Fizzing Tourism Opportunity At Mineral Spa Resort

Fizzing Tourism Opportunity At Mineral Spa Resort

One of the few commercial accommodation providers in the thermal hot springs settlement of Waiwera just north of Auckland has been placed on the market for sale.

Waiwera Motel is a 3-star motel which has been operating for five years. The property has 11 units – comprising eight two-bedroom suites and three open-plan studio apartments. All rooms have their own kitchenettes with tea and coffee making facilities in addition to a microwave, and private bathroom amenities.

Waiwera Motel is being jointly marketed for sale by James Chan and Garry Sellars of Bayleys, in conjunction with the company’s new tourism and leisure division.

Mr Chan said Waiwera Motel was ideally poised to benefit from a planned new organic winery and hospitality venture in the town – backed by Russian billionaire Mikhail Khimich who already owns the nearby Waiwera hot pools complex and associated Waiwera mineral water production plant.

Auckland City Council last year approved plans for Mr Khimich’s vineyard and on site tasting facility with a commercial kitchen.

“Should the operation expand into a niche function destination for the likes of corporate events during the week in conjunction with weddings on the weekends, Waiwera Motel would be an immediate beneficiary of the increased visitor numbers to the town,” Mr Chan said.

“Both the corporate and leisure markets emanating out of Auckland now are looking for destinations away from the city, yet within an easy travelling time. This has seen a boon for the likes of Riverhead north-west of Auckland and the upper Waikato just south of the Bombays. Waiwera now has the potential to become the venue destination on State Highway One.

“Waiwera also has the capability to grow as a one night ‘get-away’ destination for the Auckland leisure market, which is growing somewhat tired of CBD hotels offering that type of ‘daily deals’. Consumers are now looking for a change of scenery, even if it’s just a 35 minute drive out of the city – and that’s where Waiwera comes into its own,” Mr Chan added.

“The mooted rejuvenation of Waiwera Hot Springs as a thermal resort with an upmarket restaurant will obviously underpin the attraction of the area as a leisure-based location. In the 2012 year, the resort attracted more than 350,000 people, and the challenge is to not only grow that number, but to broaden the attraction offering to a wider audience.”

Mr Sellars said that with an occupancy rate of just 42 percent, the motel had considerable upside to achieve what would be a much more acceptable occupancy rate of greater than 65 percent. Room rates at the property range from approximately $100 per night for a studio unit, through to approximately $150 per night for a two-bedroom apartment.

“The business has been underperforming for quite some time now, yet the operational infrastructure is in place allowing for this can be turned around. The Waiwera Motel would suit a business operator with a creative flair for marketing and promotions –giving guests a reason to book in and stay at the motel throughout the year,” Mr Sellars said.

“The role is perfect for an existing boutique hotel or motel operator who understands the value of getting alongside regional tourism promotion bodies to attract Aucklanders out of the city.”

The property sits on 2094 square metres of waterfront land overlooking Waiwera Estuary and is being sold with a two-storeyed manager’s unit which can be configured into a one bedroom self-contained flat to accommodate housekeeping staff, and a two bedroom first floor unit.

The motel has a commercial laundry service, luggage storage and laundry facilities, high speed internet access, and a range of leisure amenities and facilities such as a large in-ground swimming pool, canoes and kayaks. All units back onto a large cobbled car parking space.

“The furniture and fittings throughout are all commercial grade, and have consequently worn well over the past five years – to the point where they look almost as new. This means any new owner of the business would require virtually no initial outlay on any modernisation – thereby delivering a virtual ‘turn-key’, operation,” Mr Sellars said.

“The current operator is also offering the potential opportunity of a considerably lengthy hand-over period, enabling any new owner to learn the finer nuances of running a commercial accommodation in a provincial market.”

ENDS

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