AUSTRALIA’S BEST ACCOMMODATION INVESTMENT SHOWCASE 97_low res.… · Tumbarumba Motel is an established, well-run business that offers solid returns and an ideal lifestyle for an

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INFORMER ISSUE N O. 97

AUSTRALIA’S BESTACCOMMODATION

INVESTMENT SHOWCASE

RESORTBROKERS.COM.AU_ISSUE N O. 972

ISSUE NO. 97_RESORTBROKERS.COM.AU 3

The recovery is underway as businesses look to rebuild, with a little bit of help

A F T E R T H EB U S H F I R E S

72RELIEF MANAGERS

Taking a holiday? Need a manager? Find one here

AGENT PROFILE

We find out what makes our Victoria Specialist Damon Lunardello tick

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71SOLD PROPERTIES

See some of the properties ResortBrokers has sold recently

74MEET OUR TEAM

ResortBrokers' national directory

53MARKET ACTIONOur regional sales have dominated with North Queensland and Geelong in the spotlight

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B O U T I Q U EG O E S R E G I O N A L

It’s not just city properties that are embracing design innovation

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34C R Y S T A L B R O O KC O L L E C T I O N

The emerging design driven hotel group that’s rapidly expanding In Australia and NZ

58R E G I O N A L P R O F I L E

Greg James outlines how northern NSW is going after drought, then bushfires

14D I V E R S I F Y O R P E R I S H

We take a look at how an Outback business is adding to its bottom line

ISSUE N O. 97inside...

R E G U L A R F E A T U R E S

22T H E F U T U R E O F H O T E L D E S I G N

How hotel design and trends are being driven by consumer demand

60on the marketManaging Director Trudy Crooks on bushfires, coronavirus and the need for perspective

Cover Image - The Fantauzzo Hotel, Brisbane


try not to hark back to the good old days too often, but remember when you’d stay

in a motel and you could make an instant coffee from a sachet on a tiny table with a single chair. The shower also had sachets containing tiny little bits of soap and a plastic shower curtain provided a mild sense of modesty.

It was a lot of fun then but, these days, such quirky little touches are usually not seen as charming or quaint. It’s more likely to result in negative social media reviews which can actually have a serious effect on your bottom line.

Our main theme in this edition

of Informer is “The Future of Hotel Design” and this has been inspired by the rapidly changing accommodation landscape which has undergone a major evolution over the past two decades.

Design is constantly changing because people always have new ideas about how they want to experience their life. This includes the food they eat, the clothes they wear, the car they drive, the house they live in, the electronics they use and of course, the hotel they visit.

We take a look at one property that really captures all of this is.

The Fantauzzo is an amazing new hotel built into the cliff right under the Story Bridge in Brisbane and original artworks adorn the interiors - this place has to be seen to be believed.

Speaking of fantastic properties our hotel profile features the Crystalbrook Collection, a relative newcomer in the industry with six completely different boutique hotels either operating or about to open. Crystalbrook has really captured the essence of innovative design and the group is undergoing a pretty rapid expansion in Australia and New Zealand.

After one of the worst bushfire

events in Australia’s history, we also try and find the positives out of this devastating event. With so many lives lost and the widespread destruction of towns, wildlife and bushland, the recovery on all levels will take some time.

We’ve identified some grassroots campaigns which are designed to encourage Australians to get back to the impacted areas and help those communities. This is a sentiment that’s been echoed by Accommodation Association of Australia CEO Dean Long, who is featured in our Faces of the Industry section.

Now, I’ve got some earrings on my desk which have come from Curtin Springs, a cattle station in central Australia which has diversified into accommodation and tourism. Talk about multi-tasking - they’ve also added the production of paper and jewellery to boost their bottom line and these guys highlight just how important it is to look to different ways to earn income through your business to help ride out the inevitable highs and lows.

The earrings are very pretty but they’re a bit dangly and “out there” for me. I might hand them off to my daughter Trudy who will carry them off with style!

Speaking of Trudy, her On The Market column reveals an interesting insight into the accommodation market. Despite the effects of the bushfires and the coronavirus, demand for accommodation businesses remains high which goes against all logic right now. Despite the setbacks, I think people realise that the accommodation industry is a solid investment that will naturally go through the ups and downs.

A point I’d like to add to this is that with the Australian dollar at almost record low levels, and the coronavirus keeping Aussies at home, the loss of international visitors will be more than offset by a boost in local tourism. I think this is especially so when you add in the big marketing push for Australians to holiday at home and support the bushfire hit regions.

We’ve also highlighted some of

WELCOME TO THIS EDITION OF INFORMER WHERE WE FOCUS ON HOTEL DESIGN AND BUSHFIRES RECOVERY

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GOOD DESIGN Is Good Business

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“The industry is undergoing its largest and most dynamic era of growth. This growth is promoting a comprehensive re-generation of its hotel product, with new lifestyle and boutique hotels reflecting the changing traveller demographics.”

TOURISM ACCOMMODATION AUSTRALIA

the best leasehold businesses that we have on our books and these are in some really great regional areas. Without going too big on the hard sell, these are all in fantastic lifestyle locations and check out the ROI on these businesses – if I was 20 years younger etc.

In the last few weeks, we’ve also had the pleasure of welcoming three new starters with ResortBrokers – Jeff Keast and Jake Crooks (no relation!) have joined our Brisbane management rights team while Grant Sulzberger is on the road for us in central Queensland. Our highly successful far North Queensland specialist, Chenoa Daniel, is now firmly embedded on the Sunshine Coast after three years in the deep north with us.

Chenoa and the highly experienced Glenn Millar will form a dynamic duo on the Sunshine Coast and we’re really looking forward to watching how they transform their patch.

Finally, one issue which has become especially relevant in the management rights industry is that of body corporate consent and how this is no longer a “tick a box” move in the sales process. Our Gold Coast Specialist, Steve Campbell, himself a former very successful management rights operator, explains why our deals don’t fall over at consent stage.

Okay, that’s enough from me. I’m putting on my cravat and heading off to The Fantauzzo, where I’m going to pretend to know what all the pieces of artwork actually mean! [END]


The Tumbarumba Motel offers the astute investor a great opportunity to take over this successful family-run business. The establishment has an excellent reputation for quality accommodation in a quiet location matched by high quality service to its guests.

With a AAA four-star rating, the motel is set in beautifully manicured grounds with stunning vistas of the region and Snowy Mountains. Its 31 suites are in excellent condition and are noted for cleanliness and comfort by guests. Also on site is the award-winning Elm Restaurant, a commercial kitchen and private conference/function room as well as a bar and wine lounge.

The restaurant seats 80 people, is open for guests and local business, and boasts fantastic cuisine and service. The Elm Restaurant has a reputation as a culinary jewel in the region’s food and wine crown. The property is located next to a winery and, with open cellar doors in the region, the growing food and wine tourism trend is a marketing opportunity for the motel.

Tumbarumba Motel is an established, well-run business that offers solid returns and an ideal lifestyle for an active family or couple in a pristine mountain environment .

NET PROFIT: $195,631TURNOVER: $875,066PRICE: $650,000

T U M B A R U M B A

J A S O N P O R T E O U S B R O K E R

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ESTABLISHED AND WELL-MAINTAINED MOTEL LEASEHOLD IN TUMBARUMBA

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› Immaculate AAA four-star 31 room motel › Dual street frontage › Conference and function facilities › Award winning Elm Restaurant, bar and

commercial kitchen › Consistent year-on-year growth › Opportunity to expand the business with

conferences, weddings and events › Room for growth, currently not listed on any

booking websites › Land and building can also be purchased

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Allure Chevron Island is an outstanding business-only, permanent management rights opportunity. Set to become a striking architectural landmark, it is situated in one of the Gold Coast’s most dynamic and prestigious suburbs.

Rising 17 levels, it will comprise 95 exquisitely finished apartments with a wide selection of two and three bedroom floorplans. It has access to diverse amenity, key attractions, pristine beaches and major commercial and cultural hubs.

Soon to commence construction, it will offer a range of superior on-site facilities including stunning lobby with dedicated reception and back of house area, private resident’s lounge, a sub-tropical courtyard garden and gymnasium. Topping it off is a sublime infinity pool, sun deck, lounge and covered BBQ area on the rooftop, boasting panoramic skyline views of Surfers Paradise, the Nerang River and the hinterland.

Chevron Island is an outstanding growth location on the Gold Coast, attracting higher rental price points due to limited new stock and proximity to employment centres and access to diverse amenity.

NET PROFIT: $277,971MANAGER’S UNIT: $695,000BUSINESS PRICE: $1,350,000PRICE: $2,045,000

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A L E X C O O K D I R E C T O R

BUSINESS-ONLY, OFF THE PLAN ON CHEVRON ISLAND – $270K+ PROJECTED NET


› Permanent, business-only opportunity › Manager’s operating spaces under exclusive use › Brand new 25 year agreements › No requirement to live on-site › Solid projected net profit over $270K with $125K

Body Corporate salary component › Walk to attractions and recreation - HOTA, golf

and turf clubs, beaches, G:Link, bus and cafes › Soon to commence construction

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Suitable for first time operators, or those with experience but looking for a business that won't keep you working around the clock, this business has it all. The current operators have done all the hard work and have negotiated brand new 25 year agreements with the Body Corporate (22 years remaining).

There are no set office hours in the agreements giving you great flexibility. Being just one minute walk to the beach many guests book at this resort based on location alone. The resort facilities of heated pool, spa and BBQ area are excellent and easily maintained. The business can be run by one person alone.

The renovated, stylish and modern manager’s residence with an extra-large exterior courtyard is the perfect space to relax and unwind. The apartment is attached to reception giving you the convenience of being able to prepare dinner or watch that last episode on Netflix, whilst keeping an eye on reception waiting for that last check in.

Broadbeach is the place to be on the Gold Coast right now. If you are looking for that next stage in life and a business that has it all an inspection here will certainly impress. NET PROFIT: $200,714

PRICE: $1,660,000

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THIS ONE REALLY DOES TICK ALL THE BOXES!

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› Tastefully renovated two bed, two bath manager’s apartment

› Large exterior courtyard wraps around apartment › No set office hours › Stroll to the beach and all that Broadbeach

has to offer › Long term remaining on agreements › Co-operative Body Corporate Committee › Office on title › Easily maintainable complex presents beautifully

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Beach Court Holiday Villas is the ideal family business opportunity. The complex comprises of 27 residential units plus the manager’s unit, of which 16 are currently let by the manager.

Beach Court Holiday Villas offers two bedroom, two bathroom and three bedroom, two bathroom fully self-contained extra-large holiday villas, plus an incredible top floor three bedroom, two bathroom fully self-contained villa penthouse. All villas feature wi-fi, Foxtel, undercover parking, large open-plan living and dining with expansive balconies overlooking lush tropical gardens.

The manager’s unit is a three bedroom, two bathroom unit on the ground floor, ideal for the family or offering additional space for a couple. The residence is fully air-conditioned and screened and reception is within ease of access to the manager’s unit.

Airlie Beach is fast becoming a popular tourist destination with the location of Beach Court Holiday Villas just 200m to Cannonvale Beach and seafront. A seaside boardwalk from Cannonvale Beach you will find the resort village of Airlie Beach, the gateway to the Whitsundays.

NET PROFIT: $263,842 (INCLUDING BC REMUNERATION)

PRICE: $1,200,000

A I R L I E B E A C H

D E S F A G G B R O K E R

BEACH COURT HOLIDAY VILLAS IS A BOARDWALK INTO THE POPULAR HUB OF AIRLIE BEACH


› Well positioned complex in a great location › Increased trading with exceptional high season › Lifestyle business › Experienced staff to assist with transition › Large net profit › Close to schools and major shopping centre

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FACES OF THE INDUSTRY: WE MEET THE AAOA’S NEW CEO, DEAN LONG, AS HE DEALS WITH THE FALLOUT FROM THE 2019-20 BUSHFIRES & CORONAVIRUS


Dean Longt was his first trip on a plane, and one of his earliest memories, that provided

Dean Long with a deep seated love of travel and tourism that ultimately led to his appointment as CEO of the Accommodation Association of Australia (AAoA) in 2019.

“I was about four years old and my parents took me on a trip and from memory we were on an Ansett flight and the whole thing was very exciting,” Long recalls.

“In my head the memory is just getting on a plane and being in this tin tube that travels at hundreds of kilometres an hour and can fly. And ever since then I've been absolutely amazed and fascinated by the aviation industry.”

Now a self-described “aviation geek”, Dean and his wife regularly join the plane spotting crew at Shep’s Mound lookout near Sydney Airport from where he says he can often tell the make of an aircraft from its engine sound.

Long’s professional background now includes more than a decade of providing advice to Governments around Australia and the business sectors and, prior to joining the AAoA , he was a Senior Adviser in the NSW Government, Head of Public Policy for the Australian Federation of Travel Agents and the National Manager of Government Acquisition (merchant services) for American Express.

These varied roles equipped him with invaluable experience into the inner “workings” of government and the private sector but he says he knew he was always going to be drawn back to the tourism industry.

“Taking on this new role was a way

to give back to the tourism industry and really provide a new approach to how we engage with government and how we get them to truly recognise the economic importance of the sector.

“I guess my current role is very much to make sure that the industry is truly represented across government and non-government stakeholders.

“It’s also about working with government people about making sure the regulatory settings are right. So it's very much about making sure the industry has a strong leadership voice on the issues that affect us as a collective.”

His time spent as a lobbyist and government adviser also served to remind him that he genuinely missed working in the tourism sector.

“One of the things when you step out of the tourism industry, even for a short period of time, is that you miss the people and the collaborative method, the commitment to supporting one another through hard times and good times.

“You don't get that in most other sectors. And so it's unique in that you're bound to that collegial nature where people stay in the industry for 20, sometimes 30 years.”

As you’d expect, one of the biggest challenges facing the AAoA this year is the impact of the 2019/20 Australian bushfires which devastated large parts of the country, causing not just loss of life and heartbreak for communities but also a major economic hit for the industry as a whole.

There have been attempts to put a dollar figure on the potential economic impact on the accommodation industry, but Long says there are too many variables to be able to do that with any

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Now is the time to visit regional Australia to show support


accuracy.“Well, we definitely know there

was impact. There's no doubt about that,” he said.

“We've got some figures in hand, but one of the things we like to do is make sure we use numbers that are accurate.

“We know there's been a drop in revenue for the industry. We know there's been a drop in occupancy. It varies. So saying a single number actually really doesn't help.”

One thing is certain, though, is that the Federal Government has allocated a subsidy of $76 million to encourage Australians to travel into regional areas to boost the local economies.

“This has been an absolute positive. There were a few people

being a little bit critical of the government response rate.

