Listen "#021 - Understanding Leasehold Risks and Opportunities in the Hotel Industry 💯 📝"
Episode Synopsis
Looking to buy your next hotel, motel, caravan park, or management rights?Work with the brokers who meet with Australia’s leading operators every week. Explore exclusive listings and deals backed by decades of on-the-ground experience: https://www.resortbrokers.com.au/In this episode of Resort Brokers Radio, host Trudy welcomes John from Mandala Hotels and Resorts, who previously worked with Asset Solutions. John discusses the dynamics of the accommodation industry, focusing on the unique opportunities available in purchasing properties at a fraction of their replacement cost, particularly those built in the 60s, 70s, and 80s. He addresses the misconceptions around leasehold properties, emphasizing that the right risks can lead to significant financial returns.Follow Resort Brokers:https://www.instagram.com/resortbrokers/https://www.facebook.com/ResortBrokersAustraliahttps://www.youtube.com/@resortbrokersauhttps://www.tiktok.com/@resortbrokersauTimestamps:00:00:00 - Introduction00:01:00 - Guest Introduction 00:01:46 - Mandala Hotels and Resorts Overview00:02:22 - Defining Smaller Properties00:03:39 - Regional Expertise and Property Size00:04:01 - Investment Strategy and Fund Structure00:05:05 - Leasehold vs. Owner-Operator Risks00:06:54 - Market Changes and COVID Impact00:08:21 - Replacement Costs and Economic Viability00:10:07 - Current Market Trends in Domestic Tourism00:10:28 - Repositioning Properties for Value00:11:55 - Cross-Pollination of Customer Bases00:13:30 - Understanding Customer Preferences00:14:36 - Research and Data Utilization00:16:41 - Property Inspections and Historical Knowledge00:19:52 - Market Competition and Strategy00:21:55 - Overview of Investment Funds00:24:13 - Returns and Investor Satisfaction