Dunedin’s Quest franchise up for grabs
A serviced apartment hotel business in Dunedin has been placed on the market for sale with a fixed price of $1.175 million.
Lindsay Sandes, of LINK Business Brokers, says the Quest accommodation business at Cumberland Street was developed by Arrow International specifically for apartment hotel accommodation.
The 1012m2 site had been identified as a primary hotel development site in 2006 and is within walking distance to the university, the Octagon, hospital, railway station, retail precinct and cafes and bars.
Quest Dunedin is predominantly used by corporate travellers, Sandes says, with business guests making up 70% of customers.
Sandes says potential need not have a track record in the accommodation sector. “While prior accommodation specific experience is not required, a willingness to learn and embrace Quests' franchise system and manage and work in the accommodation service sector is paramount.
“People skills, communication skills and management experience will provide a solid platform to growth in this vibrant franchise accommodation industry.”
The building was purpose built for a Quest serviced apartment hotel business and completed in 2007. The complex consists of two levels, plus ground level. 42 studio and 1 bedroom apartments plus 26 car parks featuring hush glass, concrete slab and sound proofing between the apartments saw opening occupancies spring to +70% from opening .
The Quest Dunedin business has been built up over the past decade to be one of the leading occupancy hotels in the region. It has come thru the pandemic in good shape, not closing during the three month lock down, and reaching a fair rent compromise with the landlord during that time, which allowed us to retain all our staff and customer confidence. Since mid-year our occupancy has been nearly double the town occupancy, and the opportunity to improve the business to the bottom line is there for the enthusiastic owner manager.
Sandes says: “The property is part of the Quest franchise system, the premier accommodation franchise in the Australasian area, and it is still growing. It gives both referral advantages over independent hotels, and industry leading system and management support.”
The property has been refurbished regularly over its 12-year life, by both landlord and operator, and is an ideal turn key operation for a new owner operator. Major refurbishment is the responsibility of the landlord, and is imbedded in the lease conditions.
“The sale of Quest Dunedin business is a difficult one for the current owners, but with distance and age as barriers that are getting harder to overcome. As Australian-based owners, they have been unable to give the business the day to day attention it deserves, particularly now with travel restrictions,” says Sandes.
Contact: Lindsay Sandes, LINK Business Brokers, 021 895 940