White Heron Motor Lodge - Motel Accommodation in Gisborne, New Zealand

Motel Business For Sale

White Heron Motor Lodge

Location:	474 Gladstone Road Gisborne New Zealand
Property use:	Motel/Leisure
Land area:	3036m²
Viewing instructions:	Viewing is by appointment. Contact: Colin McNab, Bayleys Real Estate - Phone: 06 868 5188 Mobile: 021 808 438. colin.m@bayleysgisborne.co.nz
Rateable value:	$2,285,000
Motel Lease Price:	"Upon application" Ignore previous advertised price

The White Heron Motor Lodge is situated in sunny Gisborne.

The property is an attractive contemporary development, completed towards the end of 1994, comprising a 24 unit motor inn complex and a three bedroom managers residence, all situated on a 3036 sq. metre site.

This is a fantastic opportunity to secure the motel lease of this high profile, profitable business. The lease has been extended to 30 November 2034.

The locality aspect, of the White Heron's position is arguably the best along Gisborne's "motel mile" that ensures easy accessibility and a high level of roadside exposure.

Gisborne is a destination that enjoys a steady corporate trade that continue to support commercial accommodation. Not many people pass through Gisborne - you are obliged to stay!

Gisborne has an emerging tourism trade that has the potential to dramatically increase as the region is discovered as a major holiday destination by Kiwi domestic city dwellers and returning overseas visitors looking for an authentic and fresh coastal location to visit.

The White Heron Motor Lodge is in an excellent position to take advantage of the upswing in the economy and increased visitor numbers.

From an operators point of view the White Heron Motor Lodge is a great property to manage on a day to day basis. It has a good sized 3-bedroom manager's home, a large reception area that provides a very efficient workspace, a separate commercial kitchen, commercial laundry and linen/store area.

The good range of guest rooms are larger than what is expected for a modern complex and is licensed to provide liquor sales through mini bars and sales at reception. There is a larger unit that has been designed to be utilised as a display/conference venue that can be further promoted as an excellent reciprocal income stream if desired.

The attractive established grounds and gardens have been designed to be easy care.

With 24-guest rooms, the size of this complex and profitability will allow the operators to outsource management from time to time to enjoy Gisborne's unique lifestyle opportunities.

Asking price is plus GST if applicable.

View their website for further information: www.whml.co.nz

*** UPDATE *** The White Heron Motor Lodge has been featured in the following media (click to view):

Infonews.co.nz, Scoop independent news, voxy.co.nz, The New Zealand Herald, NZ News UK and The Dominion (no link).

Viewing is by appointment. Contact: Agent, Colin McNab, Bayleys Real Estate - Phone: 06 868 5188
or Mobile: 021 808 438.

Map of Gisborne, showing White Heron Motor Lodge

UPDATE: White Heron Motor Lodge features in property section of the New Zealand Herald

Gisborne's White Heron could fly higher

By Colin Taylor

The lease for the popular White Heron Motor Lodge in Gladstone Rd, Gisborne, is being offered for sale by Karen Raureti and Colin McNab of Bayleys Gisborne who are marketing the property with an asking price of $ xxxx plus GST if any.

"This presents a real opportunity for savvy owner-operators to pick up the reins and take a hands-on approach to elevate this successful business to a new level," says McNab.

"The term of the standard motel lease was recently extended to September 30, 2034, but after 16 years as working moteliers, the current holders of the lease are now looking to

exit Gisborne to be closer to their children."

McNab says the motor lodge at 474 Gladstone Rd, the city's main arterial route, has been operated under management for the past four years.

"The motor lodge has 24 units, giving an operator economies of scale to allow the option of contracting staff and relieving management in order to maintain a lifestyle.

"The 2010 financial accounts for the business show continued strong comparable trading and occupancy levels. However, an owner-operator model of business management could clearly improve the bottom line as costs can be substantially reduced. Staff costs and maintenance work that is at present contracted out can be brought back 'in house', for example."

Built in late 1994, the single-level White Heron Motor Lodge is set on a large 3036sq m site with excellent profile to busy Gladstone Rd and good accessibility.

The building configuration provides a U-shaped access/egress area with well-established plantings, cobblestone paving and lawns. The manager's residence and motel reception/service areas are located to the front and centre of the site with an L-shaped accommodation building to the western and southern boundaries and five more units on the eastern boundary.

The units comprise an accommodation mix of 17 studios, plus four 1-bedroom and three 2-bedroom units. A three-bedroom manager's residence has an adjoining reception/office area, commercial kitchen, motel laundry with commercial washers and dryers, storage area plus a separately accessed staff room, guest laundry and storeroom.

Raureti says the units have proved popular with families, commercial travellers, sports and conference groups and travellers with the larger of the two 2-bedroom units often used as a compact conference facility or training room adding another dimension.

"Gisborne has always enjoyed good accommodation trade from company reps in particular as it's not a city they can just pass through if they're on business," Raureti says.

The studios are 34.5sq m in size, making them larger-than-average for motel complexes and they include combined living/sleeping space, kitchen facilities and spa baths or separate showers. Two of these studios are wheelchair-friendly with bathrooms having curtained shower areas.

The one-bedroom units have an internal area of approximately 47sq m - again larger than average - with a double bedroom and bathroom with spa bath while the three 2-bedroom units have two separate bedrooms and one has a spa bath.

"The units are all presented well but there are funds put aside in a maintenance account for a new owner to refurbish the interiors should they feel it necessary," says McNab. "The exterior of the buildings were recently repainted and will require only modest upkeep over coming years."

The property holds a liquor licence to allow in-room mini bars and to cater for on-site conferences.

The present owners plan to remain in Gisborne for the short-term, so will be on hand to offer assistance to a new owner.

The Gisborne region has a number of large events planned over the next couple of years. "Gisborne will be hosting Namibia during the 2011 Rugby World Cup and with the French team playing in Napier it is hoped that Gisborne will be on the travel itinerary of many supporters spending time on the East Coast," says McNab.

The Te Matatini National Kapa Haka Festival will be held in Gisborne in February 2011 and January is usually busy thanks to the general summer influx of holidaymakers and the increasingly popular Rhythm and Vines festival.