High level of interest in Ballina motel proves coastal appeal stronger than ever
The strong demand for quality regional accommodation investments is on full display in Ballina, where the recently renovated Ballina Homestead Motel has ignited substantial buyer interest.
Listed by ResortBrokers’ Miguel Bozina, the 27-room, four-star motel has drawn a steady flow of enquiries in just over two weeks of the campaign, signalling investor appetite for well-performing regional hospitality businesses.
“Ballina Homestead Motel is a prime example of how hot buyers are for Northern Rivers accommodation businesses,” Bozina says.
“I listed the property just over two weeks ago and have already received over 50 enquiries on it. In this short time, it’s already tracking above the number of enquiries for when I last sold this leasehold in 2023.”
While Bozina manages listings across the Gold Coast and northern NSW, he says buyer focus is squarely on the Northern Rivers.
“Buyers from Sydney, Melbourne and even overseas want to be at the top end of NSW. I’ve already had a Sydney buyer drive all the way up and back on the same day for an inspection of this motel.”
The property presents a rare combination of scale and profitability in a thriving coastal location.
“The motel is right in the sweet spot of what buyers are looking for: a good number of keys, long lease of over 23 years, solid net profit of more than $620,000, high quality with four-star accreditation, and among the highest OTA ratings for Ballina,” Bozina says.
“It’s also a true turnkey business – there are no capital works needed, meaning the new lessee can move straight in and focus on driving growth.
“The prohibitive costs of construction at the moment make existing properties like this motel even more attractive as purchases. Buyers are purchasing them at well below replacement cost.”
He adds that the market for motel leaseholds has surged as investors chase higher returns than those available in metropolitan areas.
“In the leasehold space in my zone, yields have dropped from 33 per cent to the mid-20s and even lower. I recently sold a motel leasehold at a 22 per cent yield — an incredible result for my client. Motel leaseholds on my books go under offer in their first couple of days, and for well over asking price. I think it’s safe to say that yields of 33 per cent are ancient history in the current market.”
With competitive buyer interest showing no signs of slowing, Bozina expects regional motels like Ballina Homestead to remain firmly on investors’ radar.
“Leasehold owners should be very tempted to consider what their asset might be worth — many are reaching out to explore their options to make hay while the sun shines.”