“I've worked as a public servant, I've worked as a political advisor, and if someone said to me that the Federal Government could turn around a support package for $76 million within a 10 day period, to me really showed the government had, at the centre of its thinking, how important the tourism industry was to these regional communities.”

Dean Long says his affinity with the tourism and accommodation sector is borne out of a respect for operators who have, in the face of regular adversity, shown an impressive degree of resilience.

“I think that's the one thing that sets this industry apart from every other industry, it is the fact that we do operate in an environment with

high fluctuations.“There's good times and bad times

and okay times. And during the good times, life's wonderful and dandy.

“But even during the bad times we have to get on, we still have to service our guests, we still have to make sure our corporate clients are looked after, and we need to make sure that our major clients are looked after.

“So, as a sector, I've been amazed at the speed of which we process refunds for customers, got back on the horse and started marketing as a collective.

“It's fantastic to see. So getting on with the job and making sure that we don't go out of business has been really heartening to see.”

Long has also thrown his support behind the campaigns to encourage

Australians to support the bushfire-hit regions of the country by taking holidays “at home”.

“I was down on the south coast of NSW recently and there was bushfire damage, which is both heartbreaking and devastating at the same time.

“Yet, literally just 70 metres away is lush forest where it looks as though nothing has happened.

“On Kangaroo Island, which was one of the worst hit areas in Australia, around two thirds of the island was actually untouched by bushfires.

“My message is go and see these places and share it on social media. Let others know what’s happening and accommodation operators, let guests have free Wi-Fi and encourage them to share on social media.” [END]

“Take a holiday at home. Go and see these places and share it on social media. Let others know

what’s happening."

“Cybercrime costs the economy up to $1b … and can

lead to damage to personal identity,

reputation and loss of business opportunities.”

ybercrime has been a growing problem with some alarming statistics showing

that identity theft and cyber fraud affects one in five Australians. The Department of Prime Minister and Cabinet commissioned the Cyber Security Review which identified that cybercrime costs the Australian economy up to $1 billion annually. In addition to monetary losses, cybercrime can lead to damage to personal identity and reputation and

loss of business opportunities. As a result Australian state

governments, law societies and legal practice insurers are requiring solicitors to undertake Verification of Identity (“VOI”) steps to combat this growing type of criminal offending.

With the emergence of e-conveyancing in most jurisdictions, these issues have taken on even greater importance with VOI and the witnessing of execution of electronic documents. Most jurisdictions

have strengthened the witnessing requirements in their land title offices and registries for the lodgement of certain documents.

In Queensland, from 30 September 2019, the Land Titles Act and Land Act requires anyone who witnesses the signature of an individual to:• Take reasonable steps to verify the

identity of the person signing• Take reasonable steps to ensure

the individual is entitled to sign the document

• Retain records for 7 years• Retain the steps taken to verify the

identity and entitlement• Retain copies of the documents and

other evidence obtained during the verification process

For PEXA e-conveyancing settlements, there is a requirement for a VOI process which complies


CYBERCRIMEand Verification of Identity W O R D S _ D A V I D A D O L P H E

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with the Model Operating Rules (“Rules”) set down by the Australian Registrars National E-Conveyancing Council (“ARNECC”). The Rules require completing a VOI through a face-to-face meeting and reviewing original documents for proof of entity. The Rules also require the solicitor to obtain a signed Client Authorisation document.

The e-conveyancing requirement in the Rules is more onerous than other VOI requirements with the need for a face-to face meeting. This cannot be done by way of video conferencing platforms such as Skype. Face-to-face in this context requires the parties to be in physical attendance with each other at the same location.

The face-to-face meeting requirement presents certain difficulties for accommodation clients who are often located in regional and sometimes quite remote locations. In the first instance the easiest option

for clients is the face-to-face meeting but if this is not possible other arrangements with a VOI agent can be made including:• The client attending in person at a

participating Australia Post outlet• An identity agent (arranged by the

solicitor) attending on the client at their location

The documents which are used to conduct the VOI are typically primary documents, such as a current Australian passport and a current Drivers Licence. If these are not available then certain secondary documents may be used. In circumstances where there are limited identity documents an identify declaration may be used. Further documents may also be required to determine a person’s authority or entitlement to sign things or provide instructions such as company searches, trust deed or other appointment documents.

Under the Rules the solicitor is able to rely on the VOI for a period of two years from when it is made. This will likely be acceptable for the other VOI requirements for titles office and registries discussed above. The VOI details are typically saved by solicitors with other client information to be retrieved and used for the client’s further transactions within the two year period. After that period the solicitor will have to arrange for a new VOI to be conducted. For accommodation clients continually proving their identity (and incurring costs to do so) to solicitors who have likely acted for them many times over long periods of time may be very frustrating.

These steps are meant to protect the interests of the parties involved in transactions and maintain the integrity of the Australian system of commercial and property transactions. Clients should take comfort their solicitor’s compliance

with a comprehensive VOI regime will protect the clients’ interests by reducing the risk of financial loss, damage to their personal identify and reputation and impact on their emotional and physical wellbeing resulting from cybercrime. [END]

David Adolphe is an Accredited Specialist in Business Law with the Queensland Law Society and Special Counsel with Hillhouse Legal Partners. David specialises in business law within the accommodation industry in the buying and selling of freehold and leasehold motels, industry franchises, hotels, and caravan parks.


“VOI requirements may be difficult to fulfil for regional and remote operators … but it will reduce

the risk of financial loss and reputation.”

e all know that life in the Outback is only for the tough, the resilient and the slightly crazy and when you speak with the operators of

Curtin Springs, you realise that a healthy combination of all three of these traits is needed in this part of the world.

Set on more than a million acres, Curtin Springs is a very special part of the world owned by the Severin family which has made this remote place not just their home, but turned it into a thriving diversified business which embraces the pastoral and tourism industries. Recently they have also included the art sector.

When you consider that Curtin Springs began as one of Australia’s most remote cattle stations more than 60 years ago, it’s hard to believe this is now a vital hub in central Australia.

“The potted history is that in 1956, my father-in-law Peter Severin came out with his wife Dawn and my husband Ashley, who was then just a baby, to take over Curtin Springs Station with 1,500 head of cattle,” Lyndee Severin explains.

“Curtin Springs at that point was literally the end of the road. There was a two wheel track that led to us and less than a two wheel track that went any further out to the west from here.

“Peter and Dawn took over the station. They had an inch of rain just after they arrived. They thought that was a pretty good omen but then it didn’t rain again for nine years!

“But in those early years for Pete and Dawn, where we are now didn't exist for anyone else.

“The first year they were here, six people drove down the road. The second year, nine people. Ayers Rock (Uluru) is just to the west of us but in the 1950s it was not a tourist destination.”

Through the 1960s, “The Rock” started to attract visitors and Curtin Springs was in a great location just 100 kilometres away to capitalise on the passing traffic. There were no roadhouses or any other accommodations and initially the station provided petrol and meals and eventually it was the first Wayside Inn developed in Central Australia.

Now, it’s a million acre cattle station with 27 accommodation rooms, campground, fuel store and provides homestyle meals for visitors. It also provides private guided walks, Curtin Springs Walks, and tours onto the station. Its newest income stream is paper and jewellery, literally made from local grasses.

“We were certainly the first station to diversify in this sort of way. Now most pastoral properties in this part of the world are diversified in some way,” Lyndee Severin says.

“We chose to go into tourism and that's fairly normal now. Most primary industry businesses in the developed world have got some diversification either vertically or horizontally into their region. And we're no different.

“That diversification means that we've been able to


DIVERSIFY or PERISH THE OUTBACK STATION THAT’S SURVIVED THE TOUGH TIMES THROUGH CREATING MULTIPLE INCOME STREAMS

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Curtin Springs discovered an opportunity to diversify their business even further by harvesting local grasses which can be used to make paper and jewellery.

survive those peaks and troughs in the rain cycle and be able to manage the station in a highly sustainable way to be able to work with those seasons.”

So how did the idea of paper manufacturing and jewellery made from paper come up as an idea for an additional income stream?

Lyndee says the idea began forming around 10 years ago when the tourism side of their business took a hit during the GFC which also coincided with the rapid rise in popularity of RVs and caravans.

“And then people were going to the supermarkets and buying their food, and they're looking after themselves, which is totally understandable. We had lost utilisation in our rooms, so from over 60 percent utilisation across the year to under 20 percent.

“How do we encourage people to stay in accommodation? How do we sell more meals? How do we tell that story of our unique landscape?

“How do we show people our commitment to that landscape and how you can run production hand in hand with protection? You don't have to lock up land to imply that's the only way to look after it.”

It was simply an ‘off the cuff’ comment from a scientist who was studying the decomposition rate of feral camels as part of a project to see whether there were any carbon implications that led to the idea.

“He said ‘Oh, they make paper out of the spinifex, don't they?’.

“I went ‘I've got no idea. No idea’.”“So, when the concept of Curtin Springs Paper came

up. We thought ‘Oh, that could answer some of those questions’.

“We started to mull that around and realised it was totally doable and sustainable. We're taking very small parts off the grass plants. We're not digging up the plants. We're taking the top two thirds off any plant, keeping the root system.

“We've got a million acres, there's plenty of grass. And even in the driest times, you've still got plant material (fibre) that you can use. There's basically no impact on the landscape at all because we're taking a very small amount of material, as we cut it all by hand.

“There's not much damage you can do with that on a million acres, let me tell you. We started making the paper and the concept was to be able to show them what we are doing.

“Our tours allow us to have a conversation with visitors about the landscape they are visiting. Our Curtin Springs

Paper tours run at 10.30 and four o'clock every day. And we'll run those for one person to be able to then go and have that conversation with them.”

From that, Curtin Springs began making items like bookmarks and book covers. The idea of turning their natural fauna into jewellery hit them when one of Lyndee and Ashley’s daughters returned home.

“She came into the office one day and shut the door and said ‘Mum, I need to talk to you’. Now when an adult daughter does that, that conversation can be either heartbreaking or expensive,” Lyndee said.

“But she said: ‘I think that we can use the paper. I think that I can use the paper to make beads and then use the beads to make jewellery. I think that we can value add to what we're doing by taking it in that direction’.

“That's what she's done. So, we've got two permanent collections with different price points and level of complexity. The third collection is more art based. She she's been involved in things like Eco Fashion Week Australia, Sustainable Couture and Wearable Arts.

“Curtin Springs Paper and the jewellery collections have given us a profile in the art sector.”

In conjunction with that, Curtin Springs also runs an Artist in Residence program which has already had three international artists and 15 Australian artists.

“It means that we can spread our customer base, from purely a business point of view, across into

that art sector as well.“The whole plan was to develop Curtin Springs as

a destination in its own right and not simply a support service for people going through to visit the national parks, though this is still a really big part of our business.

“Our land management practice is very strong. The diversification of businesses is very strong and we've had to do that to be able to survive.”

You don’t need to be a Bear Grylls to survive and thrive in the Outback but a positive attitude, backed up by the willingness to ‘have a go’ is definitely needed, Lyndee says.

“You've got to be flexible. You've got to. Part of the strength that we have here is I'm married to a man who goes ‘Okay, well let's just try’. His father is the same, and they've had to do that.

“I will start off in a direction and have a list and the boys just go and make it happen. And certainly from the Curtin Springs Paper point of view, it's now an integral part of the business.

“They've done things, tried things over the years. Not everything works, but it's never going to work if you don't try.” [END]


ExpertiseWe provide expert legal advice across all issues affecting the purchase, sale, management and asset protection of both franchised and independent motels, caravan parks, pubs, hotels and resorts nationwide.

You can be assured that your matter will, at all times, be managed by a senior lawyer with specific skills and extensive industry experience.

Hillhouse Legal Partners will partner with you to deliver simply strategic, smarter legal solutions.

For experienced advice, contact our legal team today.

David Adolphe is a Queensland Law Society Accredited Business Law Specialist and has been in practice for 17 years. He has advised clients in all manner of business transactions and takes a specific interest in Tourism and Hospitality matters. David takes a practical approach to delivering the best possible strategic legal advice to clients on all aspects of business and commercial law matters.

David AdolpheAcc. Spec. (Bus.) – QldSpecial Counsel

07 3220 [email protected]

David Burrough has been practising almost exclusively in Tourism and Hospitality Law for over 25 years and is widely recognised as a leader in this area. Authentic and direct in his approach; David will assess your unique set of circumstances and advise and guide you through the many commercial and practical considerations to ensure you reach your desired outcome.

David BurroughConsultant


HLP0526 Tourism & Hospitality Advertisement – FINAL.indd 1 15/5/19 11:27 am

“Diversification means that we've been able to survive those peaks and troughs in the rain cycle

and be able to manage the station in a highly sustainable way.”


ExpertiseWe provide expert legal advice across all issues affecting the purchase, sale, management and asset protection of both franchised and independent motels, caravan parks, pubs, hotels and resorts nationwide.

You can be assured that your matter will, at all times, be managed by a senior lawyer with specific skills and extensive industry experience.

Hillhouse Legal Partners will partner with you to deliver simply strategic, smarter legal solutions.

For experienced advice, contact our legal team today.

David Adolphe is a Queensland Law Society Accredited Business Law Specialist and has been in practice for 17 years. He has advised clients in all manner of business transactions and takes a specific interest in Tourism and Hospitality matters. David takes a practical approach to delivering the best possible strategic legal advice to clients on all aspects of business and commercial law matters.

David AdolpheAcc. Spec. (Bus.) – QldSpecial Counsel


David Burrough has been practising almost exclusively in Tourism and Hospitality Law for over 25 years and is widely recognised as a leader in this area. Authentic and direct in his approach; David will assess your unique set of circumstances and advise and guide you through the many commercial and practical considerations to ensure you reach your desired outcome.

David BurroughConsultant


HLP0526 Tourism & Hospitality Advertisement – FINAL.indd 1 15/5/19 11:27 am


COMING TO MARKET!

COMING TO MARKET!


The chance to acquire a robust portfolio offering a mix of business-only and large scale business with real estate will be coming soon to market.

This collection of recently established, modern buildings have manageable caretaking workloads and long-term agreements.

As Brisbane experiences a tightening rental market, operators are reaping the rewards of strong letting conditions including declining vacancy rates.

Located in a highly desirable inner city location, the complexes offer an abundance of amenity and lifestyle benefits.

Established businesses of this scale have never been in such high demand and will be eagerly anticipated by the market.

• Range of net profits from $240k - $600k p.a.• Long-term agreements remaining on

accommodation modules• Low vacancy rates and strong letting conditions• Modern apartment complexes with on-site facilities• Premium location for attracting permanent rentals• Limited businesses of this scale and quality

available in Brisbane

L A R G E - S C A L E E S T A B L I S H E D P E R M A N E N T M R I N I N N E R B R I S B A N E

L A R G E - S C A L E E S T A B L I S H E D P E R M A N E N T M R I N I N N E R B R I S B A N E

Coming soon is the opportunity to secure an unprecedented large-scale, established complex with a mix of apartments and townhouses. This high netting asset is currently having sales figures prepared by an industry accountant and will get pulses racing with experienced and locally based operators.

