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Waterfront tourism accommodation business placed on the market for sale

Tags: Residential

The land and buildings housing a newly completed tourist accommodation complex in the Eastern Bay of Plenty have been placed on the market for sale.

The venue – registered but not yet trading as Kohi Point Villas – is located at the entrance to Whakatane Harbour beneath Kohi Point Scenic Reserve, which is the imposing headland separating Whakatane township from neighbouring Ohope.

The commercially-established Kohi Point Villas accommodation business at 25 Muriwai Drive consists of 683 square metres of variously configured units, encompassing:

• Two one-bedroom suites

• A one-bedroom villa

• A two-bedroom apartment

• A three-bedroom apartment and

• A four-bedroom villa with four bathrooms and two kitchens.

Set into a gently-rising slope back from Muriwai Drive, Kohi Point Villas is constructed over multiple levels – enabling each of the various suites and apartments to have views of Whakatane Harbour over the road. The 736 square metre freehold site is zoned residential 9A under Whakatane District Council’s district plan.

Kohi Point Villas also comes with a communal ‘sky lounge’ – a top floor area above the highest point of the complex, delivery towering views. The sky lounge is separated into three areas – a covered outdoor deck area, a dining room venue, and a lounge zone with large couch seating.

The multi-accommodation buildings, land, and business being marketed for sale by negotiation jointly through Bayleys Auckland and Bayleys Mount Maunganui. Prior to a substantial reconfiguration and modernisation, the premises was formerly a family home with separate areas for visiting friends and relatives.

Bayleys Auckland tourism and hospitality specialist Carolyn Hanson said the business was being sold as a ‘turnkey’ operation - with any new owner potentially able to begin trading in time for the busy 2017/18 summer season.

“The hard work in developing the business assets has been completed – with the suites and apartments all fully consented, fitted out, and furnished to a five-star standard. What remains now is for a new owner to take on the marketing and operations arms of the business,’ Ms Hanson said.

“The property and business’s owners had taken on Kohi Point Villas as a long-term fully costed out and budget-managed project. However, a change in personal circumstances now means they have taken their vision as far as they can, and are ready to hand over the next phase and opportunity to new owners.

“Peak tourist season for Whakatane, as with most New Zealand coastal towns, runs from around December 20 through to the end of February. With internet search engines and websites now driving the majority of reservations and bookings for accommodation providers, a savvy accommodation operator could be up and running to capitalise on the upcoming summer period.

“There are very few other comparable accommodation venues of this type in Whakatane – with most being mid-range motel style.”

Ms Hanson said the room capacity and style of accommodation on offer in the Kohi Point Villas complex had been designed to target the ‘free independent’ tourist sector – both domestic and international.

’Free Independents’ are tourists who make their own travel and accommodation bookings. Segmenting that category down further, international tourists tend to hire rental vehicles, while domestic holidaymakers usually utilise their own car. They don’t usually travel in large groups, and are certainly not in the bus-in/bus out category.

“However, they do tend to stay longer in their chosen destinations and take advantage of supporting tourism infrastructure such as wineries, eco’ attractions, mountain biking, and adventure-based activities.”

Bayleys Mount Maunganui salesperson Sandra Power said that chattels being sold with the business included all brand-new furnishings and fittings – ranging from kitchen appliances, lounge/dining room and outdoor table and seating furniture, through to all bedding and linen, crockery and cutlery. SKY TV was wired through to all units.

The stucco-clad property has garage parking for four guest vehicles, with additional non-covered parking for three more guest vehicles. Virtually all of the property’s external driveways and entrance areas are sealed – with just a small garden at the front of the premises adjacent to the car parking amenity.

Figures from the Ministry of Business, Innovation and Employment’s latest Tourism accommodation infrastructure report highlight that motels make up the “lion’s share” of commercial accommodation establishments in New Zealand - accounting for 56 per cent of all businesses in that sector.

The report identified that there were 859 commercial accommodation providers registered in the Bay of Plenty/Rotorua catchment area – sustaining a total 2654 rooms, with an average of 3.1 rooms per property which generated an average price per night of $207 per room.

“As Kohi Point Villas has yet to officially open, rack rates have yet to be set. However, the high standard of guest room amenities, combined with the potential to offer a boutique lodge level of service, would fairly much dictate that any rate could be considerably higher than the market average level,” Ms Power said.

“However, a premium rate should be relatively easy to establish as, where possible, the living room spaces at and in some cases the master bedrooms, all have seaward-facing vistas. This sets the lodge apart from virtually every other commercial accommodation provider in the township, which are mainly single or dual-storied locations built in the flat parts of Whakatane,” she said.

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