Buying a hotel/motel

[Mr Z]

Freehold, to lease out as a passive investment. Thinking somewhere like McKay, somewhere business is the dominant trade and is exposed to the mining industry.

Where/what would you consider and why?

 

[noie]

Mackay or McKay?

 

[tech/a]

Its simply Return on investment.
A good business nett of directors salary should return 25-35%

So no matter what your looking at and where if the numbers dont stack up dont go near it.

 

[Mr Z]

Mackay I has issuzez spellun!

Its a passive investment... best I will see is 10/11% by my reckoning... maybe lower, around 7-8% depending on the property.

I like to do these things with some fore thought, looking backward at the numbers so far is never the whole story.

There is a place in Mackay returning 8% or so, they want 6M for it.

Anyway...

 

[springhill]

I once bought some hotels on Bond, Oxford and Regent St, but my business didn't survive.
No-one stayed for more than one roll of the dice!

 

[Mr Z]

Gee that is so cool....

:

 

[noie]

Mackay I has issuzez spellun!

Its a passive investment... best I will see is 10/11% by my reckoning... maybe lower, around 7-8% depending on the property.

I like to do these things with some fore thought, looking backward at the numbers so far is never the whole story.

There is a place in Mackay returning 8% or so, they want 6M for it.

Anyway...

hmm

well

Smallish town, 66k is the last guess, 34 mins nice and close, largest coal deposit in QLD, not to mention all that sweetness to the north
I remember a few nice beaches and some nice fishing

Is the motel/hotel in the city's south?

 

[Garpal Gumnut]

Caravan parks are a better investment, more cash than hotel/motels and a more interesting clientele.

gg

 

[Mr Z]

West I guess...

The ALARA MOTOR INN @ 52 NEBO ROAD.

Anyway, I was more trying to think of other areas where business was underpinned by mining that might be worth looking at. The idea of relying on the tourist trade leaves me cold ATM. I thought maybe someone here may have some suggestions as to where it is worth looking.

 

[Mr Z]

Caravan parks are a better investment, more cash than hotel/motels and a more interesting clientele.

gg

I disagree looking forward I believe they are close to having done their dash for a while... in 98 you'd have been on the money.

Also permanents in caravan parks are a problem or so I am told, you don't want to many of them.

One f those motels that has hourly rates could be fun...

ANYWAY... I could care, I will only see it once a year! Just so long as the lease holder can keep the cheques coming!

 

[Garpal Gumnut]

I have been told that all motels in that good city have customers who avail of the hourly rate.

As I have no personal experience, I am unable to vouch for the Alara, but they have a good breakfast.

gg

 

[Mr Z]

.... but they have a good breakfast.

You one of those expensive all nighters?