Nelson business for Auckland house price
Units within Fountain Resort Motel at 77 Green St, Tahunanui, Nelson.
A popular Nelson motel complex, which had this season’s trading figures boosted by visitors to the Cricket World Cup and an exceptional Nelson summer, has been placed on the market for sale as a freehold property and going concern business.
Gill Ireland of Bayleys Nelson says that after eight successful years at the helm of the Fountain Resort Motel at 77 Green St, Tahunanui, the owners have decided to sell up “lock, stock and barrel” for an asking price of $1,595,000.
“This opens the door for a forward-thinking new owner who will recognise the inherent value of such a property and business proposition in sunny Nelson,” Ireland says.
“With 36 Auckland suburbs now having an average house price of more than $1 million, and some edging closer to $2 million, a comprehensive Nelson home and business package with future upside is a value-for-money lifestyle option for an enterprising buyer.
“Aucklanders would be staggered to see what their money can buy in the Nelson region.
“For the price of a home in one of Auckland’s preferred suburbs, this 12-unit motel property with all its facilities is on offer along with a large standalone three-bedroom family home - all on an underutilised 4047 sq m residentially-zoned site less than half a kilometre from Nelson’s famed Tahunanui Beach.”
The motel complex has undergone an extensive refurbishment which has included the creation of a conference room with integrated kitchen and bathroom facilities.
“This allows for convenient on-site meetings and presentations for smaller groups, and extends the appeal of the sales offering.”
Ireland says the motel business has a strong repeat and referral customer base and is trading profitably with solid future bookings up to 12 months ahead.
“Ten months out and the motels are already fully booked for the New Zealand Hockey Federation’s masters’ hockey tournament next year,” she says.
Hosting rights for 2016 have been awarded to the Nelson Hockey Association for the tournament running from February 28 to March 5, 2016.
In addition to housing a successful business, the property is a prime future redevelopment opportunity waiting to happen.
Ireland says additional units could be built on the site to extend motel accommodation options or a buyer might see value in constructing an apartment building and unit-titling this - along with unit-titling the motel units.
“Affordable housing is at a premium across most regions in New Zealand. With many people choosing to downsize for practical and financial reasons, along with a rise in single-person households across the country, modest accommodation options are finding favour.”
There motel units comprise a mix of studio, one-bedroom and two-bedroom units. The owner’s residence is a large standalone three-bedroom, two-bathroom home with a garage and workshop.
“A mini-gymnasium, swimming pool and extensive children’s play area have made Fountain resort a popular destination for holidaying families,” Ireland says.
Ireland said prospective purchasers looking at a business opportunity will be encouraged by the incremental increases in turnover – particularly in the last three years of trading.
“The motel is very well-maintained as the current owner is a builder who has looked after the property fastidiously.
“The business trades well all-year round as the motel is located near to the Tahunanui sports ground and caters for school and other tournaments, and benefits from regular travelling representative business booked through an affiliate, the ASURE Accommodation Group.
The swimming pool at the Fountain Resort Motel.
“Tony and Ngaire Small, the owners of Fountain Resort, are foundation members of the ASURE which is a 50-strong network of privately-owned and operated motels and motor lodges from Kaitaia to Invercargill. It offers members a referral system, third party loyalty partners and joint marketing benefits.”
Ireland says there is a general feeling of positivity across the Nelson region and the upbeat New Zealand economy as whole over summer months has impacted favourably on the bottom line of many hospitality-based businesses.
“The 2014/2015 summer has been a good one for the region as reflected by the latest Paymark figures which show Nelson topping the country in spending in March with a 9.4 per cent value increase.
“On top of this, the latest Statistics New Zealand figures reveal that the Nelson-Tasman region experienced an enviable 17 per cent increase in domestic visitor nights during February this year compared to February 2014. The national average was just 2.5 per cent.
“We would expect the March figures to be strong, too, given that Nelson hosted three matches in the ICC 2015 Cricket World Cup.
“Nelson has one of the sunniest climates of all major New Zealand centres, earning the nickname 'Sunny Nelson' with an annual average total of over 2400 hours of sunshine.”