The sale of a Sunshine Coast motel with tropical gardens, an onsite residence and approval to grow is being described as an opportunity “that doesn’t come along very often”.
Located on 4265sqm, the motel turns over a “healthy profit” and includes a variety of rooms and amenities.
Known as Buderim Fiesta Motel, the property was built in the 1980s and attracts return guests annually due to its close proximity to the coast, hinterland and Bruce Highway.
The property at 308 Tanawha Tourist Drive, Tanawha, features seven well-appointed motel rooms and two self-managed rooms.
Motel amenities include a swimming pool and barbecue area, and off-street parking.
The owner-operated motel also features a fully renovated home with three bedrooms, open-plan kitchen/lounge area, bathrooms and outdoor entertaining space.
A development application to Sunshine Coast Council was also approved in November 2018 to extend the motel by adding five more rooms.
With high occupancy rates, the business has a projected annual profit of $465,000 for this financial year and represents a return on investment of 14 per cent.
Tourism Brokers sales executive Richard O’Connell said it was rare to come across a “classic motel” on the Sunshine Coast and it was an opportunity not to miss.
“The Sunshine Coast really is running out of motels for sale,” he told Sunshine Coast News.
“Anything that was a classic hotel had been converted to a tower building or redevelopment, and most of the accommodation is now in apartments.”
Rooms range from $119 to $265 per night and Mr O’Connell said its location suited those who needed to stay on the Sunshine Coast but did not need to be near the beach.
“It’s a small motel but it does very well,” Mr O’Connell said.
“The motel is full every weekend and during the week it is often used by contract workers who can park their bigger vehicles and can jump straight on the highway.”
He said the current development application was only part of the long-term potential for the property.
“The big bonus with this (property) is its development potential,” he said.
“There is a development approval for an additional five rooms, which is what I would call stage one.
“But as residential development is slowly coming down the road, the long-term potential for this property is endless really.”
Mr O’Connell said the motel was a “simple operation” and believed it would suit a family or couple looking to invest in the property, live on site and run the business.
“The people we think will be interested in it will be where the husband and wife can run the property, perhaps they have children, and it’s a great investment for them moving forward.
“They can either do the development work themselves or just land bank it with a really solid income coming in.
“We’re showing what we call an adjusted net profit of close to $450,000 a year. That’s two good salaries.”
Since 2020 the motel rooms have all undergone improvements, including fresh paint and new flooring, new air conditioning units, furniture, beds and linen, plus a rendered and painted exterior and new roof.
Buderim Fiesta Motel is listed for $3.28 million and is being described as a walk in, walk out opportunity.
For more information visit Tourism Brokers.
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