Resort News, February 2021

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Issue 294 | February 2021 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

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Person of Interest: Guy Elliott Profile: Regal Port Douglas management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

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The legal stuff... The views and images expressed in Resort News do not necessarily reflect the views of the publisher. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. We recommend professional advice is sought before making important business decisions.

Advertising Conditions The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein. Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2021 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

Inside our February issue FRONT DESK Editors Note: 2021 is certainly off with a bang!..............05

INDUSTRY News in Brief .............................................................................. 06 ARAMA Report .......................................................................... 09 State Report ................................................................................ 10 SCA Report ...................................................................................11 BCCM Report .............................................................................. 12 Person of Interest:

14

New ARAMA chairman Guy Elliot in the hot seat! ...... 14

MANAGEMENT Legal Ease..................................................................................... 16 Thinking MR................................................................................. 18 By All Accounts .......................................................................... 19 Motel Market ...............................................................................20 Good Governance .....................................................................22 Intonet ...........................................................................................22 Building Relationships ............................................................24

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Channel Management ............................................................25

TOURISM Tourism Report ...........................................................................30

PO Box 1080, Noosaville BC, Queensland, Australia 4566 Phone: (07) 5440 5322 Fax: (07) 5604 1680 mail@accomnews.com.au www.accomnews.com.au

Tourism International ..............................................................32 The Last Resort ..........................................................................33

EVENTS & APPOINTMENTS EDITOR

Mandy Clarke editor@accomnews.com.au

STAFF WRITERS

Rosie Clarke Grantlee Kieza

DESIGN & PRODUCTION

Richard McGill

ADVERTISING SUBSCRIPTIONS

Stewart Shimmin advertising@accomnews.com.au Gavin Bill subscriptions@accomnews.com.au

CONTRIBUTORS Andrew Morgan, Arvo Elias, Col Myers, James Nickless, John Punch, Kelley Rigby, Lel Parnis, Michelle Scott, Mike Phipps and Trevor Rawnsley

People ............................................................................................34

DEVELOPMENTS Development News ..................................................................36

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PROPERTY New Manager Profiles .............................................................40 AccomProperties Sales Report ...........................................40 Resort News Agent Profile ....................................................42

KEY Commercially funded supplier profile or supplier case study Supplier information or content Suppliers share their views in one-off, topical pieces General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercially funded advertorial but may be included as relevant opinion. Happy reading!

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PROFILE New Managers: Regal Port Douglas one year on .........46

PREFERRED SUPPLIERS The Preferred Suppliers Directory ......................................50 FRONT DESK

46 ResortNews | February 2021


I hope the next 11 months are full of opportunities, but we are far from returning to pre-COVID levels of business yet. Recent events in Queensland and New Zealand highlight that we are only one COVID community transmitted case away from returning to a lengthy lockdown. According to recent stats from STR, Australia’s accommodation industry recorded its worst occupancy levels ever in 2020. While performance metrics in December showed improvements and anecdotally, we have heard that many regional resorts and accommodations were fully booked over the holidays. However, many of you also told us that you suffered due to last-minute cancellations and ongoing strain. Not to mention, March 28 will see the end of JobKeeper, which has been keeping businesses afloat

“The Australian tourism industry will need continued support given the absence of international visitors coming to Australia.’’ A rollout of vaccines is a step in the right direction but the livelihood of many cannot wait for a vaccination programme because it is not an overnight solution. Vaccines must be part of a wider, coordinated approach that will need to consider passes for cross-border travel and in the longer-term, travel confidence would need to be restored.

Mandy Clarke, Editor editor@accomnews.com.au during the crisis despite many accommodation businesses not qualifying for the program. What happens now?

Despite this, all of us in the management rights industry continue to push forward...

Tourism and Transport Forum chief executive Margy Osmond says that Australia “won’t have much of a tourism industry left” without renewed support when JobKeeper ends. Appearing on The Today Show, she called for an extension of the JobKeeper subsidy, or a new version of it to help local tourism operators from sinking. TAA CEO Michael Johnson said:

At Resort News and our industry property portal AccomProperties we have never been busier and more positive. Patrick and I, along with the whole team are preoccupied with providing the best service we can to our Resort News readers and our AccomProperties (AP) resident managers. Himself, Patrick Clarke is at the helm of AccomProperties

(and at the end of the phone) and continues to develop the AP portal in ways to best support resident managers with unit sales and rentals. For me, I admit it is a challenge to meet my killer editorial deadlines, but I never fail to be inspired by the special people that I come across every day. Especially those who against the odds show determination and flair...

EDITOR'S NOTE

2021 is certainly off with a bang!

Like James and Kim Swindles the resort managers of Regal Port Douglas who told us the story of how their world was turned “upside down”. You can read their amazing journey in this month’s profile. Also, in this edition of Resort News we sat down with new ARAMA chairman Guy Elliott to get to know him a little better. When Guy revealed that he is not only a “dog” person but also a huge fan and owner of a very classic “VW Beetle” I knew he was my kind of person! Check out his gorgeous rescue dogs and Herbie the car in our person of interest article, page 14. Cheers, Mandy

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ResortNews | February 2021

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FRONT DESK

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Managers split over benefits Industry leaders are urging the federal government to continue subsidising workers in accommodation businesses after the JobKeeper program ends on March 28.

Mr Johnson’s comments come as a response to claims by Tourism and Transport Forum Chief Executive Margy Osmond that Australia “won’t have much of a tourism industry left” without renewed support when JobKeeper ends.

“JobKeeper was introduced as a way of keeping business afloat during the COVID-19 crisis and in that regard, it has been successful even if it did require some fine tuning,” Mr Johnson said. “Holiday properties have been experiencing good business during the Christmas period, but the holiday season is ending.

©Mizkit - stock.adobe.com

Tourism Accommodation Australia (TAA) CEO Michael Johnson insists there will need to be “some form of ongoing subsidy given the pressures on the tourism industry”.

“Many CBD properties, in particular, are still doing it tough. “Tourism Australia is constantly keeping the Government updated with data about guest numbers and it is our opinion that the Australian

tourism industry will need continued support given the absence of international visitors coming to Australia and the fact we have many areas of the country depending on those people travelling.”

Appearing on The Today Show, Ms Osmond said the industry required “a higher level of support” to persevere through border shutdowns designed to limit the spread of coronavirus. She said an extension of the JobKeeper subsidy, or a new version of it, is “the very least” the federal government could do to help local tourism operators from sinking. However, some property managers will not lament the end of JobKeeper. Kerryn Beck, the general manager of the Shores Holiday Apartments in Mackay, Queensland says a

Rebrand heralds new leader in sustainable multi-utility industry Sustainable utility partners Flow Systems and Meter2Cash have announced a major joint rebrand to reflect the company’s evolution towards a true multiutility provider.

continues to be, instrumental in the creation of the sustainable multi-utility market within Australia in both the retail and agency space,” says Mr Leckie. “We are passionate about creating sustainable communities and buildings of the future.”

Although Flow Systems and Meter2Cash have been operating (in NSW and Queensland respectively) under the same umbrella since 2016, the rebrand represents a significant milestone for the utility providers.

Backed by leading renewables, utilities, property and social infrastructure asset manager Morrison & Co, Altogether delivers off-grid solutions from resources – sun, rain, wind, waste – captured within communities across NSW and Queensland.

Terry Leckie, Founder and Chief Executive Officer of Flow Systems says rather than just moving one part of the group under one of the other existing brands, the new name ‘Altogether’ reflects all of the companies that come under it. “Altogether has been, and

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Capitalising on robust advanced technologies, Altogether’s utility solutions provide significant cost savings to developments, bringing properties to market earlier and creating value for new property owners and residents. Altogether currently owns and

operates nine state-of-the-art local water centres (including the world’s largest in-ground residential water centre at the internationally-renowned Central Park in Sydney) with capacity to provide wastewater and recycled water services to 60,000 customers, alongside an embedded energy business servicing 30,000 customers. “The name change is part of our strategy to emphasise the strength of our capabilities, our growth, and our commitment to helping our clients’ identify their position in the marketplace,” says Mr Leckie. “As part of our growth we are also applying new technology business-wide, streamlining the sign up process, introducing a customer portal for increased visibility and enhanced customer service and improving metering solutions.”

INDUSTRY

Altogether’s services include local community water schemes and embedded energy networks with a third utility – data – planned for introduction later this year. “Whether we’re delivering water, power or data, our focus is on providing reliable and sustainable essential services. Our networks are easier to set up and are resource positive. Nothing gets wasted,” says Mr Leckie. “Managing utilities within an integrated system in each community ensures efficiency and balance. Ultimately this local approach gives communities power and control over use.”

ResortNews | February 2021


federal government campaign encouraging people to travel within Australia and book directly with accommodation providers would be much better for the tourism industry than keeping JobKeeper. “One of the downsides of JobKeeper is that a lot of workers are earning more on JobKeeper than they were earning at work as casuals,” Ms Beck said. “We had a cleaner working 12-15 hours a week who qualified for JobKeeper. So, she was getting $750 a week but taking twice as long to clean a unit as normal to stretch out the hours. In many ways it has been a disincentive to working hard. “A lot of the staff in the accommodation industry are casual and it’s hard to get people to work for a few hours a week when they can get the same money for not working and receive money under the JobSeeker program.” Ross Forbes-Stephen, who manages Cable Beachside Villas at Broome in Western Australia, said JobKeeper

had been a “disappointment” for his business because of its arbitrary application. “I run this business as a partnership, but we were only paid one amount of JobKeeper between two people, while another similar business received three lots of JobKeeper payments because it was structured differently. Effectively they were getting three times our payment for the same work. “We had a housekeeper but she didn’t receive anything because she had started with us after the JobKeeper cut-off date. So, we didn’t get paid for her even though we had paid casual housekeepers all year. “Since the WA borders reopened, we have been flooded with tourists but finding staff is a nightmare. JobSeeker means that casual staff have little incentive to look for work. “Until backpackers are allowed back in the country, we will be doing it tough to find casual workers in the accommodation industry willing to work 15-20 hours a week.”

Call to end OTA tactics gains momentum Resort News readers continue to respond to calls for the industry to unite against OTA tactics, while others explain how they make the system work for them. In response to industry reporter Grantlee Kieza’s latest article on our sister e-newsletter, Accom News, ‘No smooth sailing with OTAs’, readers called out the big OTAs for being “bullies” that “cause fear” for many small business owners. In the article, Rebecca Strang, owner of a property situated

in the heart of coastal towns Coolangatta and Tweed Heads, raised concerns about rate parity and called for a national campaign against the power of overseas-based internet sites and their “iron grip” on Australian hotels, motels, and resorts. In response to the article, Kristyn Slattery referenced entrepreneur Dick Smith’s plea from two years ago, when he expressed how appalled he was by OTA tactics and called on all Australians to telephone accommodation providers directly to make their bookings without paying overseas middlemen a huge commission.

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Kristyn said: “I’ve been channelling my inner Dick Smith for the past few years through my social media channels. More recently I have had some exposure through the local media, education is key, and ‘real people’ telling the story behind the small businesses that are feeling the pinch.

“Let us educate now. Those not in the industry are keen to support us, and often oblivious to the percentage amount heading offshore tax-free.” Adding: “It’s time to take back our industry. Why can’t #holidayherethisyear campaigners Hamish Blake and Zoe Foster Blake take on an ambassadorship!” Another reader, Harrison Brown looks at the issue from both sides and says: “The OTA beast has been created by the demand of guests wanting choice in one location and hoteliers giving themselves, and their marketing, across to OTAs. So, you cannot have your cake and eat it too. “I have been a hotelier and I have been an OTA. As a hotel, you cannot expect an OTA to do all the marketing and promotion to make you visible, then allow you to take customers on to your own website and capitalise. We all know guests look at multiple websites including the hotel’s own before they book.

