Recognisable hotel offers several commercial opportunities

One of the eastern Bay of Plenty’s most recognisable hotels – built more than a century ago is on the market for sale.

The Royal Hotel in Opotiki was built in 1878 and underwent significant renovations in 1908. The two-storeyed hotel has a land area of 1467 square metres, with the hotel building occupying 767 square metres. The hotel is now recognised as a category two building by the New Zealand Historic Places Trust.

The ground floor has a 542 square metre bar/restaurant that is currently untenanted, and 130 square metre café that has been leased to experienced owners for a number of years. In addition, there are four small residential units at the rear of the property generating further cashflow.

The second storey is a 223 square metre backpacker business with nine bedrooms, separate male and female bathrooms, a kitchen, communal lounge, dining area and outside balcony area.

Refurbishments were made to the hotel in 2003 – with an approved automatic sprinkler system installed - ensuring the building complies with both regulatory and functionality requirements for its tourism and hospitality needs.

The property is for sale for $975,000 plus GST through Bayleys and is being marketed by salespeople Aaron Milne and Duncan Dysart.

Mr Milne said The Royal Hotel offers several business opportunities including a leased café, bar/restaurant, backpackers business and residential flats.

“There is a serious opportunity for an owner/operator to achieve greater synergies between the bar/restaurant and the backpackers business,” Mr Milne said.

“The potential in the backpacker business is largely untapped due to a lack of time on the part of the owners. Looking ahead to later this year when the Motu Cycle Trail opens in October, it is envisaged there will be a significant increase in the number of tourists requiring accommodation – and a chance for the new owner to build on the business,” said Mr Milne.

Adjoining The Royal Hotel are two lock-up garages that can be used as storage areas, plus substantial off-street parking.

The Royal Hotel is located on Church Street, which runs the length of Opotiki town.

Mr Milne said this remains Opotiki’s ‘high street’- with a wide selection of retail, hospitality and service related businesses.