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High-performing luxury coastal bed and breakfast placed on the market for sale

Tags: Residential

One of the best performing commercially-run boutique accommodation bed and breakfasts in the seaside Coromandel township of Hahei has been placed on the market for sale.

The upmarket Hahei Bed and Breakfast has guest accommodation consisting of two studio-sized rooms on the ground floor, with two further studio-sized suites on the upper level. Each unit has its own tiled en-suite bathroom.

The ground floor bedrooms flow out onto the garden and swimming pool area, while the upper level rooms have individual decks. The property’s four rooms each have seasonal night rack rates of between $325 - $365.

Since taking over the Hahei Bed & Breakfast business in 2015, the current owners have improved the venue’s website and booking system linked in to several online accommodation search engine programmes, generated an on-going pipeline of forward bookings, switched to streamlined accounting system, and built marketing relationships with in-bound tourism operators.

As a result, the bed and breakfast’s turnover grew by eight percent in the summer of 2015/16, escalating rapidly since then to deliver a 44 percent increase in turnover to the end of the 2017 financial year. Trading accounts show that bookings taken for the lodge through to the end of November last year were up 25 percent on the same month in 2016.

The business tracks a peak occupancy level of more than 90 percent over the summer January/February period, slacking to 55 percent over the shoulder months, and running at 22 percent in the winter months of July and August.

However, Hahei Bed and Breakfast’s owners are now looking to retire, and have placed the land, buildings, and business, on the market for sale for $1.7million through Bayleys Whitianga.

Salesperson Lea Jurkovich said the property and business chattels included a one-bedroom unit owner’s accommodation living space with its own fully-equipped kitchen, lounge/dining room and rumpus room.

The 280 square metre Hahei B & B lodge sits on some 1,551 square metres of freehold land enjoying a semi-rural location and a peek of the ocean from upstairs rooms. The venue is an easy 10 minute walk to beautiful Hahei Beach.

“The current owners have worked hard at creating a first-class brand at Hahei Bed and Breakfast, and there is sufficient opportunity to build on this and further develop the business,” Ms Jurkovich said.

“Tourism is New Zealand’s biggest export revenue earner, and this luxury boutique bed and breakfast has been established as a ‘turn-key’ operation ready to take full advantage of the country’s ever-increasing growth in international visitor numbers.”

Ms Jurkovich said guest demographics at Hahei Bed & Breakfast reflected strong booking numbers by domestic tourists in the lead up to Christmas, while December 25 onward was more dominated by international visitors. Last summer, 87 percent of Hahei Bed & Breakfast’s overall guest nights were generated from off-shore bookings.

“The high standard of guest amenities, decore and fittings offered at Hahei Bed & Breakfast would qualify for a four-star or higher rating under most hospitality assessment programmes,” she said.

“The building which houses the accommodation has been well maintained over the years, while the lawn and garden areas have been landscaped to showcase a park-like setting.

“While breakfasts are included in nightly room rates, the venue’s operators have correctly realised that most guests prefer to eat out – choosing to dine at the small number of local cafes and eateries within Hahei township just a few hundred metres away. As such, they have never attempted to compete in that evening meal service offering.”

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