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©Feng Yu - stock.adobe.com

“Right now, as we look to rebuild our business and recover from the devastation of cancellations in 2020 thanks to COVID, now is the best time to be campaigning and marketing. I’ve been pushing through AAoA and VTIC to try and get a ‘book direct’ condition including in the State Travel Voucher scheme … it’s simple, the government are handing money over, but don’t seem phased that a large percentage of it is going offshore.

operator. It is a bit akin to the virus we are now struggling with, the only difference being that we will find a cure or vaccine to COVID but the OTA virus will ultimately kill its host, the industry in particular the small operators.

will allow you to control the number of rooms you have left to market directly. So, increase your direct marketing and also capture the details of the OTA generated guests so you can market to them directly. OTAs hope to get the first couple of bookings from a customer but are realistic that hotels will try and steal them away. They price this into the commission. Also consider the money you pay to OTAs as the price of acquiring a new direct guest. (lead generation). BUT make sure you market to the guest and make the most of it. Too many hotel and motel owners get lazy or don’t make the time because they are busy with running the property. Hence, they become more reliant on the OTA and so the wheel turns. Good luck.” Another reader agreed with Harrison Brown but says: “This is a two-sided sword. OTAs do make it easy and simple for the guests, they do bring in guests and it is up to the accommodation providers to try and win over the customer to book direct. This is about as much as you can do as an individual operator.

“Yes, in a perfect world you would do all your own marketing, build consistent guests and not use OTAs. But that is a little naive these days. An OTA costs you 15 to 25 percent. How much does employing a marketing team cost?

“What I don’t understand is why our representational bodies such TicSA and the HMAA, and a heap of others, don’t undertake a marketing campaign to inform consumers and encourage them to book direct. Dick Smith would happily take on the role of star power credible advocate.

“So, it’s something you have to live with. But you can make it work. The rates you offer and the allocation of rooms you provide

“These bodies purport to represent us? If funds were needed, then start up a fighting fund. I am disappointed that

our Industry bodies don’t tackle this on our behalf, and we should pressure them to do so. I won’t belong to any until they tackle this issue. “Not to get rid of OTAs as they do a valuable role for the consumer and us but to educate the consumer and allow them to make an informed choice of who they book through/with.” Linda Fox-Boyd replied: “I for one, object to the OTAs; they are bullies, and they got into the system over years of stealth in marketing. They put nothing into my business and are extremely demanding. “They provide marketing yes, that’s it. They hide our marketing campaigns among multitudes of advertising - we can be found around page six. “Every guest that comes into our place is flabbergasted to know that they would have received a far better room, a far better deal, and are advised to use these sites, then book direct.” Timothy Swallow added: “The industry is struggling and while I accept that the OTAs are here to stay it needs to be a more level playing field. Small properties do not have the large network from which to draw bookings despite the amount of marketing that they may and are therefore forced into the commissions the OTAs demand to be able to survive. “Just on an individual booking the OTAs earn more than the property, in some cases the difference is up to 45 percent of the gross as opposed to 13 percent of the net to the

INDUSTRY

“It is well past time that the representative tourism bodies and the governments both state and federal stood up and did something to help.” Mark called for ‘Holiday Here and Book Direct’ to be the message sent by all. Saying: “Keep our Aussie Dollar in Australia. Australians should be supporting Australia’s economy. Think about the amount of money that goes overseas to these overseas owned OTAs, think what that amount of money could be doing for Australians.” A spokesperson from Expedia responded to concerns raised in the article: “Hotel partners in Australia are free to charge higher rates on our marketplace than on other channels, including their own site. However, providing their best prices, content and amenities to travellers who find them on our sites is the most effective way to convince consumers to choose their accommodation over other similar accommodations across our platform. This gives hotels an opportunity to attract and delight more and more new consumers, leading them to come back to their property either through our channel or through their own. “We operate a traveller-centric marketplace and work hard every day to present a highly intuitive consumer-facing online travel platform that enables travellers to find their best travel options quickly and efficiently, helping to increase travel overall and stimulate the economy. “As proven by decades of data analysis and surveys, price is a critical element in consumers’ decision-making process, hence why it is one of many factors we take into account to differentiate otherwise similar accommodation offers in our marketplace.” ResortNews | February 2021


for resilience and success

In any business environment, client confidence, customer satisfaction and commercial success can only be achieved with a proactive focus on building effective stakeholder relationships. In the context of management rights, it is no surprise community living schemes that are harmonious and thriving have a ‘triangle of management’ built on strong foundational relationships. A resident manager’s role within this management structure often sets the tone of the scheme and, depending on which state you are in, working with the body corporate (or owners corporation) committee and body corporate manager (or strata managing agent) to explore new opportunities and identify emerging issues or challenges not only sets a positive tone but also leads to other beneficial outcomes including peace and harmony within the scheme and its inhabitants. 2020 demonstrated just how effective a resident manager is in grasping and delivering on the changing needs of a scheme. Resident managers offer an intimate understanding of how the scheme operates and the varying viewpoints of its stakeholders, and bring the experience needed to provide strategic advice and direction. There is no single playbook for how best to do this, because every scheme is unique, but the most successful management rights operators never lose sight of the importance of building relationships that set up their scheme for resilience and success. A resident manager’s role is varied, and they manage wideranging needs and priorities. However, to build relationships with various stakeholders, ResortNews | February 2021

ARAMA REPORT

Building relationships

Trevor Rawnsley, CEO, ARAMA

it is important to clearly demonstrate how they are bringing value to the scheme. From body corporate committees to lot owners, different stakeholders come and go, but the property will always remain and driving a ‘best for scheme’ approach to decision-making will go a long way towards building good relationships.

as we look to the road ahead, a triangle of management capable of collaboration and agility in decision-making will see schemes thrive. Our Management Rights Industry Training Program (MRITP) explores these important relationships – and how to

develop and foster a culture of success among key stakeholders. As we embark on a new year, I encourage operators to remain focused on building these relationships which underpin the value and longterm stability the management rights model brings.

Resident managers understand the scheme and its by-laws, keep abreast of relevant news and developments, and meet with lot owners, residents and even neighbours regularly. There is no more effective way to highlight the benefits of a scheme managed by a resident manager than to deliver value – be it a superior rental return for the letting pool, or cost efficiencies when it comes to caretaking services. Experienced resident managers actively promote their role and the good work it entails and provide clear and concise reports with recommendations to the body corporate committee. Over time, their operational transparency and reliability builds trust. Resident managers with strong relationships are those who avoid division and disputes, and instead receive support when action is required, because stakeholders are emotionally invested and share a collective desire to achieve success.

Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights.

For membership enquiries:

national@arama.com.au | www.arama.com.au

After what we have learned over the last 12 months, and INDUSTRY

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STATE REPORT

Smoke alarm laws in NSW strata

– are you compliant? Reimbursement for repairs

If you act as a letting agent for an owner of a strata building in NSW, you need to ensure that smoke alarms installed in your rented units are in working order.

A tenant is entitled to reimbursement within seven days after giving written notice of relevant expenses.

Requirements for landlords and agents effective from March 2020: 1.

2.

Where a smoke alarm is not in working order, landlords and agents must ensure the alarm is repaired (this includes replacing a battery) within 2 business days. Landlords and agents must check smoke alarms every year to ensure they are working.

3.

Landlords and agents must ensure that smoke alarms are replaced within 10 years of manufacture, or earlier if specified by the manufacturer. They must also make sure that batteries are installed or replaced every year (or for lithium batteries, in the period specified by the manufacturer).

4.

Landlords and agents must give at least two business days’ notice to inspect or assess the need for smoke alarm repair or replacement, and at least one-hour notice to carry out repair or replacement of a smoke alarm.

©nikkytok - stock.adobe.com

Requirements for tenants:

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Col Myers, Small Myers Hughes

repair or replace an alarm. The different circumstances where a tenant can change a battery or engage a licensed electrician are provided in the table below.

The notice must detail the nature and cost of repairs together with copies of receipts or invoices. This does not apply to social housing tenants. Liability limited by a scheme approved under Professional Standards Legislation. Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

Responsibilities for certain types of alarms: Battery-powered alarms Responsibility in strata premises The landlord, agent or person authorised by the landlord, unless the Owners Corporation is responsible (this will be indicated in the tenancy agreement). If the Owners Corporation is not Replace an responsible, the tenant can arrange for replacement alarm unit if the landlord or agent does not do this within two business days of being notified that the alarm is not working. The tenant must notify the landlord or agent within 24 hours of the work being completed. Battery operated alarm units should not be repaired Repair an unless the repair is changing the battery in the alarm unit alarm, otherwise, the alarm unit should be replaced. The landlord, agent or person authorised by the landlord, unless the Owners Corporation is responsible (this will be indicated in the tenancy agreement). If the Owners Corporation is not Change a responsible, the tenant can arrange for replacement removable if the landlord or agent does not do this within two battery business days of being notified that the alarm is not working. The tenant must notify the landlord or agent within 24 hours of the work being completed.

Hard-wired alarm

Tenants must notify their landlord or agent if they discover that a smoke alarm is not working (this includes when the battery needs to be changed). Tenants must also notify their landlord when they change a battery in a smoke alarm or engage a licensed electrician to

Responsibility in strata premises A licensed electrician arranged by the Owners Replace Corporation if they are responsible (this will alarm unit be indicated in the tenancy agreement). Repair A licensed electrician arranged by the landlord or alarm unit agent if the Owners Corporation is not responsible. Change The landlord, agent, or person authorised removable by the landlord, unless the Owners back-up Corporation is responsible. battery

INDUSTRY

ResortNews | February 2021


Strata Community Association (Qld) has backed many of the recommendations in the ACCC’s final report on insurance in Northern Australia, but we believe that they need to be done right and take industry insight into account to be effective. Over the three-year duration of the inquiry, we have worked with the ACCC, providing detailed analysis and information relating to the rapidly growing strata sector in Queensland. SCA (Qld) has surveyed members for our submission to the ACCC, finding that the quality and transparency of insurance information supplied by insurers should be improved. SCA (Qld) was one of many stakeholders who called for greater clarity on the factors impacting premium pricing. In 2019, SCA (Qld)’s submission highlighted affordability and availability examples in North Queensland (NQ). In our view availability appears to be the biggest issue facing our members in Far North Queensland (FNQ), with affordability a very close second. I have consistently heard stories of consumers in NQ saying their choices are very limited when they try to choose policies and insurers and while this did not receive as much attention in the final report and its commentary, we will be highlighting the issue in our advocacy efforts. In the last decade, non-insurance rates have increased in Northern Australia by between seven and nine percent which is very disconcerting. Since 2011, there has been a 178 percent increase in premiums in Northern Australia versus 52 percent elsewhere. Northern Australians have a $2,500 premium versus ResortNews | February 2021

Recommendation: Standardise definitions of prescribed events The Treasury’s review of the standard cover regime should develop a proposal to standardise the definitions of prescribed events (including ‘action of the sea’, ‘impacts’ and ‘storm’) to enable greater certainty for consumers and comparability of products. James Nickless, President, SCA, Qld

a national average of $1,400 – this includes single dwellings as well as strata schemes. Northern Australians paid $79.6 million in stamp duties in 2018-19. Between 2007 and 2012, strata insurance premiums in North Queensland had increased by over 300 percent. I was encouraged by the ACCC’s recommendations and its focus on reducing costs through the abolition and re-basing of stamp duties and direct subsidies for premium holders but pointed to further taxation and levy reform across jurisdictions that needs attention.

