Great Starter Motel Lease in Waikato NZ For Sale

Business description

Rosetown Motel is a great opportunity for first-time motel operators. It’s the right size, the right price, in the right place and with all the right connections.

Ideally situated on State Highway 3 at the Southern entry to Te Awamutu (it’s the first motel that north-bound travellers see), Rosetown Motel comprises:
- 9 spacious, self-contained ground floor motel units: 7x1 bedroom and 2x2 bedroom
- Great flexibility, with units sleeping 2, 3, 4, or 5 persons
- Off-street parking directly outside units
- Parking for large vehicles (coaches, trailer units etc)
- Swimming pool, Barbeque setting and private Spa Pool
- Generous 3 bedroom managers’ accommodation with sunny living areas and views to the mountains
- Motel Kitchen and Laundry ( 3 machines) separate from Managers’ accommodation
- Purpose-built Motel Office separate from managers’ accommodation under camera surveillance
- Ample storage areas.

The buildings are some 30 years old but are well-maintained and attractive (the Managers’ accommodation could use re-decorating).Facilities in all units include:
- Cooking facilities
- Sky TV (4 channels) and Freeview (15 channels)
- Fridge
- Convection heating
- Individual Electric hot water supply
- Hairdryer
- Use of Motel laundry
- Iron and ironing board
- Wireless Internet Access

The business is sound with excellent systems in place.

A detailed Operations Manual will make settling in easy for the new owners. The Motel is easily run by a couple with occasional casual help in peak periods. The regular part-timers are local and experienced. Motel minders are also available to enable the managers to get away on holiday.

Rosetown Motel is a member of the Host Accommodation system, bringing regular and repeat clientele. It is also mentioned in the Lonely Planet Guide.

The clientele is a useful mix of corporate, tourist and family. The large vehicle parking area makes it particularly attractive to regular truckies, rowers, boaties, horsey types and motorsport participants, all of whom are drawn to events in and around Te Awamutu.

The current owners have earned a Qualmark 3 Star Plus rating (the only Qualmark rated motel in the area) and embrace sustainable tourism practices.

There is potential to grow the business. The 2-bedroom units could be converted into 4 studios. In addition the vacant land alongside the Motel (on separate title but included in the Lease and currently used for large vehicle parking) might be converted to an RV park, a backpackers, or additional motel units. (No resource consents have been sought for such developments).

Major developments such as a new dairy factory at Arapuni, a new shopping complex in Te Awamutu and annual dairy factory maintenance promise to bring sustained business to the motel.

The lease expires in 2036 (27 years to run) with 2-yearly rent reviews – the next review is November 2010. The current rent is $60,000 pa plus a maintenance fund contribution of $3000 pa.

About Te Awamutu
The Motel is on a major route for travelers going south from Auckland or Hamilton, or north from Taranaki and the Central Plateau. It is centrally located to many other towns including Hamilton (30 km N), Cambridge (25 km NE), Otorohonga (30 km SW), and Raglan (50 km NW). Hamilton Airport and Mystery Creek Events Centre are some 20 km drive away.

Te Awamutu, The Rose Town of New Zealand, is a vibrant rural community in the heart of the Waikato. It services the surrounding farming communities and is the council seat for the Waipa District. The population, including Kihikihi and the surrounding rural area, is 14,000.

Te Awamutu hosts many local and national sporting events at facilities including the Trust Waikato Swimming and Events Centre, the Kihihiki Speedway, domain and equestrian facilities, and the Te Awamutu Sports Club.

Local attractions include Te Awamutu’s world-renowned rose gardens; heritage walks; reserves and parks; Maungatautari Ecological Island; Mounts Pirongia, Kakapuka, and Wharepapa (some of the best rock climbing areas in New Zealand); and the famous Waitomo Caves.

There are half a dozen top-class golf courses nearby. Lake Karapiro is handy. And of course, Te Awamutu is the home town of music stars Tim and Neil Finn, of Crowded House and Split Enz fame. A visit to their old haunts on the “Finn Trail” and the “History Never Repeats” Exhibition at the museum are a must.

Property information

Real Estate:

Lease

Lease terms:

Expires 24/11/2036

Leasehold rent:

$60,000 per annum