Mining expansion creates dynamite opportunity for local hospitality business
One of the biggest hospitality operators on the West Coast looks set to benefit from the expansion of coal mining operations in the Buller District.
Westport Motor Hotel has been placed on the market for sale at the same time as Australian company Bathurst Resources announced it had exported its first load of coal from the Cascade mine on the West Coast's Denniston Plateau.
The hotel is located on the main arterial route into Westport and covers a total land area of 4231 square metres. It has a 2011 capital value of $3.56million, with rates of $18,285 a year.
The sale includes two accommodation blocks with a total of 27 ensuite studio units, a public bar, restaurant, conference facilities, a Liquorland outlet, as well as a two-bedroom owners/managers residence.
Marketing the hotel for sale is Bayleys Canterbury salespeople Peter Harris and Kate Mullins. Mr Harris said the Westport Motor Hotel had always been a popular choice of accommodation for incoming and temporary workers employed on the four mines operating in the Buller West Coast region.
“With the continued growth of mining operations in the nearby Reefton, Cascade Brookdale Mines, it is anticipated that the business will continue to grow,” he said.
“In addition Bathurst has announced its intention to invest around $40million towards the upgrade of port facilities at Westport, and will be a major employer in the West Coast region, bringing an influx of those involved in the upgrade as well as administration – and all of those people are all going to need a place to eat, drink and stay.”
Mr Harris said the current owners had maintained the hotel complex to a very high standard with an ongoing commitment to repairs and maintenance.
“The hotel has benefitted from a solid trading history over the past five years, with steady growth and strong profit levels,” he said.
Mr Harris said there was also potential for the new owners to increase revenues by adding to the existing accommodation stock.
“The hotel’s main revenue streams come from accommodation, food and liquor. The new owner could look to build on this by converting the current single storey accommodation block into a two storey building, subject to resource consent,” he said.
The hotel’s two accommodation wings, one of which is over two levels, are separated by a landscaped grass area, with parking for 30 cars to the rear of the wings. The ensuite studio units sleep 70 people, with room tariffs starting from $100 a night. The units include tea and coffee making facilities, a refrigerator, television and wireless internet.
The hotel’s conference facilities can host groups of up to 40 people and have previously been used for meetings, private dinner parties and weddings.
Meanwhile, the Serengeti Bar and Restaurant seats 75 people with an a la carte menu, and popular Sunday night smorgasbord.
The sale of the Westport Motor Hotel as a freehold going concern also includes a Liquorland bottle-store located directly on the corner of Fonblanque Street and Palmerston Street, with a drive through car park on the Fonblanque Street side. To the rear of the bottle store is a public bar featuring a big-screen television, jukebox, and free pool tables.
Also part of the sale is a three bay double height enclosed storage building with two roller doors. This is currently utilised as an additional storage shed, maintenance area and wholesale distribution area.
Mr Harris said the Westport Motor Hotel presented an attractive opportunity for an individual or group, perhaps an existing hospitality/accommodation provider, to purchase a freehold going concern business which had strong revenue streams from multiple hospitality-related activities.
He said the hotel had played host to a range of people, including mining industry personnel, from all over the world and had been particularly popular as a venue for local meetings, corporate events and conferences, rugby and sporting teams.