Recommendation: Strata managers to be remunerated by body corporate only The recommendation must take into consideration that strata managers are critical to keeping the consumer informed, sourcing insurance policies, negotiating terms and conditions, processing claims, renewing policies, and filing reports and updates based on building repairs and maintenance. Recommendation: If governments want to provide immediate relief to consumers facing acute affordability pressures, they should consider direct subsidies over other measures

It is an immediate win to embrace the recommended reduction or abolishment of stamp duty and considering direct subsidies to targeted consumers, whether temporary or permanently. These measures have potential to save lot owners much needed money, if they are implemented and funded effectively. Stamp duties account for up to 10 percent of the premium price, so when you are looking at the average premium of $2,500 in North Queensland, that’s an immediate $250 that each consumer in a strata lot could be putting back in their pocket.

The ACCC investigated the relative merits of measures including government reinsurance pools, government insurers, direct subsidies, mitigation programs and licence conditions. If governments want to intervene in the affordability and availability of strata insurance products, they should consider doing so through direct subsidies based on both premium level and income eligibility requirements. SCA (Qld) also sees merit in a reinsurance pool. rather than government reinsurance pools or other measures.

I believe that the release of this report is another step in the long process of delivering better outcomes to strata communities in NQ. The recommendations that affect the industry are the following:

Recommendation: Rebase stamp duty; use stamp duty revenue for affordability and mitigation If stamp duties on insurance are maintained, Queensland INDUSTRY

SCA REPORT

ACCC Northern Australia Insurance Inquiry report addresses strata solutions for strata in QLD should reduce the tax burden on consumers in higher risk areas by levying stamp duties for home, contents, and strata insurance with reference to the sum insured value, rather than the premium level. SCA (Qld) supports that a portion of revenue from stamp duties on insurance products (however they are levied) should be directed towards measures to improve affordability for low-income consumers or to fund mitigation works. Recommendation: Expand the remit of the Australian Building Codes Board to include property protection SCA (Qld) supports the focus on defects and the recommendation that all levels of Government should expand the remit of the ABCB to explicitly include property protection as an objective to pursue through the National Construction Code and referenced Australian Standards. Recommendation: Extend and expand the North Queensland Strata Title Inspection Program The North Queensland Strata Title Inspection Program is due to end on June 30, 2021. SCA (Qld) has supported the program since the start and welcomes the prospect of an extension of the program and possible expansion to other parts of northern Australia. We have been working hard on identifying potential solutions since affordability and availability issues really intensified in the last few years, and we will continue to use our strong industry voice and our expertise to push for consumer interests. I am looking forward to working with government and regulators on the issues specific to strata insurance such as body corporate manager remuneration for their work on insurance matters for bodies corporate.

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BCCM REPORT

Standard Module changes: committee membership Committee membership is a key topic of many of the enquiries we receive in the Body Corporate and Community Management (BCCM) office. From March 1, 2021, several changes – some significant, others smaller – are being made to the body corporate and community management Standard Module (SM) regulations relating to committee membership. Aside from outlining the differences this will mean for committees, this article seeks to highlight the rationale for the changes and potential benefits.

Co-owners and family members – section 11 SM The current regulations follow the general principle that usually there can only be one committee membership per lot. However, as the current regulations also permit an owner to nominate a family member or a person exercising the owner’s power of attorney for the committee, the current regulations regarding committee membership have often raised queries. The most common question has been, if the regulations prevent co-owners who own only one lot from being on the committee at the same time, why are both husband and wife joint owners on our committee? For some who considered that an owner was using the ability to nominate a family member or power of attorney strategically to affect committee outcomes, this has been a contentious issue and even viewed as a “loophole” in the current regulations. The new provisions seek to close this “loophole” by specifying that a lot owner cannot be a voting committee

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Michelle Scott Commissioner, Body Corporate & Community Management

member at the same time as a member of their family, a person acting under the authority of a power of attorney given by the owner, or a coowner, unless they are the owners of more than one lot. This change will mainly be relevant where there is ownership of only one lot. Where more than one lot is owned or co-owned, the position would be largely the same as it was previously. For example, if co-owners Bill and Rachel own two lots between them, it would be possible for Bill to be a committee member based on ownership of the first lot and for Rachel to be on the committee at the same time based on ownership of the second lot. Likewise, if an individual owns two lots, it would be possible for that individual to be on the committee based on ownership of the first lot, while a member of their family or a person acting under a power of attorney given by the individual is a committee member based on the individual’s ownership of the second lot. As is the position under the current regulations, co-owners can also still be on the committee at the same time – even where they only own one lot – if it is necessary to bring the number of committee members to a minimum of three.

Three owners or fewer (minor committees) – section 13 SM

the further requirement that the system cannot disclose the identity of the voter.

The current regulations deem a procedure for choosing the committee where all lots are in identical ownership, or there are two owners for all lots, which avoided the need to choose the committee at the annual general meeting.

As well as increasing flexibility, the ability to cast votes electronically for committee elections is a move towards modernising body corporate regulations so they better reflect advances in technology. The regulations will cater for commonly used devices when casting votes (namely computers, smartphones or tablet computers).

From March 1, this procedure will extend to an additional scenario – three or more lots with three different owners. Instead of choosing a committee at an annual general meeting, three owners will be able to decide between themselves which of the executive positions they each will hold. In the event of a disagreement, the three owners will hold the executive positions jointly. This makes it easier for a body corporate with three owners, as it avoids the possibility of conflict when choosing which owner will hold which executive position. A committee formed under this section with three or fewer owners will be called a “minor committee”.

Electronic voting for committee ballot – Sections 24 and 29 SM Currently, electronic voting is not an option for committee elections. From March 1, 2021, if the body corporate passes an ordinary resolution, voters will be able to vote electronically to elect committee members. This option will only be possible if the body corporate can implement an electronic system that rejects the vote of a person who is not eligible to vote or who has already cast their vote in the election. The system must also ensure that only the secretary is in receipt of the electronic votes. For a secret ballot, there is

INDUSTRY

Maximum number – Section 38 SM There has been some doubt on the part of both residents and body corporate managers about when nominations for committee membership must be invited from the floor of annual general meeting Although a definition of “required number” was provided in the current regulations, the wording of this requirement, and use of a range for the required number, made it unclear whether a number of nominations must be called for in order to bring the number of voting committee members to a minimum of three, or to a minimum number of seven (or the number of lots if there are fewer than seven lots). The new provisions which commence on March 1, 2021 seek to clarify this by removing the term “required number” entirely. The relevant section when it commences will provide that the person chairing the meeting must invite nominations from the floor if the number of committee members is fewer than the maximum number, to attempt to bring the total committee members to the maximum number. The dictionary in the standard module will provide a clear definition of the term “maximum number”. The rationale for this change is to encourage the greatest ResortNews | February 2021


number of owners to serve on the committee. Arguably, greater owner representation on the committee promotes a more robust committee with a healthy diversity of opinion.

Principal schemes – maximum committee size of twelve

Engaging a body corporate manager in place of the committee – section 74 SM

Benefits from a caretaking service contractor or service contractor – section 79 SM The new regulations will introduce clear restrictions on the benefits that a committee member may receive from a caretaking service contractor from March 1, 2021. While the current regulation already deems an associate of a service contractor as ineligible to be

ResortNews | February 2021

The Body Corporate and Community Management Act 1997 provides for layered arrangements of community titles schemes, where a lot within a scheme may itself be a scheme comprising lots and/or other subsidiary schemes. The top layer in such arrangements is called a ‘principal scheme’. ©serdarerenlere - stock.adobe.com

A body corporate manager can be engaged to carry out the functions of a committee and its executive members where, in specified circumstances, the committee for the body corporate does not have sufficient members. The motion to engage a body corporate manager in place of a committee (often referred to as a Chapter 3 Part 5 engagement) under the expiring provisions, needs to be a secret ballot. The new provisions that come into effect on March 1, 2021 will allow the body corporate to pass a motion by ordinary resolution to conduct an open ballot to decide this type of engagement. This change is aimed at reducing the body corporate costs associated with secret ballots and decreasing procedural burden on community titles schemes.

the body corporate has authorised the committee member to receive the benefit by ordinary resolution.

a voting committee member, and prevents committee members from voting at the committee level where they have a direct or indirect interest in the issue being considered, the new regulations will provide further safeguards. In particular, section 79 of the Standard Module will preserve the impartiality of voting committee members in certain circumstances and prevent them from giving preferential consideration to a contractor. Also, as a caretaking service contractor is automatically a non-voting committee member, this provision may assist in limiting their influence on committee voting.

The new regulations will specify that a committee member is only able to receive a direct or indirect benefit if: •

from a caretaking service contractor, it is the supply of, or payment for, a letting agent business service conducted by the contractor; or

from a service contractor, it is the supply of, or payment for, a service the body corporate has engaged the contractor to provide, or a service, such as lawn mowing or other maintenance, that an owner of a lot has engaged the contractor to provide at market price; or

INDUSTRY

Community titles schemes are increasing in average size and complexity, with this trend expected to continue. From March 1, 2021, the new Standard Module will allow the body corporate for a principal scheme to decide, by ordinary resolution, to increase the maximum number of committee members for the principal scheme to twelve members. This will provide for broader representation where there are many subsidiary schemes, without allowing excessively large committees that would likely prove unworkable. Similar changes will come into effect where relevant for body corporate committees of accommodation, commercial and small scheme modules. Further information about how these changes will apply to your scheme can be found on the Office of Commissioner for Body Corporate and Community Management website.

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PERSON OF INTEREST

t t o i l l E y Gu in the hot seat! New ARAMA chairman:

By Grantlee Kieza, Industry Reporter

New chairman of ARAMA, Guy Elliott spoke exclusively with our industry reporter Grantlee Kieza this issue‌ Q: I understand you run the Sailfish Point Resort in Mermaid Waters? A: My partner Kathryn and I bought the management rights five years ago when we were both 35. It is a permanent complex with 99 townhouses. We are also the onsite real estate agents (GKM Real Estate Mermaid Waters), so we do property management and specialise in sales. Living onsite, we are able to fix any problems at the complex very quickly. Q: How did you get into the property business? A: It was through my parents. My father has been in management rights for well over 20 years. We are from Blackall (Western Queensland) and he was a miner working in Blackwater, west of Rockhampton. He got into management rights at a property in Currumbin in the late 90s after a mate who was in real estate explained to him that it was a great business. Kathryn and I came down to visit on the Gold Coast and the lifestyle and the type of business really appealed to us.

Guy Elliott

There would have been no guarantees for anything. In this business we have a maintenance contract to do the gardens for 21 years. Where else could you get that sort of security. For 21 years I know what sort of money I am going to get. However, many years ago, my grandfather used to do up Volkswagen Beetles and he made one exactly like Herbie. We used to tinker with them together and Herbie has

now been with me for over 20 years and is always part of my business in some way. Q: What are some misconceptions in management rights? A: People sometimes think it is an easy job, but it is not. For instance, we are managing 99 houses and people who all have different requirements. It requires a very specific skill base.

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A: The communities out that way are remote and a lot smaller - 1500 people. Some of the jobs I would do required me to drive 300 kilometres each way and often across dirt roads, not bitumen. Management rights mean you are also working in a small community but learning the skills for management rights takes time. You learn along the way. You learn on your feet. Q: When you were a kid in Western Queensland, was running a property on the Gold Coast your goal? A: When Kathryn and I were younger we just wanted to travel. We travelled the world for a couple of years.

Q: What work were you doing at the time? A: I had a mechanical workshop at Blackall where Kathryn and I grew up. When we moved to the Gold Coast, I could easily have started a mechanical workshop, but I would have started with no customers – just a sign out the front - and I would have had to wait for customers to come in.

