The current market continues to demonstrate strong interest in the sub $3M band for motel leases with an increase in management rights and caravan parks.

Of recent note we are seeing prime leases selling close to 20% net whilst older established properties are closer to 28% for bed and breakfast facilities and restaurants continue to see the 30% plus. Factors such as term, rental, the existence of market reviews are all contributing to the values

As with all market segments, the coast is for show and the country is for dough with a number of recent freehold sales being in the 10 to 11% range along the coast. Inland properties showing 15% or better continue to be split creating new lease and investment opportunities.

Operators along the coast continue to report strong demand, especially from local tourism with some decline from the business sector being felt, but overall the figures remain strong with operators doing well.

In QLD, management rights seem to be coming back in flavour with a number of recent sales in the market, considerably more than 2008, but in yields more accepted by the market with Noosa achieving the 5s, but other areas less with some in the multiples of 3. Position, Position, Position continue to be important.

Caravan parks are again in demand for growing parks or parks with strong returns.

With team members located at Noosa, Townsville, the Gold Coast, Tamworth, Kempsey, Sydney and Victoria, Tourism Brokers continue to grow in the NSW motels, Qld hospitality sales, Victorian Resort Brokers and be recognised as leading resort brokers, management rights, motel and caravan park brokers generally. We look forward to the opportunity of working with you in the future.

Michael Philpott 043 313 7927