A spacious manager’s unit is included with the sale and whilst there is responsibility to live onsite, a net profit of this size deserves an onsite presence.

• Proximity to major employment precincts• Fantastic amenity in surrounding vicinity• Reputed educational providers nearby• Long tenure remaining on Caretaking & Letting

agreements • Accounting verification currently underway• High anticipated net operating profit• Sale includes modern manager’s unit

V E R Y L A R G E P E R M A N E N T R I G H T S O N T H E S U N S H I N E C O A S T

V E R Y L A R G E P E R M A N E N T R I G H T S O N T H E S U N S H I N E C O A S T

T I M C R O O K S0422 208 450

G A R E T H C L O ST E R0423 182 766


We’re With You All The Way

The Shearing Shed Motor Inn is located in Dubbo, one of the largest regional towns of NSW. Dubbo is the 'go to' destination for all major retail, professional, government, finance and medical services. The Shearing Shed Motor Inn is located on the Mitchell Highway, just metres from fast food outlets and within walking distance from major retail centre, restaurants and commercial businesses.

The Shearing Shed Motor Inn boasts an average occupancy of 90% annually with a substantial percentage of return guests. The motel has had upgrades both with individual units and externally. Financially, the motel is showing excellent net return of $398,984 after addbacks providing a solid income for the purchaser. Also featuring a large management residence.

This motel is a cut above other motels with a sustained high occupancy rate, substantial net profit and all major repairs and maintenance taken care of.

NET PROFIT: $389,984TURNOVER: $833,520PRICE: $1,200,000

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PRIME LOCATION IN DUBBO WITH EXCELLENT OCCUPANCY RATE & SUBSTANTIAL NET RETURNS

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› Leasehold for one of the busiest motels in Dubbo › Continued repeat business with extremely high

occupancy rates › Well maintained property › Very little capital input will be required for years › Large net profit › Excellent staff to assist with transition › Fantastic guest engagement

Ref // LH006220

23Rooms


®

We’re With You All The Way

For the past 35 years, ResortBrokers has proudly served regional Australia.

During these difficult times, it may take us a little longer to do our regular drop-ins to see how you’re tracking…

but don’t worry, we will get there.

The Establishment Hotel, Sydney


hen its foundation stone was laid in 1889 by Sir Henry Parkes, The Australia Hotel on Sydney’s Castlereagh Street

became the nation’s premier hotel. Describing itself as “The Hotel of the Commonwealth”, it was grand and austere as it stood sentinel over the city with its polished grey granite stairs which descended down to the street surrounded by red doric columns.

Its opening was lauded as a major milestone in the rapidly developing country and, at the time, newspapers proclaimed that The Australia Hotel would forever remain a national icon as it unashamedly scorned modernity and sought to replicate the classic European hotels.

It was demolished in 1971. So what happened? It was bought by insurance and finance giant MLC in 1968 with promises of refurbishing and maintaining the hotel, but a purely financial decision was made.

It was a defining moment and heralded the notion that the accommodation industry needs innovation and change to survive and thrive.

Even more so today, each hotel brand and independent operator is trying to set themselves apart to attract more discerning guests who are looking for unique experiences in a very crowded marketplace.

Independent accommodation innovators have now joined the major hoteliers (and in fact many have been swallowed by them) and we now have a situation where the world’s six biggest hotel companies have more than 90 brands between them.

Everyone wants to differentiate to gain market share, but how do you do that?

“The key considerations now for hotel design is innovation and distinctive design response, considering architecture of the building and strong sense of space,” says Ljiljana Gazevic, a director at SJB which specialises in architecture, interiors, urban design and planning.

“Connecting to surroundings has an impact on the design of the hotel, culture personality of the city and connection with local art and craft,” Gazevic says.

“It’s also important to provide a unique design experience, a familiarity element of fun to guests through the point of difference while adding a simple

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The Future of Hotel DesignFEATURE ARTICLE

Why innovation & design is vital to connect with guests

FEATURE ARTICLE



The Future of Hotel Design


THE ESTABLISHMENT HOTEL IN SYDNEY WAS AN SJB PROJECT WHICH INTEGRATED THE ORIGINAL ARCHITECTURE OF THE HISTORIC GEORGE PATTERSON BUILDING WITH CONTEMPORARY STYLING


FEATURE ARTICLE


The Fantauzzo Hotel, Brisbane


The Fantauzzo in Brisbane received widespread acclaim for its distinctive design which transformed the space

into an informal art gallery.

integration of technology.“Other key considerations include quality of

accommodation and comfort through design approach, material selection, attention to details and execution of project creating a comfortable ‘home away from home’ experience.”

SJB was the architectural firm behind the stunning new Art Series Hotel, The Fantauzzo, in Brisbane’s Howard Smith Wharf precinct which drew widespread praise when it opened in 2019.

The $100 million project encapsulates this shift towards the “individualisation” of hotel design. It was named after painter Vincent Fantauzzo and is designed to showcase the work of the Australian artist.

“Located against a rugged cliff face, directly beneath the heritage-listed Story Bridge and alongside a group of historic industrial warehouses was part of the challenge and complexity our team had to deal with,” Gazevic says.

“The design of the hotel takes the inspiration from the immediate surroundings where the facade of the building with earthy colours and geometrical form resembles the cliff face behind it.

“Throughout the guest rooms the interior introduces a mix of a camel tone in leather upholstery combined with warm timber. The accent and touches of emerald green are a nod to the vegetation on the cliffs.

“Black terrazzo used for the foyer floor and concrete to the ceiling act as a base for confronting Vincent Fantauzzo artwork displayed in corridors and all guestrooms.”

Hotel design is no different to any other business, in any industry, in that it is dependent on trends that stem from the demand and preferences of consumers.

“In a holistic sense the move toward individualisation hotel design is about creating a feeling of personality and character, an environment that evokes emotions, creates experiences, and is influenced by a guest’s desire for personalisation,” says Dennis Clark, founder of Hotel Interiors.

Clark’s company has more than 35 years’ experience

in supplying furniture and designs to the accommodation industry and he says there are two key factors driving “individualisation”.

“The first is that many guests are now looking for a more authentic, warmer experience – less overtly hotel, more something that makes them feel a sense of home while still feeling different and special,” Clark says.

“The second is that Hoteliers are embedding their brand and style across their portfolio of properties, creating environments that are geared directly toward their target demographic and guest type, creating consistency and brand awareness while offering repeat guests a varied and stimulating experience.”

Clark also points out that it’s not just the boutique accommodation properties that are looking for bespoke

design. “We work with

a number of chain hotels, some of which include Sheraton, Hilton, Ramada and Pullman. These clients expect a level of branding and quality to be represented throughout all their hotel locations. They do however desire bespoke designs that reflect each hotel’s location and inspire the individuality of each hotel.”

The debut of the Fantauzzo capped a remarkable 18 months in Brisbane, which was once a very lacklustre market. The demand for design-driven accommodation

product has resulted in the opening of The Westin, W Brisbane, The Calile, Ovolo Inchcolm, Ovolo The Valley and Emporium South Bank, among others.

These aren’t the four-star cookie-cutter behemoths of previous years which catered to the conference crowd and stranded interlopers. These are four and half to five star service-oriented boutique properties aiming at high value travellers.

“Operators want their properties to stand apart from competitors,” says Jo Smart, managing director of bespoke interior design company Furn-niche which was also involved in the Fantauzzo.

“Generally, end users are more sophisticated with their tastes and expectations thanks to social media, reality TV shows, easy access to online booking and generally being well-travelled,” Smart says.

“The latest client request is to create an ‘insta’


The simple truth is that hotel design is no different to any

other business in that it is dependent

on the demand of consumers.

moment in the public space - operators are changing focus from expressing a brand to expressing a location.”

The hotel industry is one that constantly yearns for innovation, given its global and competitive nature. All hotel brands want to differentiate themselves but at the same time, innovation and experimentation needs to be balanced with economic responsibility if the hotel is to be successful instead of a gimmick.

However, ‘out of the box’ thinking must always be balanced with economic pragmatism. Ultimately, hotels, as a real estate asset class, are challenging. Any investment risk must be justified by the requisite financial rewards. [END]



Boutique DesignGoes Regional

t wasn’t that long ago that a road trip into country Australia involved a basic motel room with

parking out front, a TV with just one channel, packets of instant coffee, soap in plastic wrap and a cooked bacon and eggs breakfast thrown in.

The trend towards design-driven accommodation properties is well and truly taking hold in regional Australia and the Byng Street Boutique Hotel in Orange, western NSW, is a good example of that.

With 22 rooms and suites, it opened in August 2019 right in the heart of Orange's heritage precinct within an easy walk to great restaurants, cafes and boutique shopping.

The town of Orange has developed as a tourist destination in its own right thanks to its world class wineries and classic Australian regional setting and the hotel combines great architectural design, a vibrant interior design, high quality accommodation and personalised and sophisticated service.

Formerly the historic “Yallungah” homestead, built around 1896, the property has undergone major renovations to create a refreshing combination of historical homestead

and contemporary architecture.Yallungah has now been restored to

highlight its heritage features, including the slate roof, internal and external timber joinery. Mayoh Architects were engaged to design the new rear section of the hotel based on their extensive experience in bringing together old heritage buildings with stylish modern additions.

The vision for the restoration and expansion has been to bring life into the building that would intrigue the guests. Inspiration has been drawn from the quirky details of the existing building, local artists, the surrounding landscape and the history of the region.

The accommodations are a choice of either contemporary rooms in the Modern Wing or historic style and charm in the Heritage Wing.

"We've combined elements that we've loved from hotels we've stayed or worked at to create a bespoke luxury accommodation experience," says Kristen Nock who developed the property with husband Tom.

ResortBrokers is proud to present this fantastic property to the market. Call our Central West NSW specialist Chris Kelly for more details. [END]


REGIONAL ACCOMMODATION OPERATORS LIKE

BYNG ST IN ORANGE ARE INCREASINGLY MOVING TOWARDS

BOUTIQUE OFFERINGS AS THEY

EMBRACE NEW DESIGN CONCEPTS.

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ResortBrokers has been appointed as exclusive marketing agents for the sale of the management rights and associated freehold of the iconic Kelly’s Beach Resort located in Bargara in Central Queensland.

This offering presents a great opportunity for incoming managers to take this business to the next level, building on the strong foundations in place.

Offered for the first time in 16 years, the 3.5-star Kellys Beach is a multi-award winning resort and is the only mainland eco accredited resort in the Southern Great Barrier Reef.

It is located a block back from the beach on 5.5 acres of gardens, with a total of 41 villas (39 of these in the letting pool). The resort is classified as a tourism accommodation-only facility.

The ground floor of the reception building is 344sqm, which includes the restaurant/bar, office and kiosk. The facility has a commercial on-premises liquor licence which covers the whole complex.

NET PROFIT: $232,730PRICE: $1,350,000

B A R G A R A

G L E N N M I L L A R B R O K E R

ICONIC RESORT ON QUEENSLAND’S CORAL COAST

+61 412 277 804 [email protected]

› Long accommodation module agreements › Potential to increase food and beverage business › Zoned tourism accommodation only › Healthy Body Corporate salary › Valuation available on freehold › Eco accredited resort › No unit to buy and no requirement to reside onsite

Ref // MR006156

41 39 23Suites Letting Years


ResortBrokers is delighted to bring to market this truly unique underground accommodation in Central Australia’s famed opal capital, Coober Pedy.

Featuring 16 spacious underground rooms with facilities including a restaurant and function / conference room. This is an ideal opportunity for owner operator couple or equally suited to investor buyers.

Perfectly positioned for growth with DA approval sought and granted in 1999, an additional 9 underground rooms have been carved out and electrical wiring and plumbing pipes are already in place. Fantastic potential for additional income.

This multi award winning property with the largest underground rooms in Coober Pedy has various room configurations to meet the needs of corporate and leisure travellers alike.

Comfort Inn Coober Pedy boasts high exposure to one of the country’s great inland routes, The Explorers Way, which conveys travellers through the iconic Red Centre, between Adelaide and Darwin. And it enters the market at a time when visitor numbers throughout Australia’s Outback are surging.


C O O B E R P E D Y

K E L L I C R O U C H B R O K E R

SEEKING LIFESTYLE CHANGE, TRY THIS ON FOR SIZE?

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› Additional nine rooms can be added with only second fix and soft furnishing required to complete

› Additional nine rooms would make it 20+ rooms and attract coaches/groups

› Showing 17.9% return › No stamp duty payable on commercial properties

in SA (since 1st July 2018) › Ongoing refurbishments have been undertaken › Opportunity for growth through the restaurant

and conference centre

Ref // FH006165

16Rooms


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Offered exclusively by ResortBrokers is the rare opportunity to acquire the management rights and associated real estate of Dunsborough Beach Cottages. The property occupies one of the most desirable beachfront locations in the idyllically situated seaside town of Dunsborough, in the beautiful Margaret River region of Western Australia.

Operating as a management rights business, the complex is made up of 24 individual beach houses comprising three and four bedroom holiday residences with excellent appeal. 23 beach houses are in the holiday letting pool and one beach house is used as the manager’s residence and office.

With a new 10 year commercial management agreement just signed, the complex is ready for new ownership. The property has been operating with resident management. However, the management rights are being sold on the expectation that the Business would be “owner operated”.

This opportunity would ideally suit a couple looking to enjoy the beautiful Dunsborough and Margaret River environment while operating a small, highly profitable complex in a fantastic beachfront location.

NET PROFIT: $274,820PRICE: $1,445,000 (INC. RESIDENCE)

D U N S B O R O U G H

B L A I R M A C D O N A L D B R O K E R

THE ULTIMATE SEACHANGE! BEACH FRONT OPPORTUNITY IN THE MARGARET RIVER REGION


› New 10 year management agreement in place › Prime absolute beachfront location › All beach houses are in the letting pool › Strong body corporate salary › 4.5 score on TripAdvisor › Experienced staff to assist with transition › Predominantly local intra-state visitors

Ref // MR006223

24 10Beach Houses Years


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ResortBrokers has been appointed exclusive listing agents for the sale of the management rights of the residential complex Monterey Noosa River Heights.

On offer for the first time in 13 years are the management rights of the complex, consisting of both caretaking and letting agreements. However, the current managers do not handle any rentals as the complex is almost entirely owner occupied. No licence is required to carry out the caretaking duties and there are no fixed office hours.

This premier complex of 64 houses and villas features a lagoon style pool, quality tennis court with night lights, a BBQ area and park-like gardens. This fabulous property has safe and easy access to public transport, walking distance to shops and a very short drive to restaurants, river and beaches.