Q: Did you acquire that skill base in Blackall?

Guy with Herbie

INDUSTRY

We worked at a ski resort called Big White in Canada. Kathryn managed the hotel side of it, and I did the maintenance. We were exposed to that whole area of management rights though we did not realise it at the time. We have always run our own businesses. Kathryn had coffee shops, giftware shops and other businesses out in the bush. ResortNews | February 2021


Q: Are you still a keen skier? A: We used to go skiing most years, but it is hard for us now to both get away together. We have done a lot of travelling in any case, and we feel that living on the Gold Coast is like a holiday all the time. Q: What’s the best part of your job?

to people who have been in the industry so you can get guidance on what you are buying and how it’s run because every management rights deal is different. There is a certain skillset you need, life experiences, and that is probably why it appeals to people later on in life. Management skills really come

from life experiences, but you can learn it - it’s just a matter of being willing to learn. Any good manager will tell you they have a good system and processes. Q: What have been the biggest changes in the industry? A: Apart from all the COVID restrictions and border closures, it has been technology. In

A: The flexibility and the job security. Even in COVID there is a certain security in managing permanent residential properties. During the stock market crash of 2008, permanent management rights still held very strong. It is a very stable industry; you know what you are going to earn every year. So long as you get the work done, the hours can be very flexible, too. Sometimes I am up at 04:30 to clean the pool so I can get to the golf course later in the day. I do not have kids - only two small dogs - but if you have a family then a management rights job like this is perfect because not only is their flexibility but you can work from home.

It is very important to talk ResortNews | February 2021

Q: Do you get the chance to play much golf? A: I do play a bit, but I have gotten into caddying and I’m doing that for Michael Wright, who plays on the Australasian Tour. We flew up to the Northern Territory with him for the last tournament and I carried the clubs for three days up there. Q: If you were hosting a dinner party, who would be your first guests? A: Tiger Woods and his caddie. I’d like to talk to Tiger but I’d like to talk to the caddy to get the real story. Q: What is your advice for people starting out in their careers?

Q: It is not a job for everyone, though? A: I have seen a lot of people fall into traps because they just do not know what they are buying. Holiday management rights are usually not always so flexible as permanent lettings because you have people turning up on your door to check in at all different hours.

the last few months, the use of video has increased dramatically. When I talk to owners about maintenance and repairs, instead of just an email I now send them a video showing them the issue. That makes things so much easier for everyone.

Guy and Kathryn with dog’s Lilly the Cockerspaniel and M&M the Chihuahua.

INDUSTRY

A: Invest in yourself. When I was young all my mates in the bush were going shearing and making a lot of money, but shearing is only a good skill in the bush. Instead, I took a job for $4 an hour and invested in myself as a mechanic, which paid dividends. These days, young people should be looking at industries where there’s a need, like developing software.

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LEGAL EASE

Working in harmony I was very pleased to see the Resort News published item in the last edition from Trevor Rawnsley of ARAMA, pointing out the importance of good relationships in the body corporate spectrum of interested parties. I recommend that all managers and owners read and consider this article. I cannot stress more definitely that it is an essential aspect of management rights that the manager keeps a good relationship with everyone; letting owners, live in or lock-up owners, the body corporate manager, and the tenants of lot owners (whether in the manager’s letting pool or not). I know it is a big ask sometimes, such as when those parties are feuding, as often happens in communal living. However, having the best possible relationships with owners and body corporate managers, particularly, will count when the manager needs a term variation for the caretaking and letting agreements, or any other activity that impacts on the management rights business activity.

need ‘majority support’ at all times when it comes to the body corporate and its owners. The BCCM Act specifies that any decision of consequence – those that alter the rights and entitlements of lot owners in any way – must receive approval at a general meeting, where the minimum vote is at least a 51 percent majority of those owners who do bother to vote. However, the committee can have a strong effect in persuading owners on how that vote might be made. I am reminded of this, recently, when a client had bought the management rights in a Standard Module Scheme, even though most of the lots in the scheme were accommodation lots, used for long or shortterm letting. After 18 months, the manager realised that the

Then, we were also able to advise that the current caretaking and letting agreements must be remade (with the same terms and conditions in a fresh form of agreement) but with effect from a date being after the new CMS was recorded at the titles office. This was necessary to give the Agreements a term of up to 25 years, including any options, rather than having the process of working to the existing lesser 10-year maximum term limitation applying under the standard module, with an ordinary resolution by simply majority vote. Effectively, this meant ‘two bites at the cherry’, you might say, in that both the concepts of a new CMS – with a change to the module – and a new set of agreements, had to be

explained to the client and then, in a convincing and easily understandable way, to: •

The committee;

The body corporate manager; and

The owners.

Often, it happens that when the onsite manager seeks change, the body corporate manager feels that a lawyer needs to be appointed for the body corporate to advise the committee and the owners. This can then lead to a selection of a lawyer who automatically adopts an ‘adversarial approach’ and seeks to find negative reasons which go against the proposed activity, which does not assist the managers to have the vote needed. While it has nothing to do with considering the proper legalities of the material being dealt with, I have found some lawyers have argued that agreements should not be extended because of the financial ramification of the body corporate paying for another five years remuneration, as a financial liability. What is not pointed out is that the activity has benefits for the owners in having certainty of responsible caretaking and management, at a fixed cost, for a longer period!

©napatcha - stock.adobe.com

The golden rule is that you

John Punch, Short Punch & Greatorix

correct and most suitable regulation module for the management business was the accommodation module. My firm was able to explain to the body corporate and its owners that the law enabled the scheme to change module of regulation but that the process required a special resolution (effectively a 66 percent majority vote and not more than 25 percent negative vote, by those owners voting) and a new community management statement.

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MANAGEMENT

ResortNews | February 2021


It is pleasing to report that my client’s good standing with the owners, the committee, and the body corporate manager, won out. Both motions were passed and today, the transition to the more secure arrangements have been concluded in a very harmonious, but business-like fashion.

can be made right! It is almost like US politics, which ends up with everyone hurt. Obviously, if the manager and the body corporate manager can work in parallel unison, to counsel the committee and the lot owners to come to reasonable arrangements, harmony is achieved.

The word ‘goodwill’ needs to be considered and emphasised in every scheme and, these days, it seems that it is only something used by valuers and accountants as relevant to the value of a business. No value can really be put on having an attitude of goodwill prevailing in a scheme, creating harmony. Onsite managers should never take it for granted that lot owners fully understand and appreciate their involvement in successfully conducting the caretaking of the common

francescoridolfi.com - stock.adobe.com

A good relationship may allow the manager to ensure that appointment of adversarial lawyers is avoided, and that legal comment is limited to reviewing and explaining the wording of the motions and documents.

property, together with the letting of their lots, to run smoothly. Constant information in written reports to all owners, not just the committee, is the best way to achieve this. Just commenting on simple things like small improvements and repairs made to the common property by the manager or informing owners of the rate of vacancies of letting lots in the letting pool, will keep

owners appreciative and supportive of the work onsite. I have also, unfortunately, experienced for another manager client, a scheme where everyone is in the attack mode and the idea of the body corporate acting unreasonably in its decisionmaking (as required by the Act) is replaced with fights between lawyers, asked to decide on how a wrongdoing

On a different note, it is interesting to note that the assumptions of many body corporate managers and lot owners is that the owners who live onsite have a monopoly, or priority, on needing to be catered to by the body corporate, comparative to those owners who let their lots. However, a recent survey conducted by SCA (QLD), the association of body corporate managers, found that less than 20 percent of all strata-titled residential lots in Queensland are owner occupied! This means that at least 80 percent are either rental accommodation or lock-up lots for occasional use. A very interesting result!

Hotel Equipment & Refurbishment Finance with AFA The constant requirement for property improvements in the hotel market is essential but it can also be expensive. you to improve your property without having to part with your hard earned capital. accommodationfinance.com.au 1300 287 178

ACCOMMODATION FINANCE AUSTRALIA

ResortNews | February 2021

MANAGEMENT

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We first published this article in 2016. We called it “Taking the Next Step, Are you Ready?” At the time we thought interest rates were low and demand for a lifestyle change among corporate types and small MLR operators was prett y strong. Turns out Bachman Turner Overdrive were right... you ain’t seen nothin” yet! Come 2020 and the great COVID-19 reckoning, and it seems everyone is moving their plans forward. In the hotel management and hospitality space managers who might have planned to do their own thing in 10 years are now looking to do something in a much shorter time frame. For many the prospect of running their own show and leveraging their skills to value add to their own business just makes good sense. Given the scale of property that many industry professionals have been running the partnership model is compelling and allows access to businesses that might otherwise be out of reach for a single individual or couple. Of course, for hospitality professionals the final decision is very much in the hands of those who control our state and international borders but there’s no doubt that people are ready to move. My expectation

Mike Phipps, Director, Mike Phipps Finance

is that as soon as some certainty returns to the tourism sector, we will see a migration of managers from corporate life to full or part ownership of management rights and other accommodation assets. Needless to say, if you are one of those contemplating a change we are here to help and look forward to having a chat. Anyway, edited and updated but largely unchanged (except for interest rates) here is how we see things today. Human ambition is an interesting thing. Even while confronting the terror and stress of a new role or business venture many of us are already thinking about the next step. I reckon it’s all part of our innate survival instinct ingrained into us as a species. I’ll bet that even while our distance neanderthal cousins were dragging that Brontosaurus back to the cave

QLD - NSW - VIC - WA

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©WindyNight - stock.adobe.com

THINKING MR

Tired of making money for someone else?

Come 2020 and the great COVID-19 reckoning, and it seems everyone is moving their plans forward...

they were already planning the next hunting expedition and perhaps some improved techniques and a more effective and efficient conquest. All the better to improve one’s lifestyle and avoid the risk of becoming dinosaur poo! This thirst for improvement and the next big step is certainly alive and well in the management rights industry. The vast majority of our clients, having mastered the day-to-day management skills inherent in successful business operation inevitably turn their thoughts to the next step up. For some they can sell their existing business and have the fire power to go bigger by themselves. However, for many operators there is frustration as they build the necessary skills to operate quite large businesses but lack the equity to go it alone in a big high net profit property.

