Two neighbouring motel complexes in the popular Hawke’s Bay location of Havelock North are being offered to the market for sale, presenting buyers with an outstanding purchasing opportunity.
The Village Motel is located at 16 Te Aute Road and has 20 suites with 1,120sq m of total floor area on a substantial landholding that spans 2,291sq m.
The property returns $258,000 plus GST in net annual rental income and there is a long-term lease in place that has a final expiry of 1 September 2042.
Te Mata Lodge sits at 21 Porter Drive and this motel also has 20 units across 1,100sq m of floor area on a site that measures 1,852sq m.
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There is a long-term lease in place that runs until January 2042 and the motel returns $260,000 plus GST in net annual rental income. There are biennial rent reviews for both motels.
The properties, which can be purchased individually or in one line, enjoy a prime location in the heart of Havelock North and are only a short walk from the local village that is home to boutique shopping and exceptional dining options.
Havelock North is only a few kilometres from Hastings, and Napier can be reached in approximately 25 minutes. The Hawke’s Bay Airport is only 26km away.
Danny Blair, Director at Colliers Hawke’s Bay, has been exclusively appointed to market the properties for sale via deadline private treaty closing at 3pm on Wednesday 23 October, unless sold prior.
The Village Motel has dual street frontage to both Te Aute Road and Porter Drive, ensuring it has excellent profile.
This property boasts 12 studio units, seven one-bedroom units, and one two-bedroom unit, alongside manager’s accommodation, a motel kitchen, and both motel and guest laundries.
The units are modern, well-equipped, and set on meticulously maintained grounds.
The Village Motel enjoys popularity among a diverse range of guests, including domestic and international leisure travellers, corporate guests, and small event and conference groups.
Blair says the Village Motel is an attractive investment opportunity and there is also a development angle that could be explored in the future.
“There is the potential to develop four further units at the property, subject to council consent, that would optimise the usage of this sizeable site,” Blair says.
“This could serve as a major point of difference for this asset and investors may wish to unlock the true value of the site by adding additional units.”
Meanwhile, Te Mata Lodge features 10 studio units, eight one-bedroom units, and two two-bedroom units, complemented by manager’s accommodation, a reception area, and service rooms.
Their spacious suites, which were all refurbished in 2018, have super king beds, a spa bath, and a shower. The units are spread across three separate blocks at the property.
“Te Mata Lodge has cultivated a longstanding and loyal customer base, which underpins its strong revenue and robust trading performance.
“The units are well maintained following their recent refurbishment and create a welcoming environment for guests.”
Hawke’s Bay is a popular tourism destination for domestic and international travellers with its strong Art Deco history in Napier and viticulture industry that is a key element of the wider region. There are a range of wineries and hospitality options for visitors to enjoy.
Data from Infometrics notes the Hastings District, which includes Havelock North, has enjoyed a steady rebound in tourism activity and the 2023 tourism expenditure figures returned to pre-Covid levels.
“These two strategic assets both come with their own unique qualities and will catch the eye of astute investors seeking to secure a stake in the Hawke’s Bay tourism market,” Blair says.
- Supplied by Colliers
