Rotorua holiday park waits for new owner
Entrance to Holdens Bay Holiday Park which is for sale at 5 & 21 Stonebridge Park, Rotorua.
Holdens Bay Holiday Park, a popular Rotorua budget accommodation and recreational venue has been placed on the market for sale as a freehold property and going concern business.
The land and buildings comprising the park are in a residential area east of the city, close to the waterfront of Lake Rotorua and are being sold by Rotorua Lakes Council.
Bayleys Rotorua salesperson Mark Slade and colleague Mark Rendell are marketing the holiday park for sale by auction to be conducted at 1 pm on Thursday May 14 on the first floor of the BNZ Partners Business Centre, 1202-1212 Amohau St, Rotorua.
Slade says the location and amenities of the holiday park make it a popular accommodation choice with both national and international visitors and an appealing investment for an astute buyer.
“The business is only 800 metres from the lake edge, 1.9 km from the airport, 7.6 km from Rotorua’s central business district and only a few minutes’ drive to numerous tourist attractions like hot pools, the luge and Rotorua’s famous redwood forest,” Slade says..
“The park combines the sought-after features of an accessible location, well-maintained buildings, and park-like grounds next to Waingaehe Stream.”
Slade says the council bought the property from a private owner in 2007 to facilitate airport runway extensions and civil aviation safety provisions. “It has now been identified as surplus to needs, with money from the sale expected to go towards reducing the council’s current debt level.”
The well presented property, with a capital valuation of $1.62 million, comprises 16,000 sq m of grounds and includes manager’s accommodation,12 motel units, 21 cabins, 50 powered camp sites, fully fenced outdoor swimming pool, hot pools, children’s play area, conference and games room and reception/shop.
A well equipped central block of communal amenities includes a laundry, kitchen, and men’s and women’s bathrooms, as well as a clothesline, barbecue area, and a fish-cleaning area for trout fishing enthusiasts.
“Holdens Bay Holiday Park offers a wide range of accommodation for every budget including, one and two-bedroom motel units, one and two-bedroom cabins and campsites,” Slade says.
View over the swimming pool at Holdens Bay Holiday Park, Rotorua.
Nightly tariffs range from $20 an adult and $10 a child for a powered site, up to $130 for two adults for a two-bedroom motel.
Bookings for the park are usually made through a website operated by the business.
Sladesays the holiday park buildings, which have a total area of 1,555 sq m, are well spaced out within the grounds, creating a relaxed, open atmosphere.
“Over the years the four-star Qualmark rated accommodation business has gained an excellent reputation,” he says. “It’s a popular holiday park located on an interesting and beautiful site. The sale presents the chance for a new owner to take over a highly-regarded accommodation business operation in an extremely popular tourism destination.
“A new owner could move straight in and take over an established business which already has a recognised leisure clientele and enjoys a high level of repeat business.”
Slade says turnover for the year ending March 31 was $303,906 plus GST. Further financial details including operating costs are available on request and through a confidentiality agreement.
Rendell says there is potential to develop the site. “The workshops and storage buildings could be developed into additional accommodation, and there is ample space to build additional accommodation units on-site,” he says.
“Alternatively, under-used sections of the grounds could be converted into an additional business such as a small retail shop, or a children’s bike track, adjacent the children’s play area, or a heated swimming pool, which could be developed as commercial businesses and opened to the public.”
The holiday park is currently operated by two managers and cleaning staff, under a management contract that is due to finish in May 2015.
“A new owner would have the option of continuing to have the business operated by the current managers, who would like to stay on,” Slade says.
The manager’s current residence, a two-storey, four-bedroom house at 4 Stonebridge Park Drive, is being sold separately.
Slade says that property has a capital valuation of $254,000 and was built in the 1970s. It has a floor area of 248 sq m and occupies a 789 sq m section.
Mark Slade of Bayleys Rotorua