MANAGEMENT

This dynamic can lead to a disconnect between skill sets and business size where the business operator is arguably overqualified but lacks the financial capacity to step up to the sort of business they are qualified to operate. In fact, the same can also apply to salaried on-site managers. They develop strong skills and drive value within the business while creating no additional wealth for themselves. Fear not, I have a plan. Just as there are experienced management rights operators looking for the next opportunity there are investors looking for somewhere to place their spare cash. Hopefully somewhere that might yield a better return than bank interest, property or shares. Given the abysmal returns in many asset classes that wouldn’t be hard. ResortNews | February 2021


The operator of the rights is referred to as the managing partner (typically a husbandand-wife team or similar) and is paid a salary package by the partnership. This will usually consist of a cash component and the use of the managers unit in which to reside. In most cases an allowance is made to cover relief for 4 weeks holiday and utilities and levies associated with the managers unit are paid by the partnership. Reasonable supporting labour costs are allowed in the budget and a working capital reserve is also maintained. On top of the salary the managing partners receive a return on their equity investment. If they are 20 percent shareholders in the partnership, they will receive an equivalent distribution of profits after bank interest and liquidity provisions. It is important not to confuse the salary paid by the partnership with the working partners investment dividend. They are two entirely different matters and should never be combined to reflect a total income. Doing so distorts the real return as there is a return for labour and a separate return on equity. They are totally different matters albeit investors love the idea of the managing partners having skin in the game. I hate that expression, but it serves its purpose in this context! Equity calculations are pretty simple. We take the total purchase price, add costs and working capital allowances, take off bank debt and the balance is the required equity. Most investors will look at their slice of the total equity ResortNews | February 2021

pie, analyse their likely cash return and convert that to a return on equity figure. Provided the return is appropriate for the perceived risk in the deal investors are likely to proceed. As you can see the managing partner essentially has a duel role. On the one hand they are investors in the ownership of the asset and on the other hand they are employees of the partnership. I use employee as a broad term, it may well be a contract arrangement, but you get the idea. I cannot talk about this subject without a word on debt and gearing. At present interest rates are at record lows so the miracle of leverage plays a big part in the success of these transactions. In this case what we are talking about is the ability to borrow at sub 3 percent variable rates and acquire an asset that may well be showing a 14 percent return on investment and a >20 percent return on equity. Clearly the more of that sub 3 percent money you can get your hands on the better the return on equity will be. However, a word of caution. We do not support the concept of fearless gearing nor do we believe that rates will stay low forever. Prudent borrowers will always plan for interest rate fluctuations, cyclical trading conditions and some volatility in asset values. Placing a portion of the total debt on P and I and taking a slightly lower return makes sense to us and builds a buffer for the inevitable speed bumps. It’s fair to say that there’s a lot more to these transactions than I can cover in this forum. If you would like to know more or are contemplating the next big step give me a ring. Disclaimer: This article does not constitute investment advice. We are not financial advisors, nor do we hold an AFSL. The percentages and concepts used are for illustration purposes only and should not be relied upon in any manner. Parties contemplating the purchase of any business or any investment should consult their professional advisors. PS…never heard of BTO… check out YouTube or ask your Dad!

Minimum wage increase for workers

BY ALL ACCOUNTS

So, how might all this work? Typically, an operator or an investor will approach us and express some interest in purchasing a management rights. They may have one in mind or they may simply be on the hunt. They will seek our input in terms of funding options and in many cases ask us to help manage the acquisition process end to end. We are seeing many investors using self-managed super funds to invest albeit these types of decisions are obviously taken in conjunction with independent legal, compliance and tax planning advice.

The Fair Work Commission has announced a 1.75 percent increase to national minimum wage in the Annual Wage Review 2019/20. The hospitality industry, among a number of other sectors, are required to increase pays effective February 1, 2021. Despite the Australian Chamber of Commerce and Industry, and other industry bodies arguing there should be no increase at this time. After 12 months of feeling the impacts of COVID-19 on the accommodation industry, a big focus has been keeping costs low for small and medium businesses. So, an increased wages bill is the last thing many accommodation businesses need right now. On a brighter side, this increase in award wages is the lowest increase we have seen in several years and the commencement date of the increase has been deferred from the usual July 1 start date to February 1, 2021. For the average worker in hospitality the increase amounts to around $13.00 per week. With the increasing cost of payroll, many businesses may look to engage workers outside of their payroll system, avoiding the increasing minimum award hourly rates and the additional superannuation costs and compliance thereof. Workers may offer this as their preferred option resulting in less cost for you and more money in their pockets if you are not paying part of

MANAGEMENT

Lel Parnis,Partner, Holmans Accounting

their wage to their super or the ATO as tax on their behalf. What is the harm? If a worker is a deemed an employee by the ATO, you are legally bound to pay them under the appropriate award, withhold tax and pay employer superannuation directly to their nominated superannuation fund. Unfortunately, simply ‘deciding’ whether to engage staff as employees or contractors is not an option. The penalties of meeting your employer obligations in this regard are severe, with interest and penalties of up to 200 percent of any unpaid taxes and superannuation. Further, directors can be held personally liable for employer related debts (superannuation, PAYGW tax). Not a great time to be increasing the payroll costs for a struggling hospitality industry. But worse still would be being subjected to an ATO or Fair Work review for failing to meet your employer obligations, and the costs associated therewith. Please take the time, now, to review your current payroll setup to ensure you are meeting all your obligations. If in doubt seek professional advice.

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MOTEL MARKET

Motelier management is in demand As with many professions, demand for people to fill positions fluctuates depending on how the industry is performing. A timely example is that increased demand for fresh fruit and vegetables, combined with fewer overseas workers, means there is a higher demand for pickers and workers in the agriculture industry. The motel industry is no different in that demand for managers fluctuates with changes in demand for accommodation, occupancy, or trading activity. Around 2012, demand for motel managers was high, then declining for four years or so, until increasing again during 2017. All in-line with fluctuations in demand for accommodation. It would seem likely that on the back of increased demand for accommodation over the past six months, after the downturn due to COVID-19 lockdown, that demand for managers is again on the rise. Essentially, if business is good, that can bring about a change in attitude and lifestyle considerations where one may look to step back and take more time for oneself, knowing the business is performing well. Often not having the weight of financial pressure can be a catalyst to this. In times when business trading and confidence declines, cost-cutting measures are re-employed and reducing expenses such as management wages is common practice.

Andrew Morgan, Queensland Tourism and Hospitality Brokers

The ownership of a successful motel business from afar, without having to operate it is common. Professional management is often comprised of a husband-and-wife team or individual experienced in operating motels who has a genuine interest in improving the trading performance of the motel over and above its current trading. Sitting at reception and trying to look busy is of no interest. In the past it was the norm to enlist anyone who said yes to the question, and the owner’s expectation was that this arrangement would work. In many cases it did not work, and it ended up resulting in motel managers in general receiving a bad reputation. The old saying still rings true, if you pay peanuts you get monkeys. The manager’s remuneration is dependent on a number of things, including

experience, roles, performance, skills, etc. If a manager feels they are being underpaid (rightly or wrongly), it is highly likely their level of service (particularly being in a service industry) to the business and guests will be diminished. This results in a poorer motel operation and damage to the business’ reputation and performance. It must be said that placing any business, including a motel under management, and expecting it to be a set and forget situation is fraught with danger. Managers are employees and require the direction, guidance and input only the business owner can provide. Many motel owners in recent times have owned and operated a motel for a period and have then acquired another or more. The owner takes the role of overseeing the businesses and relief managing as required. Staying involved in a supervisory role over management is prudent and necessary to maintain the standards that the owner expects for the business. A common industry question is, ‘how much should I pay a manager?’ Remuneration packages for motel managers are generally determined by the market and the negotiation process between the employee and employer. The type of motel involved, and particular work required to be completed by the manager will affect the

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Management packages can be fixed salaries or in many cases are a fixed salary plus a bonus system based on the achievement of certain goals, such as reaching a sales income target or profit target for a particular period. The general type of manager is the more permanently employed manager or contractor, however the often more highly soughtafter role by moteliers is the relief manager. This is more of a short-term posting to allow the owner time to get away from the business for a break rather than a more permanent arrangement. Between a couple of days and a couple of months is usually the relief managers term, and this type of relief management can be very valuable to a business owner. Allowing them to get away, recharge the batteries, clear the head, and come back to work ready to go.

© Rio Lecatompessy on Unsplash

With the expectation of a continued increase in demand for motel managers going forward, let us consider a bit more about this decision. Some investors buy motels with the direct intention of having them operated under management. Others operate the business themselves and then due to whatever the circumstances, employ a manager thereafter.

level of the package. Is the manager required to manage the property, cook, clean, complete the accounts, etc.? This will be different from one motel to the next depending on the size of the property, type of clientele, whether there is a restaurant onsite, the location of the property, the requirements of the employer and the skills of the employee. There may be a living allowance built into the package for onsite accommodation, food, and beverage.

MANAGEMENT

ResortNews | February 2021



GOOD GOVERNANCE

Building defect assessment review - Quotes now required for defect inspections at second AGM for all new buildings Building defects are not always a sign of “shonky” building work. The reality is, building defects are a fact of life and even Tier 1 builders leave defects behind, despite their best internal quality control and compliance management efforts. According to Australian university research, 100 percent of new buildings inspected by qualified building inspectors have defects.

INTONET

The Body Corporate and Community Management Act of

The earlier defects are picked up, the better for both lot owners and whoever holds the obligation to rectify under the statutory builder’s warranty.

Defect liability period Lynda Kypriadakis, Diverse FMX

Queensland is now supporting pro-active bodies corporate and developers/builders to ensure a thorough professional building inspection is done as early as possible into the life of the newly registered scheme. At

Non-structural defects (previously referred to as “Category 2 Defects”), such as delaminating tiles, missing grout, fraying carpet, fouling doors/ drawers/windows, etc. have a 12-month defect liability period. These defects typically present inside apartments and offices, or in recreational facilities within

the common property. These defects need to be picked up and reported to the builder within 10-11 months past the Certificate of Classification in order for these to be rectified prior to the expiration of the “Non-structural Defect Liability Period”. Structural defects (previously referred to as “Category 1 Defects”), such as water leaks, significant cracks, delaminating waterproof membranes, safety issues, etc have a six years and six months defect liability period. These defects typically present on the common property of the scheme, in the riser cupboards and service areas, plant rooms and basement car park areas. These defects need

Your car knows more than you think Your car is your friend, right? You trust your car to take you wherever you want, safely, right? Maybe you even have a nickname for this friend. I do! Only because mine is a very old car - I call her Neffi. That is short for Nefertiti, the 14th century BC queen of Egypt and wife of Akhenaton. I know the ages do not match exactly but I wanted an exotic old name and this convoluted association created it for me. Yes, I know! The point of telling you all this is that my wife, who would not be seen dead in an old bomb, drives one of the latest cars with all the bells and whistles. She insists on a modern car for, I suspect, no other reason than

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the second AGM of the scheme legislation mandates that at least two quotes for defect inspections must be tabled for voting.

radio stations could be selected, music could be streamed and navigation via Google Maps worked like a charm. Everything was voice activated and the system, when appropriate, could also talk back to her. Great, until I came across a court report from Tasmania!

Arvo Elias, Cybercons

to allow her to plug in her mobile phone so that she remains in constant contact while driving from A to B. You cannot do that in a 50-year-old car. And this is where the story really starts. I willingly set up the electronics in the car so that hands free phone calls could be made,

“Man pleads guilty to stalking and controlling ex-girlfriend’s car with his computer,” read the headline on an ABC News feed. In detail, a Hobart man deliberately downloaded and set up an online application that gave him control over the stop and start function of his ex-girlfriend’s car and allowed him to track her movements, a court had heard. The 38-year-old accused pleaded guilty in the Magistrates Court in Hobart to stalking his ex-girlfriend

MANAGEMENT

last year. There is more to this concerning story, but my interest was the use of the internet. That put me right on topic for this article; to discover how the internet provided the means for such a deed. As is so often the case, things were simple and had been around for quite a while. All one really needs is a mobile phone app and the Vin number of the vehicle to be monitored. I also had just the car to try it out on and such an app was simple to find. Don’t you love the way technology invents new words for us? It turns out that the ‘infotainment’ system is the culprit which retains a plethora of data which is not data the vehicle alone generates but ResortNews | February 2021


to be picked up and reported to the builder as soon as possible, by six years past the Certificate of Classification for these to be rectified prior to the expiration of the “Structural Defect Liability Period”.

signatories of form 16’s and sub-contractor warranties.