The manager’s residence is a spacious 174sqm stand-alone house located directly inside the gated entrance, plus an office of 30sqm.

NET PROFIT: $113,000PRICE: $1,165,000

T E W A N T I N

CARETAKING ONLY BUSINESS WITH GREAT LIFESTYLE AND SOLID NET PROFIT

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› 22 years remaining on agreements › Stunning modern three bedroom manager’s

residence › Close to Noosa’s beaches and all the region

has to offer › Large body corporate salary › Potential to operate letting service

64 22Townhouses Years


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G L E N N M I L L A R B R O K E R

+61 412 277 804 [email protected]


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Exclusively designed by a motelier means everything has been thought of with this motel. Ideally situated in the heart of the CBD, it offers proven performance with massive upside to boot.

The Lismore Bounty is conveniently situated to enjoy all that Lismore offers: a fabulous selection of restaurants, cafes, shopping, entertainment and nightlife.

The 4-star rated AAA motel provides a range of accommodation suitable for all travellers (including both corporate and day-to-day travellers) and has a huge repeat customer base. It offers a range of room options consisting of executive spa suite, balcony suite and studio.

NET PROFIT: $350,586 CAL YEAR

TURNOVER: $1,507,196 CAL YEAR

PRICE: $1,150,000

L I S M O R E

G R E G J A M E S B R O K E R

41 ROOM, 4-STAR MOTEL IN LARGE THRIVING REGIONAL TOWN


› 4-Star AAA rated › Secure undercover parking for all units › Massive upside › Population in town is 27,500 › Neat as a pin › 26 year lease term

Ref // LH006204

41 26Rooms Years


Say Goodbye ToTHE PREDICTABLE


HOTEL PROFILE

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Say Goodbye ToTHE PREDICTABLE


ith the demand for design driven accommodation experiences reaching new levels, it’s little wonder that the Crystalbrook

Collection is on a tear with new launches and acquisitions taking place at regular intervals.

The upstart brand recently added the Byron at Byron Resort (in Byron Bay of course), one of Australia’s most awarded properties, to its portfolio from previous owner Gerry Harvey in a reported $42 million deal. In securing the deal, Crystalbrook transformed itself from a boutique operator in a niche market, into a serious player in the industry.

“We are building a global brand – a brand that can operate anywhere in Australia and eventually, anywhere in the world,” says Katie Malone, Group Director of Marketing at Crystalbrook.

“Despite only launching our first hotel in 2018 and now having six either open or under development, we are committed to expansion.

“We’re open to all opportunities that are right for our brand. So far, this has been hotel and resort developments and acquisitions along the east coast of Australia however our focus right now is Australia and New Zealand.”

Its modern designs, bespoke furniture and artworks have been curated with the help of local designers, architects and others to create a “hyper-personalised” experience for its guests.

Each of its properties has its own distinct identity and this has helped Crystalbrook reinvigorate the modern hospitality experience.

“Crystalbrook is like a family; each hotel or resort like a child, unique in nature and an advocate of the group’s core values,” Malone says.

Our mission is to bring out the individual personality of each hotel and make it shine. From interiors, art, design, music, food and technology to clever guest touch-points, we want who we are, and what defines us, to play a big role.

“We also embrace technology and innovation, both operationally and for customer service, to deliver on its core promise of responsible luxury. We offer fast and free Wi-Fi, in-room Apple iPads, Staycast by Google for video streaming, and hundreds of complimentary movies.”

It's also a hotel group that has embraced the concept of being environmentally conscious while retaining its sense of inclusiveness and fun.

“Our goal is to be an Australian leader in sustainable tourism through attitude, design, technology and a passion for a better world – or what we call responsible luxury,” Malone says.

“At any of our hotels or resorts, you’ll find no plastic straws, no plastic water bottles, recycled wooden key cards, bags and takeaway containers made from corn, sugar cane and environmentally friendly and fully degradable materials.

“We have large pump amenity bottles (saving more than 1.2 million plastic bottles a year), 80 percent of produce from within a three-hour drive, even the coat hangers had a previous life made from recycled pressed cardboard.”

So what type of guest is the Crystalbrook experience aimed at - city types on a weekend getaway, romantic couples, affluent solo travellers?

“We believe just as no two people are the same, no two hotels are the same. We’re attracting guests with varying needs, wants and aspirations to our properties by appealing to their personal travel style.

After launching its first hotel in 2018, this design oriented accommodation brand has quickly added another five properties and resorts, each with its

own personality. Across the portfolio, each room and space has been created individually with a sense of fun thrown in.

CRYSTALBROOK COLLECTION

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“Our guests are luxury travellers who love the five-star lifestyle yet are environmentally passionate and searching for a remarkable experience, something new and exciting.”

In an increasingly crowded market place for accommodation operators, Crystalbrook has embraced the trend towards design driven experiences and its rapid expansion is being driven by consumer demand.

“Every room and space has been thoughtfully curated

to suit the traveller. Each of our hotels has a completely different physical style and this has been well-noted by our guests,” Malone says.

“In fact, design is one of the most common comments in our guest reviews. The other part of it is social.

“Guests document their travels through journals, photos and videos. Having aesthetically-beautiful and bespoke design-led accommodations has become a key player in the traveller's decision-making process.”

RILEY

“Living in the moment”

Riley is a sophisticated character with a playful outlook on life and a passion for the resort lifestyle. Located in a prime location at the northern end of the iconic Cairns waterfront boardwalk, Riley features 311 stylish rooms and suites, most with spacious balconies.

The Crystalbrook Portfolio:

LITTLE ALBION

“Devastatingly alluring”

Situated in the heart of Surry Hills, Sydney, Little Albion is an eclectic mix of heritage and contemporary detail true to its own DNA and that of Surry Hills. Little Albion, with 35 rooms, is delightfully intimate, devastatingly gorgeous, genuinely original and refreshingly unpretentious.

BYRON AT BYRON

“Contemplating nature's wonders”

Nestled in 45-acres of magical subtropical rainforest, Byron at Byron, a Crystalbrook Collection Resort, is a celebration of nature, responsible luxury and the local environment with 92 stylish suites in stunning natural surroundings in an idyllic Australian destination.

BAILEY

“Thoughtful and arty”

Opened last November, Bailey is modern, innovative and with a true appreciation of the arts. At Bailey, you’ll find artists-in-residence and artwork from the local community displayed in and around the 255 room hotel, along with art events.

HOTEL PROFILE


FLYNN

“The wild child”

Set to open on March 31, 2020, Flynn will be the younger sibling to Riley and Bailey. Fun and energetic, be prepared to be entertained at Flynn, from exquisite glass swimming pools, zen-filled wellness and meditation centres, to dynamic food and drink experiences where there's always a DJ ready to play and a martini ready to be shaken.

KINGSLEY

“Culturally connected “

Opening Q1 2021, Kingsley will be the first five-star hotel in Newcastle. Embracing a shifting landscape, Kingsley is located in the heart of Newcastle, with the City Hall, Civic Theatre, Art Gallery and War Memorial Cultural Centre moments away. It will feature 130 sophisticated and elegantly appointed rooms. [END]


PARTY

HATS ON,

RESORTBROKERS

IS TURNING

35!THANK YOU TO EVERYONE WHO HAS JOINED US ON OUR JOURNEY!


PARTY

HATS ON,

RESORTBROKERS

IS TURNING

35!


S T A T E O F O R I G I N

Our Queensland team has been bolstered by three new selections and one major positional switch. Welcome to our new brokers Jeff Keast, Jake Crooks and Grant Sulzberg, while Chenoa Daniel gets to work on the Sunshine Coast after moving down from far north Queensland.

New Kids on The Block APPOINTMENTS

J E F F K E A S T _ B R O K E RB R I S B A N E

M A N A G E M E N T R I G H T S

or most people, their first job out of school involved pulling beers or typing names into a database but, for our new Brisbane Specialist Jeff Keast, his was a far more difficult one.

Not afraid of a challenge, Jeff went straight to work as a debt collector for a debt collection agency - talk about throwing yourself in the deep end!

“I spent three years in that industry and you know what? It taught me a lot about negotiating with people, particularly over the phone and often under difficult circumstances,” Jeff recalls.

It’s this ability to be able to handle delicate negotiations under all situations which led Jeff to ResortBrokers and he’s set to become a major asset to our Brisbane management rights team.

Prior to joining us, Jeff started his own retail car yard specialising in used cars and for the past seven years, he’s been working in the wholesale end of the car business which involved buying trade-ins from new car dealerships. He also ran a car buying business called Cars Brisbane. This involved acting as a broker between private seller and a dealer and his commitment to customer service meant he maintained a five star rating on Google for seven years.

“Across all these businesses and industries there is one constant. You need to provide your clients with impeccable service and really listen to what they need. And then you need to work your backside off to get them the best result,” Jeff says.

Away from work and he’s a keen mountain biker and most weekends he and his wife Kathy and two kids Sophie (11) and Levi (7) take the bikes out for a family ride.

“I’m also into keeping fit by going to the gym and have a personal trainer to kick my arse to try and keep me in shape!”

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e’s a self-confessed country boy from Orange who’s relocated to “the big smoke” of Brisbane and Jake Crooks brings a wealth of sales, business development and

leadership experience to his new role.It’s a bold move to relocate your family (he has two little girls)

interstate and into a new industry but when you look at Jake’s background, it’s obvious he has the skills and experience to become a high performer in the ResortBrokers team.

Before joining ResortBrokers, he was the Toyota sales manager for eight years at West Orange Motors where he led and trained a team of 12 people. This also involved developing annual business plans, account keeping and generating profit and loss statements.

But his real skill was in the development and implementation of key performance indicators for himself and his staff which helped drive unprecedented success at the business.

His biggest achievement, and evidence of his highly toned sales skills, was when he sold 84 cars in a month which smashed the old record in the central west of NSW.

“Friends and family say they’re proud of what I’d achieved and described this move to ResortBrokers as ‘brave’. I don’t see it that way,” Jake says.

“I have no doubt that all that experience I’ve gained in the past decade or so will be a really good fit for what I need to do here in this new role.

“The most important thing is look after the client. Make sure they have every piece of information which is important to them and communicate every step of the way.”

New Kids on The Block

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G R A N T S U L Z B E R G E R _ B R O K E RC E N T R A L Q U E E N S L A N D

C H E N O A D A N I E L _ B R O K E RS U N S H I N E C O A S T

hen the opportunity presented itself to take up a role with ResortBrokers, Grant says “it just seemed like the perfect fit” and

something that he felt would be very rewarding in an industry that he is familiar with.

As our new Central Queensland Specialist, Grant has previously owned and operated his own accommodation businesses for the past 17 years. Prior to that, he was a very successful business broker on the Sunshine Coast selling all types of businesses from cafes, accommodation establishments to child care centres and major transport companies.

As the current owner of a freehold accommodation

property in coastal central Queensland, and earlier this year selling a large motel business in north Brisbane, Grant's experience and understanding of the accommodation industry will help buyers and sellers achieve their respective goals.

So how did Grant transition from an accommodation owner to becoming a ResortBrokers specialist?

"I had listed my property for sale with Len Booth of ResortBrokers and he was the one who suggested I join the team and put my skills, knowledge and experience to work,” Grant says. “And what can I say, Len knows how to close a deal and here I am. I’m ready to go and looking forward to the challenge ahead.”

Grant will now work closely with Len, our central Queensland specialist and senior executive to service the area offering a high level of service, advice and expertise to all accommodation providers and prospective purchasers alike.

Prior to owning motels and business broking, Grant worked in commercial lending for a major Australian bank then left to go into business where he owned and operated two Capt'n Snooze franchises for seven years in regional Queensland.

We at ResortBrokers feel this diverse business background should help Grant to make a real contribution to all future and current accommodation owners in the central Queensland area.

“I’ve never been afraid of taking on a new challenge and, you know what, this one makes total sense. I know first-hand what it takes, and what to look for, to buy and sell an accommodation business. I also know how to build one up and I’m really looking forward to helping others make a real go of it in this exciting industry.”

or the past three years, Chenoa has been ResortBrokers’ far North Queensland specialist and, after racking up an impressive $28 million in sales from 19 deals, she is now in her new patch on the Sunshine Coast.

Her track record speaks for itself. In November 2019, Chenoa achieved the highest multiplier (above 4.5X) in her region in recent years with the sale of the management rights to the Peninsula Boutique Hotel Port Douglas. That multi-million dollar sale attracted national media coverage and the achievement was all the more meritorious given the tough market.

Chenoa also hit the national headlines when she and Glenn Millar sold the management rights to the former Oaks Lagoons resort in Port Douglas on behalf of Minor Hotels to Silkari Hotels.

Other notable sales include Saltwater, The White House and Bay Villas Resort in Port Douglas and Jack and Newell Cairns Holiday Apartments.

“I’ve enjoyed every minute of my time in the far north but I think it is time for a new challenge,” Chenoa says. “This will be a step up in my professional career and with 11 years in the management rights industry, it’s an opportunity for me to put it all together in a new environment and market.”

Since joining ResortBrokers in 2016, Chenoa has also married and become a mum, a role this young dynamo successfully manages with her stellar career.

"As probably the youngest woman working in this industry nationally, I bring a valuable perspective to what is such a dynamic sector. I will always strive to take our service and marketing to the next level.”

That, in a nutshell, encapsulates the work ethic and professionalism that has seen Chenoa become one of the most astute management rights brokers in the business. [END]

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www.mahoneys.com.au

Buying/sellingassistance

Off-the-plan implementation

Renewal strategy

Disputeresolution

The Management Rights Lawyers

Michelle Lim(Lawyer)

John Mahoney (Partner)

Amy McKee(Partner)

Ben Seccombe(Partner)

Amy O’Donnell(Senior Associate)

Nicole Cleary(Senior Associate)

Vanessa Sciortino(Senior Associate)

William Kenny(Lawyer)

Michelle Lim(Lawyer)


We are excited to present this absolute beachfront, short-term complex to the market with a net of over $234,000.

Only 23 units in the complex, all with two bedrooms and one bathroom – the perfect investor building. The current letting pool has remained stable throughout the current manager’s tenure, and they have done a magnificent job taking the satisfaction rating from 42% to 92% on Booking.com.

Majority of the units have had a modern styling upgrade, with only a few units remainning for the incoming manager to coordinate with the investor owners.

Due to the location of Hibiscus On The Beach, there is an excellent opportunity to bring some lockups into the rental pool.

With the renovated manager’s unit, there’s potential to expand the two-bedroom, one-bathroom unit into a two-bathroom by adding an ensuite to the master.

This is one of the few remaining absolute beachfront complexes, make sure you secure it now!

NET PROFIT: $234,034PRICE: $1,760,000

M A I N B E A C H

P A U L M U E L L E R B R O K E R

MANAGER WANTS ALL OFFERS SUBMITTED... MUST SELL!

