Melbourne, 29 July 2015 – A successful family-run motel in the western metropolitan area of Melbourne has been listed for sale, with price expectations tipped greater than $5 million.
The Sunshine Motor Inn is currently operated by father and son team, John and David Swain, who have decided after more than two decades under the family’s helm, to sell the expansive holding together with the strong performing business.
Located at 608 Ballarat Road, Ardeer, the Sunshine Motor Inn comprises 44 3.5 star ensuite motel rooms and has been a popular resting place for workers and passing truck drivers who frequent the area together with tourists to the area.
Following a move to modernise the motels 44 rooms around three years ago, the business has continued to go from strength to strength, with attractive annual revenue growth resulting in a healthy bottom line.
CBRE Hotels’ Scott Callow and Joseph Du Rieu have been appointed to handle the sale on behalf of the Swain family, with the public Expression of Interest campaign set to close in September.
In addition to the 44 refurbished accommodation rooms, the property boasts a two-bedroom manager’s residence, swimming pool, public bar, ‘Blazed Bar & Grill’ restaurant, a modern commercial kitchen with wood fired pizza oven and an extensive bitumen sealed car park.
The expansive dual fronted site offers high exposure to passing traffic on Ballarat Road, which is a key generator to the motel’s walk in trade. Benefitting from a relatively shallow pool of competition in the area, the motel is considered one of the premium accommodation offerings for visitors to the west of Melbourne.
Mr Callow said the asset benefitted from the high exposure Ballarat Road location, which generated significant ‘drive by’ business.
“Given the motel operates in a segment of the accommodation market that has limited competition due to the location, we expect the sale to attract strong levels of demand from local and international owner operators,” Mr Callow said.
“The continued low interest rate environment has made it attractive for local owner operators to secure freehold and businesses where possible.”
“We are seeing an environment that could be considered a perfect storm with low local interest rates and a falling Australian dollar making foreign investment more attractive and therefore driving competition for accommodation assets in Melbourne and Australia as a whole.”
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