Duty to Report

Early identification of issues/defects

Full suite of “As Cons” and building contract

Tenacity

Ideal Process As soon as practical after the first AGM of the scheme: •

Engage a professional building inspection company to undertake a full inspection of common property Issue the “Register of Defects” upon the builder, with a request for rectification within a

also anything the system can snuffle from the device that is paired with it. That device is, of course, your mobile phone because you do want to make those calls while on the road. For starters, that means it reads and retains your contact list, access names or codes, phone numbers, call logs and perhaps email addresses. We trust our cars to get us where we want to go safely, but what information does our car have on us that could be collected and then used by other systems or devices? That list is extensive and somewhat varied depending on type and model car you drive. If we start with the cars’ own computer, we find that these computers have sensors and switches wired in to detect variables such as temperature, pressure, voltage, acceleration at different angles, braking, yaw and roll of the vehicle, steering angle, transmission performance and many other signals. Then, there are your outdoor temperature sensors, your door locks, seat belts, oil ResortNews | February 2021

©Engdao - stock.adobe.com

The body corporate has a duty to report defects in a timely manner to the builder. If the builder can prove that the body corporate knew about a defect and left it for an extended period before reporting it, the Queensland Building & Construction Commission (“QBCC”) may fail to issue a “Direction to Rectify” upon the builder and leave the defect up to the body corporate to rectify at their cost.

When it comes to successfully managing a defective building work claim, three things really go in the body corporate’s favour:

reasonable time period •

Failing rectification, lodge a defective building work complaint with the QBCC

NOTE: As soon as structural defects are noticed it is vital that the body corporate acts promptly and reports to the builder for rectification.

Value of “As Constructed” documentation and the building contract In order to lodge a defective building work claim the QBCC will ask for a copy of the building

levels, radio stations you listen to, places you visit, where you shop and work, the number of times you open doors and possibly even record conversations you may have while in the car. It even measures your weight. The sensor that initiates the alarm to advise that a seatbelt is not fastened while a seat is occupied also weighs who ever sits on that seat. And by that logic, it also knows if you buckle up when driving. Tesla has also installed cameras to monitor driver behaviour. The system is designed to monitor a driver’s alertness and sound a warning if the driver is at risk of falling asleep. Guess what? Your car will now also know when you are texting or eating whilst behind the wheel. It is called telematics. All this information is collected and recorded in a manner which provides a timeline event record of all these parameters and more. Modern cars can have as many as 140 minicomputers on board generating a constant data flow of some 2000 data points which

contract, which should have been handed over [by the developer] to the body corporate at the first AGM of the newly registered scheme. Along with the building contract, should be the full suite of “As Constructed” plans, warranty certificates, form 15’s and form 16’s and operations manuals for all plant and equipment installed on site.

Insured or Not Insured Buildings up to three stories in height may be covered by QBCC home warranty insurance, however this does not mean that the QBCC can’t help you with your building over three stories high. The QBCC is there to support all consumers of construction products including bodies corporate of high-rise and commercial schemes.

Builder Bankrupt?

From this suite of documentation, the body corporate is fully armed to make successful warranty claims against the original builder or, in scenarios when the builder is bankrupt, against the individual

There is further recourse for bodies corporate determined to make a successful warranty claim in circumstances where the builder is a deregistered entity, bankrupt or has deactivated his/her QBCC License.

are extracted by the system when the car needs ‘to do something’. This all takes place on a bus system rather than what would be an impractical thousand wire cable loom if conventional (old) technology was used.

it all before passing on the vehicle to the next hirer.

The storing of the car’s historical data is obviously of interest to the manufacturer, think of VW pollution control fiasco, and assist in maintenance of our very complex vehicles. It can also be transmitted covertly to the manufacturer. Insurers also have a great interest as it allows detailed analysis of all the events that preceded that very expensive crash. Law enforcement agencies also use this treasure trove for forensic crash, and indeed crime, investigation. In the US police now have dedicated branches with experts to recover data during criminal investigations. All this should also alert us to using our mobile phones in hire cars. Our data will be added to the previous hirers information unless the hire company remembers to delete

MANAGEMENT

Finally, I am led to the question of who actually owns this data. Quite a few arguments in answer to that question exist but so far, no clear definition seems to abound. One can assume that once our friends, the human rights activists, get hold of this, things may start to move but with a huge impediment with the advent of the self-drive vehicles. We are very close to having autonomous vehicles which will not only serve the person occupying that driverless car but also for safety communicate with other cars in the vicinity; and while all that is happening the manufacturer will most likely update the cars’ software while it is mobile. And that communications highway will be the internet quite probably utilising the 5G network which we are yet to see on any large scale. So, the next time you take out your smartphone on wheels drive safely but remember, your car is watching you!

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BUILDING RELATIONSHIPS

Know your worth How much are you worth to your investors? The original subject line when I first started writing this article was ‘how much is an investor worth to your business?’. Let us be honest though, we have talked the back legs off a donkey regarding that subject (I hope that is the right saying). The thing I believe we should talk about more is the value a manager brings to an investor. The phrase ‘knowing your worth’ is so immensely powerful and one that some, including me, can struggle with not only in business but in a personal sense as well. Seeing as I am not a registered councillor or therapist, I will stick to the business side of things! During my contracted time with a client, I am lucky enough to watch them become more and more confident within

The thing I believe we should talk about more is the value a manager brings to an investor… Kelley Rigby, Managing Director, Letts Rebuild

themselves as we win back their outside investors. This got me thinking, do they not know how great they are? Within one day, a manager has the ability to go from a professional real estate agent, handyman/woman, pool man/woman, landscaper, unpaid and unregistered councillor/ relationship therapist, security guard and office administrator… That is all pretty darn impressive

if you ask me. I want to share a real-life story with you…

Let’s talk about Joe Joe is a lovely fellow that I had a conversation with the other day (said in a sarcastic tone) in relation to him having his rental with an outside real estate agent. The conversation between Joe and I was flowing nicely until I hit him with the punchline: “So Joe, how do we win over your business?” His response will no doubt make your blood boil as it did mine. “You mean that manager wants more money out of me? I already pay his wage”.

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

Over 40 years of service to the Management Rights industry, providing assistance in:

Immediately, I sat up straight and became much more assertive in my tone, explaining how the care taking role works, etc. After I had overloaded him with information and stories of how (insert swearword) amazing the manager is he proceeded to say: “Ok I’ll give it to you for five percent commission (inclusive

of GST) and no relief fee, I don’t even really see what you agents do anyway”. I thanked Joe for his time and said I would get back to him. The manager and I spoke at length about Joe, his offer, and his attitude. After weighing it all up we decided to tell Joe to stick it. The manager insisted on making that call to Joe, and good on them. Negotiating commissions and fees in business is something that will inevitably happen throughout your time in management rights but there is a big difference between negotiation and being devalued. If you are confident in your ability and value your own worth others follow suit, eventually. The moral of the story is that your value does not decrease based on someone’s inability to see your worth. Be confident in what you do. Be kind in how you act. And always be honest with your words.

Buying and Selling Ensuring Agreements Comply with the Law Agreement Negotiation with Bodies Corporate Representation to Licensing Authorities ‘Body Corporate & Community Management Act’ Advice Employee Dispute Resolution

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MANAGEMENT

Photo by sydney Rae on Unsplash

For expert advice please contact; Paul Jones John Punch Phone: 5570 9327 Fax: 5539 8745 Phone: 5570 9322 Fax: 5539 8745 paul.jones@spglawyers.com.au john.punch@spglawyers.com.au Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164 GCMC, Bundall, QLD 9726

ResortNews | February 2021


© sinenkiy.com.ua - stock.adobe.com

Lifting profits by managing channels

By Mandy Clarke, Editor

Technology moves at the speed of light, or even faster in the digital age, and that is no more apparent than in the accommodation industry. It seems only a few years ago that hotels depended on advertisements in printed glossy directories, and the direct telephone reservations that resulted. Today, guests can search for a property from anywhere in the world, using the narrowest of criteria. Managing reservations for a property with a global customer base requires technology that can safely and accurately negotiate the seemingly infinite and intricate labyrinth of the worldwide web. Without a channel manager, hotel staff can spend hours manually uploading and updating rates, inventory and availability on different OTA sites, a task that often creates errors and inconsistencies across the channels. ResortNews | February 2021

Choosing the correct channel manager is vital, and the decision is dependent on such things as hotel size, cost, and the number of different connections. Not using the right channel manager can result in double bookings, unhappy customers, lost revenue, and even more wasted time trying to fix the problem. Chris Fozard, the operations manager for the Budget Motel Chain which also owns and operates the UseROSS channel manager, explains that “basically a channel manager is a piece of software that relays inventory and availability to Online Travel Agencies (OTA) and automatically reduces or increases allocation depending on the information received.

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“They are becoming very much a necessity for anyone in the hotel business.’’ A channel manager tells the OTAs in real time what rooms are available and at what cost. Because bookings are constantly monitored across the channels, they help to avoid overbooking from different OTAs.

UseROSS offers a Direct Deposit feature, where booking deposits and payments are transferred directly to your nominated bank account.

Find out how you can save on Merchant Fees

(03) 9784 4111 useross.com.au

MANAGEMENT

This option was implemented to save you time and money, as you no longer have to enter credit card details into your POS terminal therefore reducing merchant fees.

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Natasha James, HiRUM Software Solutions general manager emphasises that a channel manager is a key investment to business growth. She says: “It is integral in today’s market to ensure that a property or vacation rental business positions themselves with the best visibility to anyone looking to book a room. A channel managers’ benefit is that it makes all your listed rates uniformed in-market, you can manage from one central location that’s distributed to 100’s of OTA’s, without the concern of rate parity. A channel manager removes the manual process of updating various individual channels with rates, availability, images, content and gives you time to focus on your business, and not in it as much, no matter the size of your business/property.” Mitchell Nunis, global marketing and brand strategist for software company RMS, says the trend in the accommodation industry is for integrated solutions that create more effectiveness and efficiency. As a property manager you basically want to have everything at your fingertips.

Our experts agree that the essentials needed from a channel management system are: reliability, flexibility, real-time connection to the major OTAs, and pricing that matches a property’s budget. The use of “mobile first technology” is also vital given the reliance on smart phones. Other things to consider when choosing a channel management system include whether it allows for live rate and availability updates, whether it can manage all booking sites (branded website, OTA, and wholesalers) from one channel manager, whether it can upload your hotel inventory for the next 365 days in advance, and how easy it is to gain an overview of how your channels are tracking and which channels deliver the most bookings and the most revenue. Every channel manager should have a dashboard so a property manager can view the bookings received in the last 30 days to track which ones are performing. The experts also agree that channel managers can be effective in overcoming issues around rate parity. Mr Fozard says channel managers should allow you to add a percentage to your rate

to cover the OTA commissions, so that you are still in line with their rate parity laws.

desk operations, housekeeping, rate and occupancy management, and payment processing.

He explains: “If, for instance, you have a lot of issues dealing with Agoda you can put their 14 per cent commission on top of the Agoda rate and then use a screen shot to show that the rates are the same across the channel – plus commission. That’s the easiest way out of the rate parity fiasco.”

Properties with less than 10 rooms that only connect to Booking. com may not prioritise the need for a channel manager or PMS. However, for any size property that is connected to more than one OTA, the use of a channel manager is recommended by the experts because it reduces the chance of overbooking.

He adds, channel managers also make it possible to advertise deals or extra incentives bonuses to encourage guests to book direct. “Booking.com has not agreed to any relaxation of rate parity but if you have extras to offer you can do that through your channel manager - that’s fully allowed,” Mr Fozard said.

Mr Nunis recommends using software that offers integrated solutions to channel management for properties of varying sizes.

“Under rate parity your rate might be $150 a night but you could advertise it at $120 as a “borders opening” promotion for four weeks. As long as the promotion has an end date, Booking.com and Expedia can’t touch you because it’s still under the rate parity rules.”