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› Short-term complex › Absolute beach front › 24 years remaining › Net over $234,000 › Great family friendly locations › Profit and loss prepared by Holmans › Perfect complex for that management rights

journey › So much more growth remains!

Ref // MR005756

23 14 24Rooms Letting Years


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ResortBrokers exclusively presents to the market a once in a generation opportunity to purchase by way of Expressions of Interest, Eagle Nest Park Eco Tourist Resort, 25 minutes south of Port Macquarie. The current owners are seeking interest from experienced entrepreneurs, dedicated to the preservation of the natural beauty of this stunning location. The property can be purchased via a long term lease arrangement or a freehold sale.

Current operations see the whole site booked out for $5k per night, including accommodation, with the opportunity to self cater or hire in catering to use the facilities provided. Typical weekend wedding packages are around $15k-$20k for site hire and accommodation only.

This 450 acre property is the essence of relaxation and luxury all rolled into one with nature. This amazing venue lends itself to the wedding, corporate retreat and leisure markets perfectly. Scenic coastal views, sunsets over the lake with over 400 acres of natural bush, walking and riding trails. Between the resort complex and the extensive Queens Lake, hour after hour can be spent at one with nature. EXPRESSIONS OF INTEREST

CLOSING AT 4PM ON 11TH MAY 2020

G R A N T S B E A C H

J A S O N V O G L E R B R O K E R

RARE AND TOTALLY UNIQUE OPPORTUNITY, EAGLE NEST PARK ECO TOURIST RESORT


› Totally off-grid with solar and batteries plus own filtered water supply

› Accommodation to sleep 36pax in adapted shipping containers

› 450 acre rural property with lake frontage and ocean views

› Impressive wedding facility, corporate retreat or family reunions

› Core koala habitat and migration corridor › Fully equipped commercial kitchen and large

communal dining area › Covered outdoor BBQ area, alfresco dining with

pizza oven and fire pit › Swimming pool and massive recreation shed with

half-court basketball

13 450Rooms Acres


If you’re looking for an opportunity that offers a comfortable lifestyle in a busy rural town and a huge net profit with serious upside, then this could well be the business for you.

On offer is the freehold going concern for the 3.5 star Motel Ingham which enjoys prime highway frontage. The perfect corporate motel, it has 19 units of varying configurations.

This is an easy to run motel with guests leaving early to travel further, work in the town for the day or spend the day doing the tourist run and enjoying the many attractions it has to offer. With strong repeat clientele, there is very low reliance on OTAs for bookings.

NET PROFIT: $253,465TURNOVER: $416,657PRICE: $1,690,000 + SAV

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D E S F A G G B R O K E R

RARE OPPORTUNITY TO PURCHASE FREEHOLD GOING CONCERN OF A GREAT MOTEL IN INGHAM

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› Net profit showing $253k › Total of 19 units in varying configurations › Loyal repeat corporate guests › Easy to run with casual cleaners › On main highway just 400m from CBD › Just an hours’ drive to Townsville › Upside potential subject to DA approval › Great manager’s residence - two bedroom, one

bathroom, one study

Ref // FH006110

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Beautifully presented, in a quiet but popular part of town, this motel enjoys strong repeat clientele from energy, gas and predominately corporate clients. Guests love this property because each of the units are freestanding, self-contained and have convenient parking.

This property has undergone a major transformation under the current owners. The main building (manager’s residence, dining, reception), gym & BBQ area, maintenance shed, and all of the executive villas were constructed as new buildings between 2012 and 2015.

There is a fully equipped restaurant and commercial kitchen, only used by current management for breakfast. However there is opportunity is to run a full restaurant. In the meantime, this space is used as a conference area.


C H I N C H I L L A

I A N C R O O K S C H A I R M A N

BEAUTIFUL FREEHOLD MOTEL 17% RETURN


› 62 units ranging from 3.5-4.5 star › Excellent managers / owners accommodation › Strong rural town - 3.5 hours west of Brisbane › Motel services predominately corporate clientele › Currently run under management › Perfect in every respect to owner-operate

or run as is under management › Rooms designed well for overnight or

long-term stays › Strong upside to grow occupancy by increasing

marketing › Perfectly positioned for future mining/energy

development in the area

Ref // FH006197

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The owners are also offering the option of a new 30-year lease for $750,000, showing a 40% return.


Located right in the heart of backpacking hotspot, Kings Cross, this building has been re-engineered to produce a wonderful hostel catering for 114 guests.

Owners are offering a new 30-year lease at a very realistic price and rent. This can be either run with an offsite manager or by yourself. The net profit is calculated after a fully staffed operation.

Word has spread among the international backpacking community - this is a real gem set on tree-lined Victoria Street with views of the CBD. Just minutes to the train station and cosmopolitan cafés and restaurants and an easy walk to the CBD, Circular Quay, Sydney Opera House, Darling Harbour, Chinatown and The Botanical Gardens.A very rare Sydney opportunity!

NET PROFIT: $269,877TURNOVER: $767,767PRICE: $895,000

K I N G S C R O S S

I A N C R O O K S C H A I R M A N

VERY PROFITABLE SYDNEY BACKPACKERS

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› Premier Sydney location › Recognised amongst its peers as the best › 30% ROI › Current occupancy built with minimal OTAs › Landlords pay generous outgoings including

building insurance and land tax

21 30Rooms Years

R U S S E L L R O G E R S B R O K E R



MORE INCOME HIGHER VALUE

EASY TO RETROFITEXISTING BUILDINGS

It’s why gigafy’s WiFi solutions are found in more than 12,000 apartments (including 8,500 residential units) and 300 hotels and resorts across Australia.

If you outsource internet service provision in your permanent building, you are missing out on valuable income. With gigafy’s simple WiFi network system, you become the preferred ISP. Residents enjoy better service. We take care of billing and support. You collect the $$$.

VALUE FOR YOU

New on-going revenue stream

Proven 300-500% 5yr ROI

Faster, more reliable connections

High tenant satisfaction and retention

Increased management rights resale value

Easy switch between permanent and

short-term uses

YOUR BUILDING COULD BE MAKING YOU MORE!

gigafy.com.au 1300 444 239

Speeds equal to or better than fibre

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No contracts, flexible plans

No set-up fees, no equipment needed

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VALUE FOR TENANTS


AFTER THE BUSHFIRES

HELPING ACCOMMODATION & TOURISM OPERATORS GET BACK ON THEIR FEET



t’s been labelled the “biggest challenge in living memory” for the accommodation industry and when Australia’s largest bushfire crisis finally

ended in February, devastated communities turned their focus from survival to recovery.

The five month megafire followed two years of prolonged drought and, while damage estimates vary wildly because of the sheer scale of the disaster, figures like $100 billion have been used as a guide. Of course, there is no measure for loss of life or wildlife habitat.

The economic impact is perhaps a little more measurable with Moody’s Analytics reporting it will exceed the $4.4 billion set by 2009’s Black Saturday blaze.

Tourism operators will bear a significant chunk of that and, even as the fires were burning, grassroots campaigns began with the aim of helping those in the industry to get back on their feet.

Ordinary, everyday people found extraordinary ways to raise funds for the firefighters during the crisis and one campaign carried the banner for tourism operators.

The Empty Esky Campaign was set up with the aim of encouraging Australians to pledge to visit a bushfire affected town or community in 2020 with an empty esky and spend money to help the economic recovery.

Empty Esky was created on January 6th with the motto of “go on a road trip, visit the local businesses devastated by the fires, hear their stories and purchase their incredible products”.

With so many tourism operators relying on the usual summer influx of tourists, the November to February ‘wipeout’ has sent many of them under while a large percentage have their backs to the wall.

"Not only has there been a huge impact on our agriculture, the local economy has taken a severe hit, especially small businesses. This is the time of year that tourism businesses make their money to survive the quiet winter, and the bushfires have made it impossible for them to operate and generate a living," says Empty Esky co-founder Erin Boutros on their Instagram page.

Also created by Eleanor Baillieu and Elise Mason,

the campaign launched with a few thousand followers on Instagram and within a short space of time hit the 50,000 mark.

On both Instagram and Facebook, Empty Esky showcases small businesses in need of support, helping concerned travellers locate safe bushfire impacted towns and invest in local products and produce, by filling up their empty eskies in the process.

Restaurant owners Kevin and Susan Plath from Bright in Victoria’s alpine region were facing bankruptcy after they, and their four year old daughter, were among the 35,000 people evacuated from the region because of ongoing fires near Mt Hotham.

The couple also own a side business called The Alpine Sauce Co and when they tagged Empty Esky in one of their

photos, everything changed.

Empty Esky shared the post and asked for followers to buy 100 bottles of their BBQ sauce. They hit that number within an hour and it has since sold well in excess of 1,000 bottles.

“While our profit margin on the sauce is quite small, the volume that we have received in terms of orders has injected some much-needed cash flow into our lives,” Susan said.

Lindsay Tytherleigh, owner of Sinclairs Country Retreat at Conjola on the NSW south coast was at “ground zero” of one of the worst fires

in the country. He and his family made national headlines when they were dramatically winched to safety by a navy helicopter in December as the blaze headed towards their property.

“We’re still in the recovery stage but it is absolutely crucial for people to get out and support the communities that have been impacted by the bushfires,” Tytherleigh said.

“And this is just not about accommodation operators like myself, it’s about supporting all the people that have been affected. This is the time they need you.

“Go and stay in the area. Go shopping while you’re there. Support the local businesses, the clubs and anywhere else that employs people.

“Not just here at Conjola and the Shoalhaven, but

From all of us here at ResortBrokers, we want to send an enormous 'THANK YOU'

to everyone who has worked to help others, especially the volunteer firefighters. Our deepest sympathies to all those who have

been affected by this tragedy. TRUDY CROOKS_MANAGING DIRECTOR

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‘Shop local, stay local’: there’s nothing more true blue than a humble esky and it was this small item which helped kickstart a national campaign to support communities affected by the bushfires.

SMALL BUSINESS BUSHFIRE RECOVERY GRANTS

If you're a small business and you've suffered direct damage to your premises or equipment as a result of the 2019–2020 bushfires, you may be eligible for a bushfire recovery grant or a concessional loan.

NSW

The bushfire recovery grant of up to $50,000 is to help pay for costs associated with the clean-up and reinstatement of a small business or non-profit organisation’s operations.

The costs could include, but are not limited to:

Payment for tradespeople to conduct safety inspections

Equipment and materials required for cleaning up

The removal and disposal of damaged goods and materials

Repairing premises and internal fittings

Hiring equipment and/or replacing stock needed to resume operations.

everywhere else. The whole south coast, East Gippsland, the Blue Mountains, northern NSW, Canberra, Kangaroo Island – we need to band together and support each other.”

It’s not often a government receives universal praise for an initiative, but this is what happened when the nation’s leaders unveiled a $76 million recovery package for the sector, designed to encourage visitors into Australia’s regional sector.

Australia’s leading tourism and accommodation advocacy bodies praised the recovery package which will be directed at regional hotels, restaurants, pubs, cafes and local attractions designed to help them get back on their feet economically and provide cashflow support while respective areas recover.

Federal Tourism Minister, Simon Birmingham, said the key message was that Australia was very much open for business and that it was important to get people back to visiting these areas as quickly as possible.

“These bushfires have dealt the biggest reputational blow to our tourism industry that it has ever faced internationally,” Birmingham said.

“Losses caused by cancellations and collapsing booking numbers stretch well beyond those communities directly affected by fire into the many Australian towns that rely on international visitors to sustain tourism jobs.

“We will break from the practice of Tourism Australia exclusively focusing on international visitors and urgently kick off a local campaign because Australians are best placed to immediately understand that most of our country remains as safe to visit as ever.”

And the final message for Australians from within the tourism industry from Lindsay Tytherleigh: “Get back out there! Plan a trip to areas affected by this and spread the word. Use social media. And thank you to those who have helped so far. You are changing lives.” [END]

https://www.service.nsw.gov.au/transaction/apply-bushfire-recovery-grant-directly-impacted-small-businesses

VICTORIA

Grants of up to $50,000 are available to eligible Victorian small businesses that have suffered direct damage as a result of the fires.

Small Business Bushfire Recovery Grants are intended for small business owners to help pay for costs of clean-up and reinstatement of their businesses. Applications are open until 31 July 2020.

https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/small-business-bushfire-recovery-grants-victoria

SOUTH AUSTRALIA

Financial assistance of up to $50,000 is available to impacted small businesses for costs associated with clean-up, restoration and rebuilding. Available funding includes:

An initial amount of up to $25,000 to support an initial claim, with

evidence of the direct damage such as photographs, quotations, tax invoices or official receipts required.

A subsequent amount of up to $25,000 to support subsequent claims, with full evidence of payment required. (This evidence must also include any amounts claimed under the initial claim if not already provided).

https://business.sa.gov.au/South-Australian-bushfire-recovery/Small-Business-Bushfire-Recovery-Grant

QUEENSLAND

Affected small businesses may be eligible for loan assistance up to $500,000. These concessional loans are intended to be used for the purposes of restoring and/or replacing damaged assets such as buildings and replanting and/or to meet working capital expenses such as paying rent, wages and salaries.

http://www.qrida.qld.gov.au/current-programs/Disaster-recovery/special-disaster-assistance/extraordinary-bushfire-assistance-loans


@emptyesky


MARKET ACTIONMARKET ACTION

REGIONAL SALESHit The HeadlinesSOME HIGH PROFILE TRANSACTIONS IN NORTH QUEENSLAND, AND PORT DOUGLAS IN PARTICULAR, HAVE LITERALLY HIT THE HEADLINES NATIONALLY, WHILE TOWNSVILLE’S RESURGENCE WAS CONFIRMED. IT’S NOT ALL ABOUT QUEENSLAND THOUGH, WITH A $10M DEAL IN GEELONG ALSO GRABBING NATIONAL ATTENTION.

HOTEL OPERATOR TARGETS GEELONG

Geelong’s emergence as a major business and leisure destination has been confirmed with the management rights to two major CBD apartment complexes right next to each other changing hands for nearly $10 million.

The 60-unit Vue Apartments & Day Spa has settled while the 127 key Ritz Geelong, which is due for completion in late 2020, has been agreed and is awaiting settlement.

Both were sold by ResortBrokers to Collective Hotel Management which has added to its portfolio of two luxury resorts in Noosa as well as a corporate hotel in Woolloongabba, Brisbane.

“There was a lot of interest in Vue Apartments and the Ritz from experienced operators and syndicates who now realise the serious potential that Geelong possesses for both the business and leisure market,” said Glenn Millar who handled the Vue sale with Trudy Crooks.

Director of Collective Hotel Management Michael Tozer said the two Geelong purchases were a “good fit” with his company’s accommodation assets.

