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Accommodation Market Activity - July/August 2005 ( 02/08/2005 )
Present activity within the motel industry is very strong. There are
many recent motel sales that have been transacted with some very good
prices being achieved. Demand is far outstripping supply with a major
shortage of motels compared to buyers in the market. Now is therefore
an excellent time to be selling a motel.
The new financial year has resulted in buyers requiring Accountant’s
Profit and Loss Statements for 2004/05 prior to proceeding with any
purchase. Anyone selling their motel should have these figures
prepared as soon as possible to avoid any delays in the sale
process.
Leasehold motel sales are active at all price levels. We have been
receiving high numbers of enquiries for lease motels ranging from
$250,000 - $1.5 Mil. This market is very active and a lack of lease
motels available for sale has meant very good prices being achieved
for those that have sold recently.
Freehold motels are also in high demand with the highest number of
enquiries being in the price range up to the $1 Mil level. There have
been very few freehold motels available above $1 Mil recently and
again, ones that have sold have achieved excellent prices. Well
presented freehold motels with trading data that is up to date are
selling quickly. All regional areas have been in demand with buyers,
from coastal motels to remotely located properties.
The Freehold Investment Motel market is also very active. There are
large numbers of buyers in the market for motels with a lease in
place. There are however very few available on the market. This has
therefore placed pressure on capitalisation rates over the past few
years, having gone from 12% to now sales being achieved below 10%.
Motels were once attractive investments to those from within the
industry, however investors from traditionally other investment areas
now see the attractive opportunities a motel investment can offer.
In summary, the motel sales market is very active at present and good
prices are being achieved in a relatively short time. Well presented
motels with all trading information up to date and available are
receiving good enquiry levels and therefore good sale prices.
For further details please contact Andrew Morgan on 07 4953 1611 or
0417 608 041.
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