Bayleys news & articles


Oamaru’s largest motor lodge accommodation business goes up for sale

Tags: Commercial

The business operating as Oamaru’s largest motor lodge accommodation provider has been placed on the market for sale.


The 34-room Heritage Court Motor Lodge at 346 Thames Highway is the preferred accommodation provider for multiple tour group operators using Oamaru. Oamaru has become a recognised tourist destination in its own right with the blue penguin colony and Victorian precinct and also is used as a gateway to and from Queenstown, Mount Cook, Wanaka, Te Anau and Lake Tekapo.

Trading records show the business is expected to turn over more than $1.2 million in revenue this financial year, and is currently on a 35 year lease running through until 2052. In addition to its core accommodation operations, the Heritage Court Motor Lodge also has a 60-seat licensed restaurant which is also open to the general public.

Originally built in the 1980s, Heritage Court Motor Lodge’s infrastructure has been steadily increased over the years – with each new incarnation adding another dimension to the business’s bottom line trading figures.

The venue’s restaurant was added in 2003, eight further guest units were added to the accommodation pool in 2007, and 14 new luxury units came onstream earlier this year.

Now the Heritage Court Motor Lodge business – with a four-and-a-half-star Qualmark accreditation pending - is being offered for sale by tender through Bayleys, with tenders closing 10am on December 20. The business is being jointly marketed by Carolyn Hanson of Bayleys Auckland and Sue Morton of Bayleys Canterbury, who said the lodge recorded an occupancy rate of more than 80 percent in October and November this year.

Ms Hanson said the Heritage Court Motor Lodge accommodation configuration consisted of 22 luxury studio units, eight standard studio units, one single-bedroom unit, a trio of two-bedroom family units, and a stand-alone five bedroom home predominantly let on a corporate basis to contractors working on the province’s highway network, other local construction works, and large groups seeking their own space.

The 1,405 square metres of buildings operating as the Heritage Court Motor Lodge business sit on some 4,047 square metres of freehold land. Ms Hanson said the two-storey accommodation blocks were constructed of beautiful Oamaru stone, and cedar timber, which provides ageless appeal, with steel and iron roofing. Sealed car parking sustains one spot per room. Some of the ground floor units are wheelchair-accessible.

“The property is located on the fringe of Oamaru’s CBD, and while it enjoys a prominent street frontage exposure onto State Highway One, traffic noise is minimal for guests because the accommodation units are set well back from the road,” she said.

Rack rates for the studio units range from $150 per night. Rack rates for the two-bedroom units range from $230 per night, while the five-bedroom ‘contractor’s unit’ has a nightly rack rate of $500, and is usually booked out long in advance for two-week periods.

Year-on-year trading figures for the month of January 2015/2016/2017 reflect steady growth in measurable matrices. Occupancy is up from 50 percent to 79 percent over the two-year period. Forward bookings are exceptionally strong - with an average occupancy rate of approximately 80 percent already confirmed for the months from December 2017 through to April 2018.

Ms Morton said the property included a two-storey five-bedroom owner/manager’s residence adjoining the office reception. An on-going scheduled maintenance programme – internally in the rooms, externally on the buildings, and the landscaped grounds – ensured Heritage Court Motor Lodge maintained a high level of guest appeal.

“Heritage Motor Court very much benefits from its vertical service integration – offering accommodation and food and beverage services through the restaurant which serves breakfasts and dinners six days a week,” Ms Morton said.

“This revenue stream is enhanced by guests wishing to dine in the restaurant or order in-room meals rather than having fast food options delivered by outside providers, and also allows the business to serve full cooked breakfasts. All of this adds to the business’s overall revenue streams.”

Related articles