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Modern motel with solid summer bookings goes on the market
Modern motel with solid summer bookings goes on the market for sale
A high-performing motel in Northland’s
busiest tourist-town has been placed on the market for sale
– with the opportunity for a new owner to be running the
business over the lucrative-yielding summer season.
The Dolphin Motel in Central Paihia is a 10-unit accommodation business which has been operating successfully for 22 years under the same owners who are now selling up and retiring.
The accommodation portfolio features four studio units sleeping two or three guests, four one-bedroom units, and three two-bedroom units. Rack rates for the motel range from $155 to $450 – with the property averaging an annual occupancy level of 67 percent.
The motel sits on 1011 square metres of land and encompasses a one-bedroom manager’s unit and office. All accommodation units feature their own kitchenettes with cooking hobs and microwave, dishwasher, refrigerator/freezer, and access to a shared commercial-grade laundry room. There is on-site off-street car parking for 15 vehicles.
The Dolphin Motel land, buildings and business are being marketed for sale at auction on December 3 by Bayleys Real Estate. Salesperson Paul Dixon said that a potential and negotiable one-month settlement date after auction could allow any new owner to take over the business early in the new year and benefit from the summer holiday period.
“The motel already has strong advance booking numbers through until Easter in April – thereby delivering an instant cash-flow to any new ownership. This is a far more attractive option than taking on a tourism-reliant business over the quieter winter months,” Mr Dixon said.
“A regular and comprehensive maintenance schedule has been the cornerstone of Dolphin Motel’s annual operations calendar, so all buildings, interiors, and furnishings are in pristine condition – meaning the motel can run at capacity right throughout summer without the need to take any room inventory out of the pool.”
The Williams Road property is located some 120 metres from Paihia CBD, and a further 130 metres from the beach under a commercial zoning.
“This handy central location is one of the attractions for many guests booking into Dolphin, who can walk to and from the town’s numerous food and beverage or retail outlets,” Mr Dixon said.
Mr Dixon said Dolphin Motel utilised a
franchised website and bookings system, which also supported
other IT-related operations software.
“Essentially, this allows the business to be confidently purchased by someone from outside the accommodation services sector, as the software is as easy to learn as a running a basic spreadsheet,” Mr Dixon said.
“Or if someone with industry experience is interested, the current IT contract can be maintained through until the end off the financial year, and a more standalone approach could then be taken.”
Mr Dixon said Paihia’s economic calendar was
divided into the summer and summer-
shoulder periods
which recorded high numbers of domestic
free-independent-
travelers and international guests off
the cruise ships, and the more domestically-focused
autumn/winter quarters where guest nights were predominantly
filled by weekend bookings from Aucklanders.
“A number of competing accommodation properties in Paihia have chosen to take profits out of their businesses over the past decade when times were good. In contrast, Dolphin has re-invested a considerable portion of its profits back into its operations through maintenance and marketing,” Mr Dixon said.
“That strategy has paid off - with the property consistently now recording above-average occupancy rates compared to other hotels and motels in the Bay of Islands which have, in effect, become run-down.
“Dolphin has also maintained its rates above average yields for the sector, again, justifying those rates through the quality of the premises and room interiors.”
ends
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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