“A lot of people enjoy our leisure products in Noosa, where there is a high expectation for quality service to accompany the quality location,” Mr Tozer said.

“We think Geelong fits in very well with that.”

SILKARI’S BEGINS EAST COAST EXPANSION

One of Australia’s newest luxury accommodation brands has expanded into the tourism sector by picking up the management rights to a high end apartment complex in Port Douglas.

Silkari, a brand created by developer Visionary, has taken over Oaks Lagoons at Port Douglas which was managed by Minor Hotel Group and will rename the property “Silkari Lagoons”. The deal was completed by Glenn Millar and Chenoa Daniel of ResortBrokers for an undisclosed sum.

The property is close to Four Mile Beach and has 175 luxury apartments set in a tropical complex around six lagoon-style pools and is designed for couples and families.

The Port Douglas property becomes Silkari’s third accommodation asset along with the 212-apartment Silkari Suites at Chatswood and Silkwood by Silkari, a 219-apartment and 37-townhouse complex in Pagewood in Sydney's eastern suburbs.

“We see the Port Douglas market as being a good investment and although it has been a bit quiet up there in recent times, we believe the upturn is not far away – maybe six months or so,” said Visionary’s Director of Hotels, Markus Sigmann.

“I really believe this investment is a great addition to our current properties and it fits perfectly with our strategy of concentrating on management rights businesses in CBD areas on the east coast and quality tourism areas,” Mr Sigmann said.

The Lagoons deal follows on from the sale of management rights to another high end Port Douglas

property, the Peninsula Boutique Hotel, which was brokered by Chenoa Daniel.

The management rights for the high-performing property were bought for an undisclosed sum by Mandala Asset Solutions through the Trinity Accommodation Regional Hospitality Fund (TARHF). It was listed exclusively for sale with ResortBrokers with price expectations of up to $6 million.

In recent years, Visionary has walked away from at least two major development plans in the Sydney CBD and on the NSW south coast near Wollongong because of government and regulatory “red tape”.

It sold its $130 million corner block at 110-118 Bathurst Street and 203 Castlereagh Street, which was to be a residential complex, along with halting development of its Avondale resort and spa with a Greg Norman-designed golf course.



MARKET ACTION

Although our full suite of services is more

comprehensive, particular expertise covers:

- Buying & Selling

- Structuring

- Variations

- Renewals

- Establishments

- Licences & Letting Appointments

- Advice on all Body Corporate Issues

- GST, Stamp Duty and Tax

- Exit strategies

- Dispute resolution

- Legal due diligence reports

Management Rights Law SpecialistsAustralia Wide

Contact us today to find out how we can assist you;

P: +61 (0)7 5552 6666

M: +61 (0)417 620 516

E: [email protected]

W: smhmanagementrightslawyers.net.au

Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to

get you the best possible outcome.


TOWNSVILLE GOES BALLISTIC

Our North Queensland Specialist, Des Fagg, scored a full page spread with a photo of himself, and a cartoon, in the Townsville Daily Bulletin after he posted a stellar year off the back of quite a few quiet ones.

A bounce-back in the North Queensland economy has driven demand for accommodation businesses and Des has notched up more than $29 million in settlements and agreed sales in the region in the past 18 months.

He settled on more than $17 million since October 2018 and has more agreed deals on the books worth a total in excess of $12 million.

“The market is definitely improving here in North Queensland and I knew it was only a matter of time before there was a bounce-back,” Des said.

“The local economy is improving and there is good reason to be optimistic about the prospects for jobs, which bodes well for household spending over the next few years, and tourism numbers are showing double digit increases as well.”

Some of the biggest sales included the freehold on the Queens Beach Tourist Village in Bowen for $4.95 million, the freehold on the Cluden Park Motor Inn for $2 million and the management rights for Springbank Urban Village in Idalia which settled for $2.4 million.

The $29 million in accommodation sales is a seven-fold increase from 2014/15 and 2015/16 when the North Queensland economy was at its lowest point in recent history. [END]

Ben Seccombe - Mahoney Lawyers


Contact us today on 07 3221 9149 spranklinlegal.com.au

Integrity. Trust.

Honesty.That’s what we’re about.

Dedicated to property

With experience dealing in a diverse range of transaction and non-transaction based commercial advisory and property work, we want to guide you through the activities that you undertake in the marketplace to achieve that optimal outcome. We listen We respond We deliver

LEGAL

Statutory Remuneration

We are constantly surprised by how few people are aware that the Body Corporate Community Management Act (BCCMA) contains a right to review either:(a) the duties to be carried out under a caretaking services contract; or(b) the salary paid to the caretaker under such a contract.

This right exists regardless of whether or not there is a similar contractual provision in the contract.

The review mechanism is aimed at (and confined to) new agreements (i.e. the first caretaker appointed by a body corporate) and must be commenced within a strict timeframe stipulated by the BCCMA.

It is often the case that caretaking services contracts are drafted by

developers and have little regard to the actual needs of the Scheme. This can result in a disconnect between what is really needed for the Scheme and what the agreement requires. In those circumstances, a duties review can be a good option for bodies corporate and caretaker alike, in that it will align the duties in the agreement with the needs of the Scheme.

Similarly, there is often a disparity between the salary paid to a caretaker and the duties under the agreement. This is where a salary review is useful.

Mahoneys has assisted many caretakers to take advantage of this mechanism where they are significantly underpaid by reference to the duties required of them. In Drift Palm Cove Mahoneys secured a

salary increase of over $85,000.00 per annum for the caretaker – which is still the largest increase ever obtained for a caretaker under this review mechanism.

The review process is complex and there is a particular set of conditions to be satisfied before either party can request a review. If the process is not followed strictly, the right to review can be irretrievably lost.

Caretakers of newly established Schemes are encouraged to consider this option, especially if there agreement does not contain a regular market review mechanism. The statutory right of review could be your only chance to procure a salary increase for the life of the agreement. [END]

REVIEW PROCESS

W O R D S _ B E N S E C C O M B E



Boosting Your Bottom Line

OVERVIEWDavid Pratt has owned the Best Western Southgate Motel for 15 years. He found the opportunity to work for himself and be actively involved in the day to day running of the motel was a rewarding experience.

His work day usually starts at 10am, where he checks in with each and every one of his staff members. Following that he reviews all of the checkouts with reception before moving onto his emails, accounting and general business duties.

Each day David moves around the hotel, checking that the rooms are up to standard and chatting with the guests throughout the property, before heading home at 8pm. He says that running a very successful business and having a great relationship with

his staff and guests is paramount to enjoying his career in the industry.

THE PROJECTDavid partnered with Accommodation Finance Australia to complete a full refurbishment of the motel. This included full renovations of guest’s rooms and bathrooms at the Mount Gambier property. The refurbishment allowed David to give the rooms a much needed refresh and update the property with modern decor and finishes.

THE CHALLENGESDavid notes that one of the biggest challenges of the refurbishment project was his experience with the bank. After 12 months of waiting for an approval and a less than desirable outcome, David looked elsewhere for his finance needs.

THE RESULTSPre-refurbishment, the motel’s competitive corporate rate was $125 - $129 per night. Upon completion of the project, David has been able to increase this rate to $145 - $165 per night. Before undertaking the refurbishment, the Mount Gambier property had an occupancy rate of 55%. This has now grown to a healthy 70% with Monday through Thursday often sold out. As a result of the refurbishments, the Southgate Motel is now recognised as an ideal location for tour groups, with over 50 groups booked over the next 12 months.

This article was written in partnership with Accommodation Finance Australia [END]

HOW A RESPECTED FINANCE COMPANY CAN HELP DRIVE BUSINESS SUCCESS WITH SIMPLE SOLUTIONS.

"MY EXPERIENCE WITH ACCOMMODATION FINANCE AUSTRALIA WAS BRILLIANT. THE TEAM OFFERED EXPERT ADVICE BACKED BY INDUSTRY EXPERIENCE AND COMMUNICATED IN A KIND, COURTEOUS

AND RESPECTFUL MANNER. ACCOMMODATION FINANCE AUSTRALIA'S FINANCE OPTIONS DELIVERED ON EXACTLY WHAT WE WERE LOOKING FOR, AND ALLOWED US TO MOVE FORWARD AFTER A

POOR EXPERIENCE WITH OUR BANK. I WOULD DEFINITELY RECOMMEND ACCOMMODATION FINANCE AUSTRALIA TO ANYONE IN THE INDUSTRY."

BEFORE

David Pratt - Best Western Southgate Motel


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This is your chance to secure the leasehold interest of Quest Apartment Hotel, Singleton, and tap into the massive mining investment currently underway. Showing a healthy operating profit of $685k (Oct 18 - Nov 19), this 35 room property is easy to operate and has strong repeat clientele.

Key features include conference facilities, onsite car parking, fully equipped gym, broadband internet access, local restaurant chargeback, courtyard and a popular BBQ area.

With a long lease providing tenure until 2044, a lucky investor will be able to take over the lease and profit from this lucrative business. Call now to arrange your inspection.

› High demand, apartment accommodation › Easy to operate › Solid ROI offering room to grow › Upturn of mining within region › Strong brand presence within region › Centrally located within close proximity to the

Hunter Valley

OPERATING PROFIT: $685,000 (OCT 18 - NOV 19)

PRICE: $2,700,000

HIGH NET PROFIT BUSINESS IN PRIME HUNTER VALLEY LOCATION

35 24Rooms Years

J A C Q U E L I N E F E A T H E R B Y B R O K E R


Ref // LH006104

S I N G L E T O N

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GOLD COASTThe headline on the Gold Coast has obviously been the effect of the coronavirus and tourism industry data suggests it has cost hundreds of millions of dollars to local businesses overall. I’m hearing accommodation

businesses have undergone a drop in occupancy and I believe a key thing to learn from this is that perhaps we need to look at tapping into tourism markets outside of China.

Overall, the accommodation industry on the coast had a bit of a hiccup during the Commonwealth Games and the debacle that went on there, but it's really bouncing back and the accommodation industry is strong, despite the recent setbacks. There has been a lot of development on the Gold Coast with infrastructure projects like the tram service, but motel sales are few and far between and obviously the caravan parks are pretty well-controlled by the councils and the government.

So they are a little bit difficult to come by. But we are always out searching and looking for opportunities. So if anyone's out

there wishing to market their motel or caravan on the Gold Coast, please don't hesitate to give me a shout. I'll be there as quick as I can to have a chat.

NORTHERN NSWThis area is a different kettle of fish. Obviously we've got the coastal region and we've got the western region. NSW was the hardest hit state during the 2019-20 bushfires and these have impacted businesses, not just accommodation businesses, in the north of the state. The worst period was November and December and the subsequent heavy rain is already creating some rapid regeneration.

You’d think that the bushfires would have affected demand for accommodation businesses, but that’s not the case. We’re still getting

WHY OUR REGION IS SET TO BENEFIT FROMA SURGE IN TOURISM

N O R T H E R N N S W & G O L D C O A S T

W O R D S _ G R E G J A M E S


REGIONAL SPOTLIGHT

high quality enquiries for properties. The coronavirus pandemic has had less of an impact than on the Gold Coast, which is far more reliant on visitors from China.

Generally speaking, on the coastal side of things, things are moving very well because it's just becoming so popular and people simply want to live in northern NSW. The major roads are being done with the highway between Coffs Harbour and Ballina nearly completed. It's still got a year or so to go but once that road's built, we expect a boom right throughout the whole region.

As for Byron Bay, I call it the ‘magic line of Byron Bay’, it keeps spreading out and people are now starting to go to different areas of northern NSW because they understand how beautiful it is, how pristine the beaches are, et cetera.

So, the numbers are up in that area and once that major highway project is completed, that's going to be even more beneficial for the whole area.

Incidentally, take a look at the stats on the growth of tourism in this part of the world (on the next page). In the past five years, total expenditure by visitors has increased by a staggering 70 percent!

NORTH-WEST NSWOut west, and after three long years, the drought finally broke in February and you would not believe the difference the rains have made to the area. Places like Tenterfield, which were really struggling, have gone from dry and dusty to lush and green and the creeks and rivers are running again. The old hands out that way say the drought is not fully broken, but they’re not complaining with some

He covers the Gold Coast and northern

NSW, to Coffs Harbour in the

south and west to Narrabri, and Greg gives his overview

of where the market is at right

now, and where it’s headed.

really good and consistent rain fall really lifting the mood.

The drought did take its toll but the tourist numbers have remained fairly strong and for the operators out in that part of the world, well done for hanging in there! You’re a tough bunch.

Around the Narrabri and Moree areas, the inland rail is coming and there's some big infrastructure spending in the Moree area such as the hospital and the inland rail hub that's getting built. Also in the Narrabri area, being close to Gunnedah, new mines are opening up.

Inverell's very strong in regards to the meatworks there and it's a very big employer in the area. And obviously once more rains come, then the whole area will be uplifted and we can get back to normal trading.


POPULATION & THE DOLLAROne amazing statistic you need to understand in the accommodation industry is that the population of Australia hit 25 million people and that was 17 years ahead of what was predicted. Although a lot of people are moving to the cities for employment, it also means that the population increase is way out of control and those people are going on holidays domestically and, with the Australian dollar the way it is at the moment, they're holidaying in Australia.

What this means is that with the huge boost in population, the number of regional nights are way up. So regional NSW actually accommodates more people per year than the Gold Coast does now. I know that it's a bigger area, but it's still spread out. It's really amazing statistic and they've got to stay somewhere.

FEEL FREE TO GET IN TOUCH ANY TIMEIf you'd like your motel appraised, we're happy to do free appraisals and we can give you some facts and figures and also some hints on how you could possibly improve your business if you want to sell it in the future. Whether it's one year, two years, or four years down the track, we're happy to have a chat, give you the best advice and introduce you to some people that may be able to help to increase your occupancy rates. We try to help everyone, everywhere. And please don't hesitate to give me a shout any time and I'll see you next time I call through your area. [END]

Total domestic and international visitor spend to the NSW north

coast for the year to March 2019

TOTAL SPEND

$4.5b(up by 3.3% YOY)

-

VISITORS

13.2m(down by 0.6%)

-

NIGHTS

26.2m(up by 9.6%)

Amongst the alarming headlines surrounding

the bushfires and coronavirus, it is also important to try and

get some balance and perspective.

s we were putting this edition of Informer together, many parts of Australia

and the accommodation industry in particular was in recovery mode after the 2019-20 megafires. Then the coronavirus pandemic hit.

Not since the GFC in 2007/8 has the industry faced such seemingly insurmountable catastrophes. The fires burned for five months during what should have been the peak season for most operators and any hoped-for rebound in tourist numbers was extinguished by the new virus which forced border closures worldwide including travel to and from our largest tourism market, China.

