'Quality' large scale hospitality business on the market for sale

One of Nelson’s largest accommodation providers, The Quality Hotel Leisure Lodge, is on the market for sale.

Located on a prime arterial road close to the city centre, the lodge covers a total land area of 8,680 square metres and includes land available for expansion of the business.

The sale includes a licensed restaurant and bar, conference facilities, 80 accommodation units sleeping a total of 275 guests, as well as residences for both the manager and owner.

The lodge accommodation features studio units, one and two-bedroom units, and apartments, with room rates from $124 to $260 a night inclusive of GST. All of the rooms feature refrigerators, iron and ironing boards, Sky TV, hair dryers, and alarm clock radios.

The lodge facilities include two fully equipped laundries, wireless internet connection, a barbeque area, swimming pool, and a spa. In addition there is an onsite conference facility for large groups of up to 50 people, with catering facilities and equipment hire available.

The restaurant and bar, Flames on 40, serves breakfast and dinner from an al-la-carte menu and seats 35 people. The bar, open from 5pm daily, includes a big screen TV for sports fans.

The hotel employs a total of 20 full-time staff in the winter and 26 in the winter, including a full-time manager.

The Quality Hotel Leisure Lodge is for sale or lease by Bayleys, and is being marketed by Bayleys Nelson tourism and business salespeople Nick Lambert and Bayleys Marlborough commercial and business salesperson Grant Baxter.

Mr Lambert said the lodge was being marketed as a freehold going concern for $12.25million, or as a business lease for $2.2million plus GST a year.

Mr Lambert said: “There are several options available for interested parties. They can purchase the land, the buildings, and the hotel business, grow the business then sell the lease. Or they can retain the property ownership and derive income from the lease. Alternatively they could buy the business and operate it as an owner/operator or employ a manager.

“There is also the option to purchase just the lease, from which the owner will create a brand new 35-year lease from possession.”

Mr Lambert said the lodge had undergone a recent $7.5million refurbishment which included the addition of 12 motel-style units. The upgrade also included construction of residences for both the owner and manager.

Mr Lambert said: “Situated behind reception is a newly constructed luxury four bedroom house, as well as an 80 square metre two-bedroom self-contained flat. These can either be used as separate residences for the owner and manager, or they can be easily interconnected to create one large home.”

He said the new owner may wish to build on the existing conference facilities available, with land already acquired for the construction of further conference areas.

“This is not only an excellent opportunity to take on an existing business, but also to capitalise on the opportunity to expand that business. This may appeal to a hotel chain or accommodation operator seeking to establish a presence in the top of the South Island.”

The Quality Hotel Leisure Lodge is located on Waimea Road - the main arterial route in and out of the Nelson central business district, and is just 10 minutes from Nelson Airport and Tahunanui Beach.