A large high-profile motel in one of New Zealand’s leading visitor destinations is for sale with a business and property structure that offers a rare diversity of future options.

The upmarket 39-room Beechtree Motel has a commanding position in the heart of the year-round lakeside tourist haven of Taupo, in the centre of the country’s North Island.

Located on one of Taupo’s busiest thoroughfares, Beechtree Motel is within a short stroll of town-centre restaurants and bars and the shoreline of scenic Lake Taupo, which overlooks the volcanoes of World Heritage-listed Tongariro National Park.

The complex caters to Taupo’s busy, predominantly domestic visitor demand for family holidays, romantic weekends and business travel. It also accommodates large group bookings for conferences and sports teams attending events or tournaments in the town.

The Beechtree Motel, on Rifle Range Road, Taupo, is being offered for sale as a freehold going concern with an asking price of NZD10 million plus goods and services tax (if any) through New Zealand’s largest full-service real estate agency, Bayleys Real Estate.

The sale comes at a time when occupancy and room rates in Taupo are on the rise.

Bayleys National Hotels, Tourism and Leisure Director Wayne Keene said Beechtree was built in two stages, with dual self-contained motel buildings on separate freehold titles.

The titles have a combined land area of nearly 3,900 square metres including 56 car parks. Constructed in 2006/2007, the motel has been run under management by a single operator ever since.

“The opportunity here is for an investor to secure this large double site with options to either sell the business of the entire 39 units and keep the freehold buildings, or to consider splitting the two properties.

“Both properties have an existing separate registered lease over their respective titles providing more options in splitting the businesses and/or land and buildings to suit their circumstances.

“Very rarely do we see opportunities like this with such flexibility in ownership or future divestment, let alone in a visitor destination as desirable as Taupo,” said Keene.

Beechtree’s self-contained boutique rooms are a mix of luxury studios and two- and three-bedroom suites – all with air conditioning and free unlimited Wi-Fi, and many containing a spa bath.

Keene said the various configurations of the 39 well-appointed rooms offered flexibility and economies of scale.

Both buildings are two levels and, while similar in design, one has 19 rooms and the other 21.

Currently run under management as one accommodation business, the buildings each have a dedicated reception and generous three-bedroom owner’s accommodation. One of the owner’s accommodation units is currently used as everyday room inventory. The buildings also have their own onsite laundry, garaging and general facilities which enables them to be owned separately if required.

The generous residential-zoned combined landholding allows the motel to cater for larger groups and extra vehicles over peak times with its 56 dedicated car parks. The complex also enjoys the benefit of a semi-private area at the rear for barbecues with plenty of open spaces.

Bayleys Hotels, Tourism and Business Sales specialist Steve Pett said the property has always performed well. It offered competitive tariffs across shoulder, high and low season and was currently trading above budget.

Details on income and occupancy rates are available to potential buyers subject to signing a confidentiality agreement.

Pett said Beechtree was well placed for a new owner to secure a solid business capitalising on favourable market dynamics.

“The number of available motel rooms in Taupo has decreased over the past three or so years due to permanent letting. As a result, accommodation providers have been buoyed by better occupancy and higher room rates.

“Taupo has a strong, established visitor market based on outdoor and recreational activities, thermal attractions and corporate events, catering predominantly to year-round domestic tourism.

“Positioned at the centre of the North Island, it is roughly midway between New Zealand’s largest city, Auckland, and its capital Wellington. This places it within a few hours’ drive of half of New Zealand’s population of nearly 5.3 million,” Pett said.

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