Summing up the impact of coronavirus, Treasurer Josh Frydenberg said: "The message is very clear, the impact will be more significant than the bushfires, and it plays out more broadly across the Australian economy.”

The International Monetary Fund (IMF) had estimated that the impact on the global economy from

A

NSW VISITOR STATISTICS

Tourism Research Australia

TRENDS 2014 - 2019

International Tourists

Visitors: +36.7%

Nights: + 38.2%

Spend: +70.1%

Domestic Tourists

Visitors: +30.8%

nights: +24.8%

Spend: +48.1%


Tackling the ChallengesHEAD ON!W O R D S _ T R U D Y C R O O K S

the coronavirus would be about 0.1 per cent this year. That doesn’t sound like much but when the IMF downgrades growth from 3.3 per cent to 3.2 per cent, it’s a pretty big deal and it usually affects most people.

Amongst the alarming headlines, it’s also necessary to try and get some balance and perspective. One of Australia’s most highly respected analysts, Deloitte Access Economics partner Chris Richardson, said while there had been a “bunch of bad news” recently, the key drivers of the economy — jobs, iron ore and coal prices, and interest rates — were still holding up pretty well.

This is perhaps the reason why we’re finding that despite the fallout from the bushfires and coronavirus, enquiry levels to buy into accommodation businesses haven’t slowed at all. If anything, these levels are amongst the highest we’ve encountered, especially compared to the same period last year when many buyers were sitting on the fence, waiting for the outcome of the federal election and the banking

royal commission.So the fundamentals

underpinning the economy are still there and confidence in the accommodation industry as a solid business investment remains, which is surprising given the magnitude of recent events.

People are still really keen to get into the industry and one trend we’re finding is that there is real demand for our regional listings which are offering much better yields than the traditional CBD markets.

Places like Townsville and Cairns, which are fantastic lifestyle destinations, have accommodation businesses offering yields of 30 percent and up. Show me any other investment with this ROI. Seriously, let me know.

For example, take the Bega Motel on the NSW south coast. Set in a beautiful town with a net profit of $204k, the leasehold is going for $520k. In Portland, Victoria, a leasehold that costs $380k is producing a net of just under $134k. Motel Traralgon – leasehold price is

$268k and the net is $134k.We’ve listed these ones and

a few other outstanding regional leasehold deals on this page just to give you an idea of just how good the regional businesses are looking as an investment. We’ve got new ones coming up as well so get in touch and we’ll set you up with a bargain. [END]

ON THE MARKET

OUR TOP REGIONAL LEASEHOLD LISTINGS

Victor Harbor City InnSA Victor HarborPrice $500,000 | Net $154,000Broker - Kelli Crouch

Tully Motel TullyPrice $740,000 | Net $221,463Broker - Des Fagg

Motel TraralgonTraralgon, VicPrice $268,000 | Net $134,574Broker - Damien Loorham

Bega MotelBega, NSWPrice $520,000 | Net $203,930Broker -Russell Rogers

Jumbuck Motor InnTenterfield, NSWPrice $620,000 | Net $206,649Broker - Greg James

Melaleuca MotelPortland, VictoriaPrice $380,000 | Net $133.831Broker - Damon Lunardello

Castlemaine Central Cabin & Van ParkCastlemainePrice $650,000 | Net $165,796Broker - Damon Lunardello

Emerald Motel ApartmentsEmeraldPrice $425,000 | Net $154,407Broker - Grant Sulzberger

Salt @ South West RocksSouth West Rocks, NSWPrice $350.000 Net On ApplicationBroker - Jason Vogler


WHY OUR DEALS DON’T FALL OVER AT THE

BC CONSENT STAGEW O R D S _ S T E V E C A M P B E L L

t’s become one of the hottest topics in the management rights industry right now, and

securing body corporate consent for an incoming purchaser has become a major issue which is affecting a lot of deals.

Up until a few years ago, this part of buying a management rights business was virtually guaranteed to proceed without any dramas, usually after a very informal meeting over a cup of tea or coffee.

This has changed completely and these days body corporates are getting lawyered up and the consent meeting can resemble a cross examination of the incoming purchaser.

Body corporate committees are

now increasingly scrutinising the credentials and experience of incoming operators, usually on the advice of their lawyers, and they have every legal right to do so and we respect that.

We’re hearing on the grapevine of some horror stories of buyers being rejected by bodies corporate at consent and, increasingly, a lot of clients/vendors bring this up when we discuss the possibility of listing their business for sale.

“How can I be sure this deal will go through? How do I make sure I don’t waste my time and a lot of money by having a buyer rejected?”

This question I totally understand. Nobody wants to go all the way to the end of the sale process to have the

incoming managers rejected by the body corporate. By this stage of the transaction, the buyer and the seller will have outlayed huge amounts of money on accountants and solicitors, not to mention the time already spent with contracts, due diligence, finance approvals and all while juggling their day to day lives.

Good brokers have recognised the changing expectations of the bodies corporate and have reacted accordingly. Myself and my colleagues at ResortBrokers have developed a system of processes very early on to ensure we don’t put our vendors’ deals at risk when we get to the consent process (I’ll outline this a little further down).

I


BROKERS INSIGHT

Even before we get to the mechanics of what we do to get the purchaser over the line, the first thing I always do is to make sure we get the right buyer for the right deal.

So, if a first time buyer were to phone me up and say ‘I want to buy that business you have listed’, I would find about their background and exactly what they’re looking for and what they’re capable of.

Then I would get them out for a coffee, or similar, and really go through some detail and then work to find a business that’s suitable to the intending purchaser. Some businesses are easy to run and some are more complex. There’s no point in pushing an intending purchaser into something they will not be able to handle.

We certainly don’t discourage or dissuade first time or inexperienced operators. They are the lifeblood of the industry and are vital to its ongoing success and many first timers go on to become outstanding managers.

Once we’ve found a great business that’s the right fit for a purchaser, we then help everybody involved in the deal by ensuring the buyer has some, or all, of the below:

• References - at least two personal and two business references

• Evidence of previous experience - if you have run a management rights business before, obtain a reference from your former body corporate manager

• Business plan - develop this ahead of a potential meeting with the body corporate as it shows you understand how to run a management rights business

• Police checks - increasingly, committees are asking for a police check as part of the assignment process so it is worth obtaining one in advance

• Financial standing – obtain a statement of assets and liabilities through your accountant handling due diligence. They can include this in their fees

• ARAMA Course - the Australian Resident Accommodation Managers Association is the only body that represents the interest of management rights owners and having a certificate that you have completed their Management Right Induction Training Program (MRITP) is very highly regarded

• BCCCM Course - this is a free accreditation in Queensland from the Office of the Commissioner for Body Corporate and Community Management and can be completed online. This is also becoming a

minimum requirement by some, if not all, body corporate committees.

If you do most, or all, of these things a body corporate will have no grounds to reject at consent. This is why our deals don’t fall over.

It’s also important to understand that although it appears “tougher” to get assignment approval as a buyer, this is not always the case especially if you are well prepared for this stage of the deal.

The other thing I often try and encourage is for the incoming purchaser to meet with the body corporate committee or its chairman before the consent application is considered. This is a great way to break the ice and it can be done informally.

The final takeout is we make sure buyers are the right fit and well prepared to take on their new business. We make sure they are flexible and willing to work with the body corporate and when they reach the consent stage, the buyer has demonstrated they are willing to do what it takes to perform above and beyond, they are well trained and qualified to be a great manager in a great industry! As always, If you need help or advice with any of the above, get in touch with us and we’ll talk you through it. [END]


BROKERS INSIGHT

市場信息更新W O R D S _ J A N E F A N G

如何獲得業主委員會批准

方女士 - Jane Fang華人中介電話：(0402) 399 613 電子郵件：[email protected]微信: JaneFang12

石女士 - Jessie Shi華人中介電話：(0422) 935 428電子郵件：[email protected]微信: jessieshi-sw

CONTACT US!

大家可能聽說過購買管理權的買家在交易後期會遇到一些問題，就是有時候業主委員會拒絕新買家或者拖延時間，造成交易最終失敗。 “業主委員會批准”是一個越來越有爭議的話題，但是，在ResortBrokers，我們充分了解與此有關的所有細節和復雜性。過去（兩年）中，在業主委員會同意階段，我們沒有一項交易落空。

原因是什麼呢？就是從一開始，從客戶與我們交談並開始展開新業務時，我們就積極主動地為您打開通道，並在整個過程中為您提供指導。我們確保在您與業主委員會聯系時，他們別無選擇，只能給予您批准並歡迎您加入。

客戶一找到最合適的管理權生意，我們立即就可以使買家直接與最優秀的業內專家聯系，包括金融經紀人、律師、會計師和評估師。您需要這種專業服務，這些人士是管理權專家，而一般的稅務會計師或當地律師肯定不了解此類業務買賣所涉及的復雜性。

作為專業經紀人，我們確保所有關鍵參與者相互交流，並與我們交流，這樣每一方都很清楚交易的進程，並了解下一階段該怎麼做。

這就是為什麼我們的傭金率略高於競爭對手的原因。我們確保整個過程為您順利進行。有了ResortBrokers，就不會有任何困難，不會出現意料不到的問題。在交易成功之前，您不需要支付任何費用。

我們不僅會以您想要的價格出售，而且會努力為您爭取到最高的價格。

為什麼必須選擇ResortBrokers？

很簡單，我們辦事到位，行事有成果。俗話說：“一分價錢一分貨”，就是這個道理。

我們是全國範圍的中介機構。 ResortBrokers是唯一一家專門從事旅遊住宿管理權業務銷售的全國性代理商。

我們辦事有成果。我們的銷售量超過該領域的任何其他代理商。在2018/19年度，我們出售並結算了172個旅遊住宿物業。

我們工作盡心盡力。 ResortBrokers擁有由40名行業專家組成的高度集成的全國性團隊。我們約有50％的銷售是機構內部聯合銷售，從而確保您的業務真正得到全國性的商機。

我們擁有大批客戶群，可以確保將您的業務介紹給有潛在買家的大市場。

我們擁有業內信息最全的網站，提供最廣泛的在線業務商機。我們的網站設計經過全面優化，具有針對性的搜尋引擎，可將您的業務展示在線上潛在買家的面前。

基於我們成功出售管理權的優良業績以及數十年的豐富經驗，我們確保客戶的業務取得最佳成果。寬泛的行業知識、旺盛的精力以及熱情的客服，使我們的團隊實力強大。



LEGAL

NEW RESIDENTIALtenancy laws for NSWW O R D S _ C O L M Y E R S

ll building managers conducting permanent letting need to take note!

Changes to the residential tenancy laws in NSW start on 23 March 2020.

WHAT ARE THE CHANGES?According to the NSW Government, the changes are designed to improve tenants’ renting experience while ensuring landlords can effectively manage their properties.

The changes also aim to reduce disputes over repairs and maintenance, increase protection and certainty for tenants, and clarify the rights and obligations of tenants and landlords.The key changes include:

1. Minimum standards to clarify ‘fit for habitation’Landlords are currently required to provide the rented property in a reasonable state of cleanliness and ‘fit for habitation’. The changes introduce 7 minimum standards which clarify the meaning of ‘fit for habitation’. They are:(a) Structurally sound property;

(b) Adequate natural or artificial lighting in each room, except storage rooms or garages;(c) Adequate ventilation;(d) Supplied with electricity or gas and has adequate electricity or gas outlets for lighting, heating and appliances;(e) Adequate plumbing and drainage;(f ) Connected to a water supply service or infrastructure for the supply of hot and cold water for drinking, washing and cleaning;(g) Contains bathroom facilities, including toilet and washing facilities, which allow user privacy.

All NSW landlords will need to ensure that their rented properties meet the minimum standards to be fit for habitation by 23 March 2020.

These standards must be met at the start of each tenancy and must be maintained throughout the tenancy (by way of repairs).

2. New smoke alarm obligations for landlordsFrom 23 March 2020, all NSW landlords will need to ensure that smoke alarms installed in the rented

A

property are in working order. A penalty will apply for landlords who fail to comply.

3. Changes of a ‘minor nature’Tenants are currently allowed to install fixtures or make alterations, additions or renovations if they have the landlord’s written consent, or if the residential tenancy agreement permits it. If the tenant’s request for a fixture or alteration, addition or renovation is of a ‘minor nature’ then the landlord must not unreasonably withhold consent. The tenant must pay for the fixture they install or for any alteration, renovation or addition to the property that they make, unless the landlord agrees otherwise.

4. Damage and removing modifications

Tenants are still responsible for any damage they cause to the property. The existing requirements on liability for damage and removing any alterations, additions, renovations or fixtures still apply.

At the end of the tenancy, a tenant is responsible for leaving the property in the same condition as at the start of the tenancy, except fair wear and tear. This includes making sure any alterations, additions or renovations are removed and also fixing any damage caused to the property. A tenant can choose whether to remove any ‘fixtures’ they have installed, provided they repair or compensate the landlord for any damage caused by removing the fixture. A tenant cannot remove any fixtures if the landlord paid for them.

Landlords may apply to the NSW Civil and Administrative Tribunal (the Tribunal) to seek compensation from the tenant for the costs involved if the work is not done to a satisfactory standard, or if the work is likely to adversely affect the landlord's ability to let the premises to other tenants if it is not corrected.

5. New mandatory set break fees for fixed term agreementsMandatory set fees when a tenant breaks a fixed-term agreement early will apply to all new fixed term agreements that are 3 years or less.


LEGAL

This applies to agreements that are entered into from 23 March 2020 onwards.

The break fees are:• 4 weeks’ rent if less than 25% of the

lease had expired;• 3 weeks’ rent if 25% or more but less

than 50% of the lease had expired;• 2 weeks’ rent if 50% or more but less

than 75% of the lease had expired;• 1 week’s rent if 75% or more of the

lease had expired.Using the example of a 12 month

tenancy agreement, a tenant would only be required to provide two weeks’ rent to their landlord (that is, an amount equal to two weeks’ rent) to end their agreement early, if 7 months (or 58%) of the agreement had expired.

6. Strengthened information disclosure requirementsA landlord or agent must not make false or misleading statements or knowingly conceal certain material facts from a prospective tenant before they sign an agreement.

Before signing an agreement, a landlord or agent must also tell a tenant of any proposal to sell the property if the landlord has prepared a contract for sale, or if a mortgagee (ie bank or other lender) is taking Court action for possession of the property.

7. New material factsIn addition to the current material facts, from 23 March 2020, a landlord or agent will also need to disclose if the property:• has been used for the manufacture

or cultivation of a prohibited drug or prohibited plant in the last 2 years;

• is in a strata scheme where scheduled rectification work or major repairs will be carried out to common property during the fixed term of the agreement;

• is part of a building to which a:• notice of intention to issue a fire

safety order, or a fire safety order, has been issued requiring rectification of the building for external combustible

cladding, or• notice of intention to issue a building

product rectification order, or a building product rectification order, has been issued requiring rectification of the building for external combustible cladding, or

• development application or complying certificate application has been lodged for rectification of the building for external combustible cladding.

