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Office Address
1310 Hay Street
West Perth
Western Australia 6005

Mailing Address
PO Box 282
West Perth
Western Australia 6872

Phone: +61 8 9481 4422
Fax: +61 8 9481 4441

Email us:
info@buyabusiness.com.au

State of the Market

State of the Market > Hospitality/Accommodation

Retail (Food) | Retail (General) | Service & Professional Practices | Wholesale / Manufacturing

Category Buyer Demand Profit
Owner Operator
Approx.
Total Sale Price
(AUD)
Approx ROI Profit
Under Management
ROI Industry
Comment
Caravan Parks - Freehold Strong $550,000 $4,000,000 12% to 20% $450,000 10%to 15% Highly sought after with coastal locations, between Mandurah and Augusta and North Central Coast particularly popular. Look for higher returns with inland locations. Interest being shown by property developers and property trusts.
Caravan Parks - Leasehold Strong $250,000 $1,000,000 20 to 30% $65,000 13% to 20% Length of lease and location dictate price. Local government leaseholds often attractive.
Country Hotels - Leasehold Fair $120,000 $250,000 40% to 60% $20,000 6% to 12% Demand dies below $100,000 nett profit
Hotels (Leasehold) Fair $220,000 $550,000 35% to 50% $120,000 18% to 25% Selective demand . Rent and tenure important. Difficult industry for beginners.
Motels - Freehold Strong $300,000 $2,000,000 12% to 18% $200,000 8% to 12% Similar in popularity to caravan parks with freehold opportunities selling quickly.
Motels - Leasehold strong $330,000 $500,000 30% to 40% $230,000 20-25% Still popular in good locations and affordable price ranges. Management rights particularly quick to sell at approximately 30% ROI.
Caterers light $200,000 $300,000 55%-75% $100,000 30%-35% Industry insiders reluctant to pay goodwill
Management Rights (resorts) moderate $450,000 $2,000,000 20-30% $350,000 17-20% Return will depend on location and whether freehold mangers unit is incuded or not. Great business for semi retirement , ex farmers seeking a life by the ocean.