘ While we are selling the business, the vendors also own the land and buildings and would consider selling the complex as a freehold business and property going concern if a pro- spective purchaser preferred,’’ says Snowden.
‘‘ Being situated on the corner of Victoria and Toko Sts, one street off the main thoroughfare of Fenton St, Victoria Lodge offers its customers a very quiet stay but with the convenience of being only a few minutes’ walk to the Rotorua CBD with all its restaurants, cafes and shopping.’’
He says in the last three years the vendors have worked very hard and invested thousands of dollars renovating.
‘‘ As a result, the presentation is stunning and one a new owner will be proud of when showing guests to their rooms.’’
To meet the demands of modern technology Wi- Fi is available throughout the complex and is hard- wired in for stability.
Each studio unit has tea and coffee making facilities and is fitted with a new bathroom vanity and mixer tap.
The showers are tiled with new shower mixers, dual flush toilet cisterns and have ‘‘ revamped’’ thermally heated, private, outdoor hot pools.
The apartment rooms have also been refurbished with new furniture and fixtures, bedding and TVs and are the size of an average large apartment, Snowden says.
Each apartment has its own kitchen, downstairs dining area and lounge, two double bedrooms and a bathroom upstairs. They also feature a spa bath and separate shower in the bathroom along with a vanity and toilet.
In addition to a large HDTV in the lounge bedrooms in the apartment units also have a stereo system and DVD player.
Two apartments have decks accessed from an upstairs bedroom that look over a pleasant grassed area with outdoor furniture and mature trees.
‘‘ To ensure quality and longevity was never compromised, the interior has been very tastefully decorated using only top quality paints, Maurice Kain fabric duvet covers and drapes, bespoke lampshades, high quality furniture and bedding, and hard wearing commercial grade Axminster carpet,’’ Snowden says.
‘‘ Big- screen wall- mounted TVs provide guests with the choice of 50- plus channels via Sky Guest Select.
‘‘ The apartments are ideal for a family, two couples or a small group and are popular with people transferred to Rotorua for work,’’ Snowden says. Off- street car parking is provided for each unit within the complex.
Victoria Lodge achieves significant cost savings through having its own thermal bore on the property which provides hot water and heating to all rooms and the manager’s residence.
Another major cost saving is having its own laundry with two commercial washing machines undertaking the washing and radiators used for drying. Guests have the use of a separate laundry with a washing machine and drier for which a small charge is made.
In a motel, the owners’ accommodation is very important and Victoria Lodge has a two- bedroom dwelling attached to the complex with a ground living area including a galley- styled kitchen that is for personal use as well as preparing guests’ breakfasts when required.
Snowden says motel ownership offers a lifestyle unlike most other businesses, in that it provides a number of advantages including no travel to and from work, plus on- site living and financial benefits.
‘‘ This is certainly a financially viable business based in a world famous tourist destination known for its thermal wonders, Maori cultural activities, trout fishing in numerous lakes, forest walks and numerous other attractions that draw many special interest groups and sports teams.