The land, buildings and business sustaining a strong-performing motel in one of the Central North Island’s busiest tourist-towns has been placed on the market for sale.
Dunrovin Motel, at 140 Heuheu Street, in Central Taupo, is an 11-unit accommodation business which has been operating successfully for almost 60 years.
The venue’s accommodation portfolio includes two two-bedroom units that can sleep up five people; one two-bedroom unit that can sleep up to six people; three one-bedrooms units that can sleep two to three people and two studio units that can sleep one to two people. Each of the units come with a fully equipped kitchen and an LED TV with 50-plus SKY TV channels. Free WiFi is also offered.
Rack rates for the motel range from $95 to $150.
Bayleys sales agent Josh Bradburn says: “Dunrovin is one of Taupo's original motels, and first opened to the public in 1962. The units have been regularly refurbished since that time and now offer a peaceful haven in central Taupo.
“The 575sq m motel sits on 2163sq m of land and encompasses a two-storey four-bedroom owner/manager’s unit and office, which is currently being rented out through Airbnb.
“There is also ample off road parking and a lock up garage for motorcycles and bikes.”
The property is minutes from Taupo CBD and the Lake Taupo foreshore, Mr Bradburn says.
“This handy central location is one of the attractions for many guests booking into Dunrovin, allowing them to walk to and from the town’s numerous food and beverage or retail outlets.”
The land, buildings and business at 140 Heuheu Street are being marketed for sale by negotiation through Bayleys Taupo.
Mr Bradburn says there are two distinct target buyer markets for the property and business.
“Firstly, it could be bought as an investment – with any new owner bringing in a manager to run the property, or leasing it out long-term to an operator,” he says.
“Alternatively, it could be bought by an owner/operator. The size of Dunrovin’s inventory, with just 11 rooms, means it would suit someone getting into this sector of the commercial accommodation market to build up their operational experience.”
Mr Bradburn adds: "New Zealand’s tourism industry is the country’s biggest export earner and the surge in international visitor arrivals has been a huge boost to the accommodation sector.
"Hotel occupancy is at record levels, which has had positive flow-on effects for the motel sector.
”Domestic tourists priced out of Auckland and Queenstown have increasingly turned to holiday experiences in regional areas, such as Taupo.
“For commercial property investors looking to reap the benefits of the tourism boom, motels remain a cost-effective point of entry. With demand for accommodation unlikely to drop and operators always on the look-out for well-located businesses, motels offer a long-term, secure income stream.”