One of the Largest Leasehold Motels in NSW Hits the Market

by Matt Davidson 16th of April, 2024

One of the Largest Leasehold Motels in NSW Hits the Market

Tourism Property are offering the leasehold interest of the Country 2 Coast Motor Inn Coffs Harbour.

Adjoining the iconic Big Banana, this renovated motor inn offers 52 rooms and apartments and sits on close to 4 acres.

Formerly known as Country Comfort Coffs Harbour, the business is being offered for sale by Expression of Interest, closing Thursday 16th May 2024.

The property has benefitted from significant recent investment, with the current owners undertaking a constant upgrading scheme over their 7 year tenure.

Exclusive broker Matt Davidson described the motel as “a rare opportunity of this size and scale”.

“Leasehold motels are most often 15 to 25 rooms, which is an ideal business size for a couple to own and operate. It is extremely rare to see motel leases with a $2.0 million annual turnover and this unlocks the proper scale for syndicates and investment funds to operate the business under a management structure.

Davidson continued:

“The variety of room types here is key – the motel is able to cater to all types of travellers, including coaches and large sporting groups, which are a regular occurrence. The rooms range from the entry-level Comfort rooms and the extremely popular Pet Friendly rooms, through to renovated Family and Executive rooms, plus there are 12 apartments at around 70 square metres each”.

The motel offers a large pool and tennis court, plus ample parking for cars, busses, heavy vehicles and machinery, while the 70+ seat restaurant directly adjoins the Reception area, allowing for very efficient staffing. The bar features an outdoor covered balcony, plus two large hardwood decks overlooking the swimming pool.

The 65% occupancy and $130 average daily rate (excl GST) leaves room for some upside, particularly with some new photography and a marketing push, according to the marketing materials.

Coffs Harbour has long been considered a convenient stopover point between Sydney and South East Queensland and exclusive broker Matt Davidson expects this to continue after the very long-awaited M1 bypass.

“This mega-project is already delivering a huge economic impact and strong accommodation demand for local motels. When completed, the M1 Bypass will change the motel landscape in Coffs Harbour for the better with a dramatic reduction in noisy heavy vehicle traffic – which is obviously a huge benefit for the motels on the current highway. Some of the older motels are ear-marked for residential redevelopment as well, so we expect a strong trading environment for the remaining Coffs Harbour motels that are kept in good condition”.

Davidson concluded:

“Leasehold motels on this scale are extremely rare. We’ve had some really good interest already from small investment funds and syndicates. We feel there’s also an opportunity for an extended family to own and operate the motel, with the 2 separate residences.”

There is a long lease in place and a full staffing structure ready to continue in the business. The current owner is prepared to offer an extended transition period and stay on to manage the business for up to 2 years.

Marketing for the Country 2 Coast Motor Inn Coffs Harbour has commenced, with offers set to close Thursday 16th May.

Tags: small business for sale motel nsw