He explains software should allow for quick updates on rates, rules and availability. It also allows for customising the layout and design and refining content to influence online rankings. A rate manager and dynamic pricing module in connection with a Property Management System allows a hotel to automatically calculate rates based on predetermined occupancy levels and quickly create new rate plans with a derived rate functionality.

Mr Fozard also suggests that smaller hotels can use a channel manager without the Property Management Systems that allow larger properties to better manage reservations and perform administrative tasks, such as front-

A dynamic pricing module automatically adjusts and updates rates depending on occupancy levels, allowing an increase in yields during high demand and maximising occupancy during quiet periods. ©Flamingo Images - stock.adobe.com

Mr Nunis says: “An integrated channel manager really enhances the speed at which the operation works well and that translates

to better guest reach.”

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MANAGEMENT

ResortNews | February 2021



Want to get more from your channel manager? Ask these three questions. Achieving full occupancy at the best possible rate is a key focus for most resort operators, which is why a channel manager is a critical tool in your PMS arsenal. A channel manager is a centralised system designed to manage a range of online travel agents (OTAs) simultaneously. The majority of property management systems (PMS) offer integrations with third-party channel managers which means you can interface with an external source and extend your offering to a broader audience. However, these outsourced channel managers may have limitations that impact your business and revenue-generating potential. An inbuilt channel manager (one that is native to your PMS) is a much more reliable, robust and proven solution that also eliminates the need for a third-party integration. Let’s compare the two by asking three important questions: 1. How can I increase my reach but also save money? The key benefit of any channel manager is the ability to connect your inventory to major OTAs, such as Booking.com, Expedia and Agoda, expanding your reach and driving more bookings. One of the main downsides to using a third-party is the costly integration fees on top of paying commission. With a channel manager that is native to your PMS system, you can dramatically lower your distribution and online booking acquisition costs while still increasing your occupancy. This is a much more cost-effective option, as there are no integration fees to pay. You can also significantly reduce the chance of overselling, as updates occur in real-time, with bookings arriving directly into your PMS within seconds.

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2. Is there a more efficient way to use my channel manager? Third-party channel managers will often operate on an external system, which adds an extra layer of complexity when trying to manage OTA bookings. This is not the case when your channel manager is part of your PMS software; instead, you can efficiently distribute your inventory and regulate your rates from one, central location. You can also save time, as each booking made via an OTA automatically creates a reservation in your PMS. Another time-consuming process with a third-party channel management system is having to contact an agent or support person before you can connect to an OTA. With an inbuilt channel manager, you can self-connect to a new online travel agent, saving you time and putting you in control. Multi-properties can also greatly benefit from a native channel manager solution. Brett Salter, National Accommodation Manager at ALH Group, said

a significant advantage of an inbuilt channel manager, such as the one in RMS Cloud, is that it seamlessly connects to the world’s major booking channels and cuts the cost and inefficiency of using a third-party system. “An inbuilt channel manager simplifies distribution, doesn’t cost extra and means we don’t have managers wasting time logging in and out of a separate system to manage rates and inventory - it can all be done in the one place.” 3. Could my channel manager be more intuitive to react to changes in demand? The easy answer is yes. With a native channel manager, you can streamline your pricing strategy by combining your channel manager with dynamic revenue management tools. This enables you to manage your rates, availability and restrictions at a rate plan level, rather than an inventory or category level which limits the capability to maximise revenue. With a combined rate and

MANAGEMENT

channel manager, rates are automatically calculated based on your predetermined occupancy levels, improving yield when you’re busy and boosting occupancy during low seasons. Rate changes are then instantly updated in your affiliated OTA listings so you can quickly react to supply and demand. If you’ve ever asked one or more of the above questions, then now is a good time to consider implementing a PMS system with an internal channel manager. With RMS Cloud, you benefit from a flexible and powerful property management system as well as native channel management capabilities that synchronises seamlessly with your reservation data to provide a complete online distribution system. Find out more about how the RMS Channel Manager can help your resort maximise occupancy, reduce your costs and improve your day-to-day efficiencies: https://www.rmscloud.com/ features/channel-management. ResortNews | February 2021


Get more from your channel manager Access the world’s leading OTAs with RMS Cloud’s native channel manager, eliminating the cost of a third party integration. A less complex, more cost effective way to get connected.

rmscloud.com


TOURISM REPORT

COVID cost Cairns $8 million a day Daintree Rainforest Cape Tribulation – Photo by Manny Moreno on Unsplash

By Mandy Clarke, Editor

“That is felt right through the industry, from little restaurants and coffee bars to tour operators and the big accommodation providers.

Border closures are costing the Cairns and Great Barrier Reef region more than $8 million a day in lost revenue.

“It has definitely been tough up here but since June of last year we’ve had reasonable numbers coming through so average occupancy lately has been anything between 40 to 60 percent and that is possibly a lot better than what a lot of people would have thought.

North Queensland saw a decline in tourists from 55,000 a day to just 5000 in August and while rays of sunshine emerged over the tropical paradise during the Christmas holiday season, dark clouds are still on the horizon. Tourism Tropical North Queensland Chief Executive Officer Mark Olsen said the region’s accommodation sector experienced good numbers over Christmas and New Year but had softened in January. “Cancellations from the greater Brisbane lockdown and tropical storms have further driven down demand which was already 20 percent down in December,” Mr Olsen said. “The loss of two-thirds of our domestic market and all international markets is costing the Cairns and Great Barrier Reef region more than $8 million a day. “However, there is pent-up demand with the Brisbane to Cairns air route remaining Australia’s busiest for the

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Palm Cove North Queensland Photo by David Clode on Unsplash

fourth consecutive month according to the latest aviation statistics for November 2020.” Mr Olsen said COVID had cost the region more than $1 billion in visitor expenditure up until last August and while figures were still being tallied it could be as high as $2.2 billion for the year. Tourism generated $3.5 billion into the regional economy in the 12 months before borders closed. Fears for the tropical north come as Australia’s tourism industry is forecast to lose almost $7billion and place 320,000 jobs at risk due to domestic and international border closures.

The Tourism and Transport Forum (TTF) found that in the short period of December 24, 2020 to January 31, 2021, holiday spending was predicted to be down by $6.8 billion. Cairns management rights expert Calvin Bailey, who has spent 25 years in the business, said the impact of COVID had been felt heavily in his industry especially in the first six months of 2020. “Normally the ratio of tourists here is something like 40 percent international and 60 percent domestic but with the borders closed and no international travel it whittles right down,” Mr Bailey said.

TOURISM

“There’s been a few hiccups recently with borders closed again but the numbers have been fairly steady. “In the last five years or more the bulk of our bad weather events has tended to go south from Cairns which is not good for places like Mission Beach, Cardwell, Townsville and the Whitsundays, but we have escaped a lot of bullets in the last five years in Cairns. Hopefully when the vaccinations start that will see a big increase in tourism to our area. It should mean there won’t be quarantine requirements with New Zealand and hopefully after that we likely get tourists from Singapore where COVID seems to be under control. “Progressively our tourist numbers will improve as the rest of the world starts to get immunised.” ResortNews | February 2021


Golden history of the rise of the Sunshine Coast By Grantlee Kieza, Industry Reporter

The Sunshine Coast is one of the 10 biggest cities in Australia and it’s growing fast.

became known as Pumicestone Passage and Cook noted the unusual mountains that resembled the ‘Glass Houses’, or the furnaces used to make Glass back home in Yorkshire.

Almost 350,000 people call it home and many more are flocking to the beaches and majestic hinterland.

Almost 30 years later, another English sailor, Matthew Flinders, climbed Beerburrum, one of those strange Glass House Mountains.

The Sunshine Coast is one of the youngest cities in Australia, too, celebrating its 50th birthday in 2017, but its history is much older and richer than that.

The first European to live in the area was the 21-year-old escaped convict James Davis, who in 1829, fled the harsh Moreton Bay penal settlement.

The first inhabitants an traditional owners of the district are the Gubbi Gubbi people who hunted and fished around the waterways and travelled overland to the Blackall Range to feast on bunya nuts and perform initiation ceremonies and corroborees.

Davis was adopted by an Aboriginal group, whose leader believed the pasty Scot was his dead son resurrected as a white man. He maintained this new life for 13 years, learning different Indigenous languages and rituals so well that when he was found by a party of Europeans at Wide Bay in 1842 he had to relearn English and reacquaint himself with European clothing and customs.

On 17 May, 1770 English botanist Joseph Banks, aboard Lieutenant James Cook’s H. M. Bark Endeavour, observed what

He was brought back to Brisbane by the architect and builder Andrew Petrie and worked as a blacksmith at Kangaroo Point before opening a profitable crockery shop in George Street in 1864. He died in 1889, leaving a small fortune to the Brisbane General Hospital. Robert Bulcock, the State Member for Enoggera, purchased 110 hectares in Caloundra and Thomas Ballinger built a slab hut by the beach. His land, known as Ballinger’s Hill, was fortified during the Russian invasion scare of the 1880s and became known as Battery Hill. James Moffat, a chemist from Brisbane, built a cottage by the beach that now bears his name.

Noosa Beach – Photo by Raygar He on Unsplash

with the opening of the Great North Coast Road, later to be known as the Bruce Highway, after Henry Adam Bruce, the Queensland Minister for Public Works.

In 1888, Caloundra’s first guesthouse, Sea Glint, opened and three years later the Brisbane-Gympie rail connection was completed.

At the time the new holiday destination was called the ``Near North Coast’’ but in November 1966 Maroochydore, Noosa and Landsborough Shires all voted to adopt the name “Sunshine Coast”.

By 1934 the great tourism boom was underway around Maroochydore and Caloundra

The name was officially gazetted on July 22, 1967 and took effect from August 1.

Intrastate travel booming for Sunshine Coast – how has market innovated recent success? The Sunshine Coast was successful in developing its intrastate market in response to mitigating the extent of the disruption caused by COVID-19, according to the latest National Visitor Survey (NVS), released by Tourism Research Australia.

increase in intrastate visitors for the three months, compared to the same period in 2019. A total of 837,000 intrastate visitors travelled to the Sunshine Coast in the quarter, compared to 599,000 for the corresponding quarter in 2019.

The NVS covers the September 2020 quarter – from 1 July to 30 September – when for most of the quarter Queensland’s border was closed to its principal interstate markets NSW, Victoria and South Australia.

While COVID-19 had a severe impact on overall visitor numbers for the quarter, the Sunshine Coast’s intrastate drive-market campaigns shielded the region from a larger fall. Overall visitor numbers were down, but the Sunshine Coast recorded the lowest decrease of all Queensland regions, declining -3.7 percent to 886,000 for the quarter.

As a result, Visit Sunshine Coast launched a campaign targeting the Queensland drive market, which saw a 39.7 percent

Commenting on the figures, Visit Sunshine Coast CEO, Matt Stoeckel, said the National Visitor Survey figures

ResortNews | February 2021

highlighted the devastating impact of Covid-19 on the tourism industry, but the policy of targeting the intrastate market had insulated the region from the worst of the impact. “The second half of 2020 was dominated by uncertainty and disruptions caused by COVID-19. With over three million residents within a 300km radius of the Sunshine Coast, the region switched its strategy and focused on targeting this significant drive market to alleviate the declines from interstate and international sources. “Also supporting the intrastate strategy has been the launch of our new For Real branding. This branding was developed through research that provided insights into the

TOURISM

desire of Australian travellers to visit destinations that offer uncrowded, natural-focused attractions, and authentic characters and experiences. The NVS statistics are a great indicator to us that this new brand is right on point. “It’s encouraging to hear that many of our Sunshine Coast operators have also enjoyed a strong summer period, with some operators even reporting above-forecast results for the period. However, many operators that have been unable to pivot their businesses to cater for an intrastate market are still doing it really tough, and there is still a lot more work to be done to support these operators navigate their way through COVID-19”.