8. New information to be disclosed to prospective strata tenantsFrom 23 March 2020, before a tenancy agreement is signed, a landlord or agent will need to give a tenant a copy of the strata scheme’s by-laws. They will also need to inform the tenant if a strata renewal committee is currently established for the scheme. These

changes provide greater protection for prospective strata tenants and are additional requirements to the general disclosure obligations.

9. Remedies for tenants for breaches to information disclosure obligationsFrom 23 March 2020, a tenant will be able to end their tenancy agreement by giving at least 14 days’ notice if the landlord or agent fails to comply with any of the information disclosure obligations. A tenant can also apply to the Tribunal for an order to end the tenancy. The Tribunal will also have the discretion to order the landlord to compensate the tenant for any costs incurred as a result of ending the tenancy agreement.

10. Water efficiency measuresFor a landlord to be able to pass on water usage charges to the tenant, the residential property must be separately metered, meet the water efficiency measures, and the charges must not

exceed the amount payable by the landlord (according to the water supplier’s bill or other evidence).

11. New standard form of agreement

The standard form of agreement has been updated to reflect the rights and obligations between landlords and tenants under the new laws.12. New condition report

The condition report has been updated to reflect the new laws, including the minimum standards and smoke alarm requirements.

13. Other changes Include• rent increases for periodic (continuing) leases will be limited to once every 12 months;

• a new definition for separately metered to reduce disputes between tenants and landlords about who pays for electricity, gas or water usage charges;

DO THE LAWS APPLY TO EXISTING RESIDENTIAL TENANCIES?Some of the new laws will not apply to existing agreements entered into before 23 March 2020. For example:• new mandatory break lease fees only

apply to new fixed-term agreements that are 3 years or less;

• new landlord information statement requirements only apply when entering into a new residential tenancy agreement;

• new requirements around condition reports apply when the tenancy agreement is given to the tenant for signing;

• new information disclosure obligations apply before entering into a new residential tenancy agreement.

Liability limited by a scheme approved under Professional Standards Legislation. Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice. [END]

The changes aim to reduce disputes over repairs and maintenance, increase protection and

certainty for tenants, and clarify the rights and obligations of tenants and landlords.


BROKER PROFILE

HOW, AND WHEN, DID YOU COME TO WORK AT RESORTBROKERS?It was absolutely by a chance introduction. My first role in the accommodation industry was nearly 30 years ago in 1991. I have been in the industry the whole time with the exception of four years where I ventured into residential real estate in the early 2000s. I had dealt with ResortBrokers for a number of years in my role as National Operations Manager at both Quest and the CEM Group for numerous acquisitions and sales. I was introduced to (Chairman) Ian Crooks and six months later I was with ResortBrokers. WHAT DO YOU SPECIALISE IN?I specialise in all accommodation leaseholds, freeholds and freehold going concerns with a particular focus on motels and caravan parks across Melbourne and western Victoria. I am also a specialist broker for Quest Apartment Hotels in Victoria and Tasmania. My extensive experience in hotel operations and business

transactions puts me in an ideal position to advise my clients on preparing their businesses for sale. I am also able to provide useful tips and advice to my purchasers having been directly involved in dozens of acquisitions.

HOW DOES YOUR MARKET LOOK RIGHT NOW?Whist acknowledging some operators are saying it has been a tough year, there are many who say it has been their best year ever. The fact is there has been a 11.5 percent growth in overnight domestic visitor spend and 12.8 percent growth in actual number of overnight domestic visitors. There has also been a significant growth in the international visitor market also with a six percent increase in dollars spent and 4.4 percent growth in the number of international visitors.

Cancellations from the recent bushfires have hurt many of our Victorian operators this summer. As I travel around the state talking to hotel, motel and park operators, it is very heartening to hear the positivity and resilience coming from many of them.

I have also observed a huge increase in enquiry for hotel/motel businesses and freehold going concerns over the summer compared with last summer. The economy has settled, as has the political landscape (for now). Purchasers seemed to have come to accept the increased levels of scrutiny from lenders as ‘the norm’ going forward. They (purchasers) are now enquiring with a greater level of confidence than last year. WHAT MAKES YOU TICK? WHAT DO YOU DO ON A TYPICAL WEEKEND?My family.

A typical weekend for my wife and myself revolve around our two teenage girls. We both feel like Uber drivers taking our girls to numerous sporting activities including netball, ballet and tennis not to mention the trips to get them to their casual jobs on time and their weekend parties. Our passengers don’t pay though! Truthfully, we wouldn’t change it for the world. IF YOU COULDN’T WORK AT RESORTBROKERS, WHAT WOULD BE YOUR IDEAL JOB?I have my ideal job. I am in an industry that I love and cannot imagine working outside of the hospitality environment. I must say that one of the best gigs I had was as a ‘mystery guest’ going and reviewing the accommodation, food and beverage outlets and health spa for a very high end international hotel group. It didn’t pay, but it was fun. IF YOU COULD INVENT A TIME MACHINE AND GO BACK 20 YEARS WHAT WOULD YOU TELL A YOUNGER DAMON?

I would tell myself to invest now! There is never the perfect time. I have seen hundreds of people back themselves and go out and make their fortune. I constantly take my hat off to them. [END]

After nearly 30 years in the hospitality industry, including 20 years in middle and senior management roles, there is one word that sums him up and that is ‘passionate’. Meet our Victoria Specialist and ‘part time unpaid Uber driver’, Damon Lunardello.

Damon LunardelloM E L B O U R N E A N D W E S T E R N V I C T O R I A


ongratulations. You have read the title of this month’s missive and you

are still with us. Well done. A less engaged reader would have switched off immediately and grabbed a copy of Who weekly. Surely more entertaining to learn that Brad and Angelina are splitting, and Prince Harry is in fact an alien. You couldn’t make that stuff up!

But I digress. Back in the day I worked for a bank and from time to time had the dubious pleasure of managing teams of people. I also had the even more dubious pleasure of being managed by a range of more senior but, in some cases, no more competent senior managers. In those less troubled times sales targets were all the rage with one’s performance judged more or less on how much money you could lend and how many other bank products you could flog in the process.

The idea was that those who could sell the most made the most money and could look forward to at least a year’s worth of job security, until the next annual performance review. The poor souls who couldn’t sell to save themselves were placed on performance management. This process was meant to help them focus on the task at hand and achieve the results expected of them. That is,

sell more product. In many cases the senior manager overseeing the process couldn’t sell water to a dying man and as a result was of no mentoring benefit whatsoever.

The result in most cases was that the employee was placed in a highly stressful situation and feared for their job security. It doesn’t take a genius to work out that people who are stressed out of their minds and facing the prospect of losing their livelihood don’t always perform particularly well. The end result was often the self-fulfilling prophecy. Performance under the performance management model deteriorated and no one had a win. The staff member leaves (or is asked to leave) and the organisations loses a person they have invested heavily in. The ripple effect on other staff is poisonous in terms of morale and loyalty.

This whole experience had led me to question the competing merits of competitive stress versus job security. On the one hand there are those who will argue that having to meet targets annually or lose your job leads to high performance. Others will say that offering job security first is the more likely driver of positive outcomes for both employees and organisations.

A large and growing body of research suggests that high pressure

cut-throat organisational cultures result in lower productivity and that a positive work environment and security of tenure are key contributors to improved outcomes and bottom line results. Research undertaken by the Queens School of Business and the Gallup Organisation reflects quite startling falls in productivity and profitability in organisations with low job security and employee engagement. A key statistic is the fall in loyalty that results from an insecure workplace. The University of Warwick found that happy employees result in a 12% spike in productivity.

My personal experience is that staff with a strong sense of job security, a clear understanding of their role and responsibilities and a positive relationship with management simply perform better than those on the “only as good as your last 12 months” treadmill.

Here’s the mystery for me. The research confirms that security of tenure, combined with clear performance expectations (and clear remedies), together with a positive management relationship leads to better outcomes. So why do some Body's Corporate seem so determined to create the opposite dynamic.

W O R D S _ M I K E P H I P P S

FINANCE

The Physiology of Tenure

C


Yes, I know resident managers are contractors but that’s just semantics. Ultimately an employee/employer relation exists in all but name and the same lessons apply.

Want your resident manager to be stressed, inefficient and distracted? What them to charge for every little thing they can get away with? Want them to feel financial pressure from their bankers? Simple. Just say no to that next top up request and the ugly outcomes will take care of themselves.

And it gets better… as the agreement term drops the business value follows suit and the business becomes less appealing to high performing managers. Only the fringe dwellers and vultures will be interested so once the manager’s nervous breakdown takes hold the

business will doubtless be sold with a few years left on the agreements and a new manager in a hurry to recoup capital will take over. Sounds like a great plan !

Here’s a better idea. Set expectations from the outset, ensure the agreements have appropriate remedies for poor performance and give your manager some long-term job security. Yes, you will add value to the business if you approve a term extension and there are certainly people out there who will vote No just out of spite. I’d like to think those owners are in the minority and most would have the business nous to understand the value add that a manager with security of tenure provides to a scheme. It’s a two-way street.

In closing a word of advice to

resident managers. When I worked for the bank, I would occasionally raise the courage to ask for a pay rise. I always made sure I was shooting the lights out in terms of my performance and attitude before making the approach and I made that performance a consistent behaviour. If you are going to ask for an agreement top up may I suggest you do the same. Too many managers report that a top up has been declined because they didn’t try hard enough to lobby owners. In my mind the lobby process is ongoing and should be reflected in everything you do, every day.

I’ll leave you with this quote (below) from Ha-Joon Chang, a South Korean economist who is well worth looking up for his insightful observations on the relationship between economics and self-worth. [END]

"The feeling of insecurity is inimical to our sense of wellbeing, as it causes anxiety and stress, which harms our physical and mental health. It is no surprise then that, according

to some surveys, workers across the world value job security more highly than wages."


S

WORD OF MOUTHT H E R E ’ S N O T H I N G Q U I T E L I K E C O M M E N T S F R O M P E O P L E W H O ’ V E U S E D O U R S E R V I C E S T O H E L P Y O U G E T T O K N O W U S B E T T E R . S O W E T H O U G H T W E ’ D L E T O U R C U S T O M E R S D O T H E T A L K I N G . H E R E ’ S W H A T T H E Y ' R E S A Y I N G A B O U T T H E T E A M A T R E S O R T B R O K E R S .

We have recently sold the lease of our motel. The timing and information provided by Des Fagg and ResortBrokers, in general, was of the highest standard. This is the second time we have engaged ResortBrokers as agents in the motel business. On both occasions, their professionalism and ease of contact made the sale process relatively simple and beneficial for us. We would not hesitate to make them our first port of call in the future.

K R I S H A N S E N - V E N D O RCOLLINSVILLE MOTEL LEASEHOLD

Thanks Gareth Closter for all your help with purchasing our Management Rights. You are an extremely helpful agent with a meticulous attitude, service and patience. During the journey of the past few purchases, we have become friends. We appreciate your honesty and frankness as well as your supportive professional advice and suggestions. We look forward to working with you in the future.

MICHAEL & ALICE CHANGP A R K S I D E O N F O L K E S T O N E , S K Y L I N E & G R E E N W I C H A T N E W F A R M

Jacqueline Featherby was ever effervescent and positive, helpful and kind. The professionalism Jacqueline upheld

was fantastic and she guided both us and the vendors through this process, being the "piggy in the middle" for all correspondence and communication with solicitors,

brokers, accountants, vendors and purchases - well done Jacqueline and thank you!.

M I C H E L E & P E T E R - B U Y E R H A W K S N E S T M O T E L

We’re always on the lookout for new acquisitions and we rely on ResortBrokers to present us with the best opportunities on the market. When you deal with Tim Crooks and Alex Cook, you are getting a highly motivated and energetic team whose experience and professionalism ensure the whole buying process is seamless.

M I C H A E L M U R T A G H – G MULTIQA HOTELS & RESORTS

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SOLD PROPERTIESR E S O R T B R O K E R S H A S R E C O R D E D A N O T H E R G R E A T Q U A R T E R A N D S I N C E T H E S T A R T O F T H E N E W Y E A R , T H E P H O N E S H A V E B E E N R I N G I N G O F F T H E H O O K . H E R E ’ S A S N A P S H O T O F S O M E O F T H E P R O P E R T I E S W E H A V E S O L D A N D S E T T L E D .

M A N A G E M E N T R I G H T SKirra, QLD

L E A S E H O L D M O T E LArumpo, NSW

F R E E H O L D M O T E LTownsville, QLD

M A N A G E M E N T R I G H T SLabrador, QLD

M A N A G E M E N T R I G H T S South Brisbane, QLD

L E A S E H O L D M O T E LHawks Nest, NSW

M A N A G E M E N T R I G H T SCairns, QLD

F H B A C K PA C K E R SAyr, QLD

L E A S E H O L D M O T E LBiloela, QLD

M A N A G E M E N T R I G H T SBowen, QLD

F R E E H O L D M O T E L Cardwell, QLD

F H C A R AVA N PA R KTownsville, QLD

F R E E H O L D M O T E LGracemere, QLD

M A N A G E M E N T R I G H T SSurfers Paradise, QLD

S E R V I C E D A P T SRockhampton, QLD

M A N A G E M E N T R I G H T SRuncorn, QLD

L E A S E H O L D M O T E LSt Helens, TAS

F R E E H O L D M O T E LCardwell, QLD

M A N A G E M E N T R I G H T SAirlie Beach, QLD

M A N A G E M E N T R I G H T S Robina, QLD

F R E E H O L D M O T E LBatesman, QLD

FA R M S TAYCedar Glen, QLD

M A N A G E M E N T R I G H T SCairns, QLD

M A N A G E M E N T R I G H T SSurfers Paradise, QLD

M A N A G E M E N T R I G H T SBiggera Waters, QLD

M A N A G E M E N T R I G H T SRobina, QLD

M A N A G E M E N T R I G H T SScarborough, QLD

M A N A G E M E N T R I G H T SSouth Brisbane, QLD

M A N A G E M E N T R I G H T SPort Douglas, QLD

M A N A G E M E N T R I G H T SNerang, QLD

F R E E H O L D M O T E LMareeba, QLD

M A N A G E M E N T R I G H T SMelbourne, VIC

M A N A G E M E N T R I G H T SBrassall, QLD

M A N A G E M E N T R I G H T SHamilton, QLD

M A N A G E M E N T R I G H T SBilinga, QLD

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0422 208 450

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AUSTRALIA’S BEST ACCOMMODATION INVESTMENT SHOWCASE 97_low res.… · Tumbarumba Motel is an established, well-run business that offers solid returns and an ideal lifestyle for an