The Offer
For sale is the going concern leasehold interest over a 24-room motel and a 50-seat restaurant on a 5989 square meter site that has mountain views. The business is currently owner-operated with assistance from a part-time manager. The lease is for 30 years in 5-year increments. The first 5-year portion started in October 2010, and the lease ends on October 2040. The sale is inclusive of the website, the business name and the motel inventory with some minor exceptions.
The Property
The motel offers affordable and comfortable accommodation. All the rooms have ensuite bathrooms and are fully equipped. The available room configurations cater for a wide variety of guest requirements.
All town services are available including broadband Internet (Deloraine was one of the first towns in Australia to be connected to the fibre optic National Broadband Network), mains power, town water, town sewerage and telephone.
The owners have done some renovations, and the overall condition is in good order. The building is single level, and guest parking is available outside each motel room.
The Settlers Restaurant is a fully licenced a la carte restaurant with seating up to 50 guests. It has a nostalgic 1800’s theme, featuring rustic timber furniture, a large stone fireplace, early settler’s memorabilia and pottery drinkware. The fantastic bar serves beer on tap, wine spirits, and non-alcoholic drinks. The restaurant opens for dinner at 6 pm daily.
The Business
The business is long running and was first established in 1967. The current owners purchased the business in 2010 and had grown turnover from the accommodation and the restaurant year on year. In FY 2015-2016, the business turned over approx. $552k in total and netted approx. $135k after third party wages, showing a return on investment of 31.2%. . The business is currently owner-operated with assistance from a part-time manager and a roster of well experience casual staff.
The motel attracts tourists and visitors staying in Deloraine for the regular cultural events, for sightseeing and as a base for exploration of the area. The motel is also a frequent overnight stopover for travellers going or returning from the further west or travelling between Devonport and Launceston. The motel also attracts business guests from the mining, railway, and dairy sector. There is a number of Bed and Breakfasts in town, but this is the only available Motel. Furthermore, the restaurant adds to the Motel attraction by providing guests with the convenient choice of dining on site.
It is a self-rated 3-star motel and reviews can be found on most booking agent. It currently rates as ‘Best value’ on Trip Advisor, and it rates 3.9 out of 5 with Wotif.com
The Location
Deloraine is a beautiful town on the Meander River, in the central north of Tasmania. It is 50 km west of Launceston and 52 km south of Devonport along the Bass Highway. It has a temperate and wet climate and a small population of 2745 people (as at 2011). It is surrounded by lush farmlands with the Great Western Tiers as a beautiful backdrop. Deloraine serves as the educational and health centre for the Meander Valley region and is home to both a hospital/dental clinic and a doctor’s practice. Because of its location between the two cities of Launceston and Devonport, Deloraine is also a transport hub for trade and tourists between the two cities. Tourists visit the town because of its cultural attractions and because of its location as an ideal base to explore areas such as Cradle Mountain, the Great Western Tiers, Mole Creek and the Central Highlands.
Agent’s Opinion:
This offer is an opportunity to acquire a lease over a well-established motel with a long track record of performance located in a beautiful town. There is a long lease, and the net profit is excellent for an owner-occupier working only five days a week. There is the possibility for a substantial increase in occupancy from the mining activities in the area.
