Tourism Property is proud to exclusively offer this classic FREEHOLD motel for sale – beachside in the Wollongong CBD.
An unrivalled hotel re-development opportunity with significant holding income.
*** Stop the Press *** We’re Under Contract 23.02.2023
One of Australia’s premier regional cities, Wollongong is just 60 minutes drive south from Sydney International Airport.
Is this the last opportunity to build a hotel or serviced apartment complex in this major coastal city?
Property Highlights:
- 10%+ ROI holding income under management
- Beachside hotel re-development opportunity
- 32 metre height limit; no gazetted FSR
Tourism Property are exclusive agents for the sale of this classic freehold motel – it’s a genuine “stroll to beach” location, with the huge bonus of also being on the eastern edge of the Wollongong CBD.
Please note that residential and general commercial development is not permitted under the current SP3 Tourist zoning. This zoning restriction is designed to facilitate and encourage new hotel development and absolutely means this site is priced well below the surrounding properties that enjoy standard residential and commercial zonings.
Neighbouring residential apartments are selling at up to $20,000 per square metre – owing to the premium location and ocean views.
Tremendous holding income:
The existing and ongoing income is extremely strong from the current continuing operation. The onsite management couple are doing very well and are keen to stay on.
Bank the significant income while planning your hotel re-development.
Re-development:
Expected hotel development yield of between 60 and 100 keys, depending on configuration, STCA. Unobstructed ocean views from level 4 and above.
We have a long list of hotel operators and potential tenants itching to get into a new hotel in the Wollongong market.
Land size is circa 725 square metres, absolutely dead flat, with a 32 metre height limit permitted and no prescribed floor space ratio (FSR).
Wollongong Hotel Market:
The Wollongong hotel market remains extremely strong, with burgeoning average room rates and very high occupancy across the ~1,000 hotel and motel rooms in the Wollongong local government area.
The hotel development pipeline is extremely limited – with Wollongong CBD land values continuing to be a barrier to entry for new hotel developments.
Wollongong is expected to lose over 30% of it’s existing motel rooms to residential and commercial re-development in the coming years.
Property Details:
Less than 20 rooms with an almost unbelievable RevPAR – please call to discuss the existing business.
Three storey block and metal roof building, which is well maintained. Approximately 40 square metre studio style rooms, which are dated, yet spacious and kept extremely clean. Each studio offers a kitchenette and full bathroom, new split system Air-Conditioning and tidy furnishings throughout.
The manager’s residence is a neat, well kept one bedroom unit, adjoining reception with a screened private courtyard.
A freshened up reception area offers a computerised reception and security camera system.
On grade car parking and both commercial and guest laundries complete the picture.
Financials:
Qualified buyers will have access to an extensive range of financial and operational reports, including accountant prepared Profit & Loss statements.
The income scale is well and truly sufficient to support a management structure, circa 10%+ under management
Opportunities:
- Retain the existing managers to live onsite and enjoy the very solid existing profit
- Take residence yourself and continue this easy to run business
- Lease the property to achieve an immediate passive investment – we have experienced motel tenants waiting
Our very long term owner of the property is ready to retire and seeks a genuine sale.
Please call to discuss and book your discreet inspection.
Inspections are ONLY available when accompanied by the agent and require a minimum of 48 hours notice – please call to discuss your interest and purchasing credentials.
More Information:
An information memorandum has been prepared and will be provided to qualified purchasers.
Please call exclusive agent Graeme Sutherland at Tourism Property to discuss your next move.
To register as a buyer, click here.
You will need to return the confidentiality agreement in order to receive further information on this property.
Listing Agent
Graeme Sutherland, MBA (Exec)
Business & Property Broker
Mobile: 0402 030 371
