Heritage Highway Motel Business For Sale
Hokitika, New Zealand



Modern accommodation complex

Hokitika is the essence of the West Coast.

This busy and vibrant town of 4,500 people celebrates its' early development with a Heritage area, a fascinating local museum and the recently restored Carnegie Building. Hokitika also features fabulous greenstone jewellery, art and craft shops, bars, cafés and restaurants that all combine to make shopping a seven-day-a-week party.

Hokitika is also known as the "Tourist Capital" of the West Coast. Many tourists make Hokitika their base while exploring all that the West Coast has to offer. The town is centrally located and an ideal stopping place for travellers from Blenheim and Nelson who come down the West Coast from the north, from Christchurch in the east, and from Wanaka, Queenstown, Haast, and the Glaciers in the south. Thousands of visitors also come each year for the Hokitika Wild Foods Festival which specialises in gourmet bush tucker.

Heritage Highway Motel is ideally positioned on Fitzherbert Street, the main North South route though Hokitika. The Motel is the first accommodation that travellers meet when coming from the south and is the closest motel to the town centre, restaurants, cafes and shops. The town’s swimming pool is just across the road, the beach and Hokitika River are just a short stroll away, and the Hokitika Golf Course is very handy.

Spacious 2-bedroom units with Queen and single beds

Heritage Highway Motel has come on to the market for the first time since it opened in 1998. This well-presented business provides quality accommodation for domestic and international tourists as well as for corporate clients. Annual turnover exceeds $357,000.

If you have a background in the hospitality industry and are looking for an established Motel in a prime location, consider what Heritage Highway Motel has to offer. The Motel is being sold as two options - either as a long-term lease or as a freehold going concern.

Motel complex catering to the needs of the whole market

Heritage Highway Motel offers 14 ground-floor accommodation units (11 units were built in 1998 and 3 more units were added in 2005):

• 3 x Two Bedroom Units. Two Units have a queen and a single in one bedroom and 3 singles in the other bedroom. They are ideal for a family of up to 6 persons, or for two couples. The third Unit has a queen in one bedroom and 2 singles in the other. This Unit caters to a family of up to 4 persons, or 2 couples.

Ideal family accommodation with 3 single beds in one of the bedrooms

• 2 x One Bedroom Units that have a Queen bed in the lounge and 2 single beds in the bedroom. These Units cater to a family of 4 people, or 2 couples. One of the Units has a spa bath.
• 9 x Studio Units. Three Units have a Queen bed and a single bed and 6 Units have just a Queen bed. One of these Units have a spa bath.

Studio Unit with Queen-size bed

All units have fully self-contained kitchens with ceramic hot plates, microwave ovens, coffee percolators, table and chairs. Beds are fitted with electric blankets and each bathroom has a hair dryer.

Guest Services:

• Continental breakfasts are available.
• Sky television (Movies, Sky Sport 1, Sky Sport 2, Sky News, and Sky 1) and video unit.
• Wireless internet available in all units – pay per use.
• Guest laundry with token-operated washing machine and dryer.
• Rental golf clubs (5 sets) for play on the nearby 18-hole Hokitika golf course.
• Off street parking - many guests stay because they can leave their cars at the motel and walk into town.

Leasehold premises (freehold option also available)

Heritage Highway Motel trades from a leasehold property (2568 square metres) at 12 Fitzherbert Street in Hokitika. The Motel buildings were built in 1998 of low maintenance brick and Hardiflex cladding and metal tile roofs. They are styled on the timeless Tudor-look which appeals to a lot of overseas visitors.

Maintenance and refurbishment has been carried out on an ongoing basis and the property is presented in an excellent condition:

• 2004 - new tables and chairs outside the units.
• 2006 - the exterior of the house and motels were painted as well as the interior of the original 11 units. New Maytag washing machines and dryers were purchased and bathroom heaters were replaced.
• 2007 - new duvet covers purchased and 4 lounge heaters and all bathroom heaters were replaced.

Fully self-contained kitchen and dining-lounge area

The lease ($660,000) is for a 35 year period. The annual rental is $119,000 (plus GST) with 2-year rent reviews.

Freehold Title
The sale of the freehold land and buildings is also available for $1,565,000 (a 7.6% return on the annual lease amount received).

Owner’s Residence
The owner’s accommodation is a substantial 2-storey home (built 1994) comprising 5 bedrooms and 2 living areas and is exceptionally large for a motel.

Upstairs are 4 bedrooms, a bathroom, and a separate toilet. There is a further bedroom with ensuite bathroom downstairs. The downstairs area includes a spacious kitchen-dining-family room, a separate lounge, laundry, and a separate toilet. The family room opens out to a private courtyard with a fishpond and a small grass area.

The house is heated by underfloor pipes (ground floor) and hot water radiators upstairs. There is a double garage for the owner’s cars.

Potential for Bed & Breakfast
The upstairs bedrooms could be utilised as a B & B accommodation, or similar, to generate extra income.

Day to day management

Business Hours:
Monday to Sunday – normal Motel hours.

Staff:
The Motel is operated by the two owners with assistance from a casual cleaner, when required.

Operations Manual:
The business sale will include an operations manual that sets out the current procedures covering the day to day running of the motel.

Front Office:
The motel office is handily located under an all-weather portico. There is a well-proven booking system in place and the phone system is controlled through a hybrex PABX. Calls are monitored by a Callista front office system.

Laundry:
The motel laundry has a Maytag washing machine and dryer for towels, bathmats, hand towels, face cloths, tea towels and pillow cases. The sheets are supplied by Westland Laundry. There is also a separate guest laundry with token-operated Maytag washing machine and dryer.

Cleaning:
The Motel complex was designed for easy cleaning with wet floor showers and wall mounted vanities. It is easily managed by the two owners with occasional assistance from a casual cleaner.

Freephone Number:
The business owns the freephone number 0800HOKITIKA. This unique number will be a large source of future business - and its marketing potential has only just begun.

Advertising:
Heritage Highway Motel advertises through roadside signage and advertisements with AA and Jasons accommodation guides and web marketing. Free Independent Travellers make up 40% of bookings.

The business owns an informative website http://www.heritagemotel.co.nz/ with Booking Enquiry Form. Holiday Guide, which is linked to MANZ, is the main booking portal for the business.

Mini Golf

There is a 6-hole minigolf behind Units 1 and 2 that is on a separate 240 square metres of land. Some guests book in because the minigolf is here. Minigolf is not part of the 35 year lease property. A 2 year by 2 year lease is available with the lease cost being set equal to the annual rates bill.

Call Vicki or Allen on +64 3 755 8098

Hokitika

Hokitika is a friendly West Coast town with a wild and beautiful surf beach, famous river, and a mild rain-forest climate with ample sunshine. The town enjoys a scenic backdrop of the Southern Alps, just 20 km to the east.

Hokitika was the hub of the 1860's gold rush, with most of the miners arriving through its busy river port to set up calico and tin shanty settlements. Their history can be seen at the old gold towns of Kumara and Ross. Today, Hokitika is an important service town with industry, culture, crafts, adventures and tourism. Hokitika is New Zealand's lapidary centre, predominantly jade carving from local sources.

Hokitika is also the base for many outdoor activities such as extreme white water kayaking, mountaineering and hiking routes that cross snowfields, glaciers and the Southern Alps. The whole area offers great trout fishing, hunting for red deer and chamois, whitebaiting, and gold prospecting. Other attractions include wild surf beaches, walks through peaceful native bush, visiting the scenic Hokitika Gorge during the day and the Glow Worm Dell at dusk.