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TOURISM INTERNATIONAL

International guest losses may take four years to recover By Mandy Clarke, Editor

Global tourism suffered its worst year on record in 2020, with international arrivals dropping by 74 percent according to the latest data from the World Tourism Organization (UNWTO).

According to the latest UNWTO World Tourism Barometer, the collapse in international travel represents an estimated loss of USD $1.3 trillion in export revenues - more than 11 times the loss recorded during the 2009 global economic crisis. The crisis has put between 100 and 120 million direct tourism jobs at risk, many of them in small and medium-sized enterprises. Due to the evolving nature of the pandemic, many countries are now reintroducing stricter travel restrictions. These include mandatory testing, quarantines and in some cases a complete closure of borders, all weighing on the resumption of international travel. At the same time, the gradual rollout of a COVID-19 vaccine is expected to help restore consumer confidence, contribute to the easing travel restrictions, and slowly normalise travel during the year ahead. UNWTO Secretary-General Zurab Pololikashvili said: “While much has been made in making safe international travel a possibility, we are aware that the crisis is far from over. The harmonization, coordination and digitalization of COVID-19 travel-related risk reduction measures, including testing, tracing and vaccination certificates, are essential foundations to

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© Viktor Gladkov - stock.adobe.com

Destinations worldwide welcomed one billion fewer international arrivals in 2020 than in the previous year, due to an unprecedented fall in demand and widespread travel restrictions. This compares with the four percent decline recorded during the 2009 global economic crisis.

promote safe travel and prepare for the recovery of tourism once conditions allow.” UNWTO experts suggest a mixed outlook for 2021. Almost half of respondents to a survey envisaged better prospects for 2021 compared to last year, while 25 percent expect a similar performance and 30 percent foresee a worsening of results in 2021.

tourism to return to 2019 levels.

New Zealand and Tasmanian Hospitality Associations unite for success in 2021. Hospitality New Zealand (Hospitality NZ) has established a formal partnership with the Tasmanian Hospitality Association (THA) to work on mutually beneficial initiatives and projects.

The overall prospect of a rebound in 2021 seem to have worsened as half of respondents now expect a rebound to occur in 2022 compared to 21 percent in October 2020. When tourism does restart, the UNWTO panel foresee growing demand for open-air and nature-based tourism activities, with domestic tourism and ‘slow travel’ experiences gaining increasing interest. Looking further ahead, most experts do not to see a return to pre-pandemic levels happening before 2023. UNWTO indicates that it could take two-and-a-half to four years for international

The partnership was buoyed by the government’s announcement that direct international flights between Tasmania and New Zealand are set to resume at the end of this month for the first time in more than two decades. Several collaborative opportunities have been identified to coincide with this. The partnership follows more than three years of discussion and collaboration. Hospitality NZ CEO Julie White said the strong relationship between the organisations was crucial in navigating the COVID-19 pandemic, during which they shared learnings and

TOURISM

responses to the changes and challenges facing their industries. “We’ve been working with the THA team for a number of years and this relationship was particularly important throughout 2020 as we supported our industries to operate in the COVID environment and now foster the recovery. “New Zealand and Tasmania have many things in common despite being separated by 2,500km of sea – stunning landscapes, strong cultural heritage and a thriving tourism and hospitality sector – and we hope to build on our relationship for the benefit of both industries.” A round-table discussion between the organisations is anticipated in New Zealand this year, while a study tour has also been flagged to coincide with Hospitality NZ’s annual conference, which the THA has participated in for many years. It’s hoped THA can host Hospitality NZ in September, when Hobart will host the AHA National Awards for Excellence. ResortNews | February 2021


THE LAST RESORT

Aore Resort:

No more glorious site on Earth Images courtesy of Aore Resort

By Grantlee Kieza, Industry Reporter

the water as a drum. On my first full day in Vanuatu, I lunched with divers who had just been down exploring the wreckage of the SS President Coolidge, a 200m-long luxury ocean liner.

If there is a more glorious sight on Earth than the shimmering beach of Port Olry on Vanuatu’s largest island, Espiritu Santo… I am yet to see it.

Further on in the jungle I walked to the remains of an American B-17 bomber that crashed approaching an airfield during World War II.

I paid peanuts for the giant lobster mornay waiting for me on an oversized platter but the view from the beachside table on this tropical paradise was priceless. With the sand as white as snow, and the breeze cool and salty, my only concern amid this jawdropping beauty was trying to decide whether the gentle waves were coloured aqua or turquoise. Espiritu Santo is little more than two hours by direct flight from Brisbane, but it is a world away from the cares and snares of the western world. Not long ago, I spent five of the most relaxing days of my life at the Aore Resort (pronounced OwRee), where visitors can let the hours melt away under a gentle sun or ramp up their holiday with scuba diving, kayaking, bike

ResortNews | February 2021

riding or an adventure hike as challenging as an ironman race. The Aore Resort is situated on the private, secluded Aore Island, one of 83 islands in Vanuatu that stretch across the northern reaches of the Coral Sea. The resort is roughly on a parallel with Cairns but it is a parallel universe to big-city life in Australia. Accommodation is in comfortable beachside bungalows with newly renovated interiors and a traditional island ambience. There is a 12-metre pool at the resort but don’t expect to watch TV during your stay because sets are nowhere

to be seen. Wifi is available if you really must but I preferred the day spa and the hot stone massages. The resort restaurant offers a buffet breakfast and at night there is a veritable feast, with prices cheaper than restaurants of an equivalent standard in Australia. The Santo beef comes from contented cows who spend most of their time lolling about the coconut plantations. The lobsters and the Poulet fish are fresh from the sea every morning. There is regular entertainment including the Lewenton Water Music Ladies, who sing while waist deep in the ocean using

TOURISM

At a roadside stall proclaiming “Kwality here” and “helty locol food” I stopped to have coconut juice straight from the fruit, a young girl slicing a hole in a fresh coconut with one thwack of a heavy bush knife. The drink cost the equivalent of 20 cents. For many visitors to Aore – but certainly not faint-hearted ones - the gruelling Millennium Cave tour is a highlight. The physically challenging tour finishes with a swim in the delightfully cooling waters of the Sarakata River and a shower underneath a waterfall. A slice of paradise.

33


PEOPLE

New agents join MR Sales By Mandy Clarke, Editor

MR Sales welcomes three news agents to the team... Brigid Clarke joins with more than ten years’ experience in real estate and management rights. She specialises in new developments and has an added passion for the tourism industry.

Brigid Clarke

Brigid says she is excited by the potential she sees for the market and plans to use her expertise to encourage growth across the sector. She was introduced to the real estate industry at a young age working in her father’s real estate offices in Brisbane during school holidays. She followed her family to Kingscliff in NSW where they purchased residential and commercial management rights to a consortium of properties

in Kingscliff and found her place working alongside her father in this now premier holiday destination. After the family sold their interests in Kingscliff, Brigid invested in First Light Mooloolaba, a new development on the Sunshine Coast where she is currently appointed. Experienced in both family-run management rights and the complexities of syndicate ownership, Brigid holds a wealth of knowledge and offers dynamic insight into the current day industry for her clients. She has held a number of community positions since moving to the Sunshine Coast, including secretary and treasurer of her local Chamber of Commerce and as a representative on the Visit Sunshine Coast Sub Regional Panel. Brigid’s experience and her positioning in the Sunshine Coast community makes her the ideal choice for buyers and sellers alike in this niche and important market. New recruit, Peter Ross was previously involved in the management rights sector operating a 40-apartment complex on North Stradbroke Island. Peter and his wife Christine purchased the business in December 2013. At that time, the complex was quite tired and run-down. When the business was sold

QLD - NSW - VIC - WA

in October 2019, it had been improved by a factor of over 50 percent and realised a net profit in excess of $500,000. With the purchase, ownership and management of this business, Peter developed many ‘hands on’ skills, which now place him well to assist both potential purchasers to this exciting sector and current operators who are ready to sell their business and move on.

Mark McKay is currently operating a 46-apartment complex in Mooloolaba on the Sunshine Coast. Mark and his wife, Mandy purchased the business in February 2019. They still operate and run the management rights for this business and therefore have a very good understanding of the day-to-day running of resorts. With the purchase, ownership and management of this business, Mark has put both his building skills and his real estate skills from the past 30 years into practice. His skill set serves him well in this industry therefore he is able to assist both potential purchasers into this exciting sector and current operators who are ready to sell their business and move on.

Peter Ross

Based on his own experience with the process of buying and selling, Peter strongly believes “the most important thing people should expect from their broker, whether buying or selling a management rights business is honest and open communication”. He says: “Until we found the broker that was right for us, so many times, we were left in the dark, and had to chase information ourselves. Just a simple follow up call or email is so important to let clients know the state of play, and how things are progressing. It can be quite an emotional process with a lot at stake, and it is important to feel valued as the client in my opinion.” Peter describes himself as a good communicator, and someone who is motivated to building relationships with clients, aiming for as close as possible to a ‘perfect fit’ between willing vendors and

34

purchasers to achieve a positive outcome for all concerned.

EVENTS & APPOINTMENTS

Moving from New Zealand to Australia can have its challenges. It is here that Mark is able to assist greatly, having recent hands-on knowledge of what is required and making the transition smooth and hassle free. Mark describes himself as a good communicator who understands what purchasing a business entails and someone who is motivated to building relationships with his clients. A positive outcome for all concerned makes what was a dream become a reality.

Mark McKay

ResortNews | February 2021


Visit Sunshine Coast welcomes new CEO, Matt Stoeckel Matt started in the position last month after five years as CEO of Fiji’s national tourism office, Tourism Fiji. He said: “What attracted me to the role with Visit Sunshine Coast is that it is a destination with huge potential. “With the newly upgraded airport, plans for new hotels and attractions, and its well-earned reputation for authentic nature-based experiences there are massive opportunities for the Sunshine Coast to be a pace-setter in Australian tourism.” Mr Stoeckel said VSC’s immediate focus this year would be to continue to provide support for the region’s tourism industry as we navigate through COVID-19. He said: “As we have seen last month there is still so much uncertainty on what lies ahead for 2021, and as an industry we need to continue to work together, be flexible and adapt to these changes.”.

Talking about the launch of VSC’s new brand ‘For real’ he says: “It could not have come at a better time, as it both differentiated the region in the marketplace and highlighted the Sunshine Coast’s natural attractions. “Importantly we know from research that this is increasingly what travellers are seeking. Therefore, a focus for this year will be on continuing to activate this new brand through showcasing our incredible depth and breadth of experiences and our stunning natural landscapes that are so highly sought after by our target markets. “We will also continue to be flexible in our marketing approach, making it a priority to target holiday-makers who are able to visit the region and expanding to new markets as they become accessible.” He added: “Above all I look forward to working closely with VSC members, tourism associations, as well as our Council, State and Federal partners, to ensure that we can maximise the benefits of the tourism industry for the Sunshine Coast community.”

Visit Sunshine Coast CEO Matt Stoeckel

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ResortNews | February 2021

EVENTS & APPOINTMENTS

35


Mantra Traralgon

floor café and bar called Hush Lounge, meeting and conference facilities with modern audiovisual equipment to cater to as many as 30 delegates, high-speed internet connection and onsite car parking.

Sydney’s Historic City Tattersalls Club agrees to mixed-use tower development The expansion of IHG’s Hotel Indigo brand in Australia continues with the signing of a new agreement with City Tattersalls Club (CTC) in Sydney. Crown Towers Sydney – Photo: George Apostolidis

Australia’s newest luxury hotel, Crown Towers Sydney, is open after four years of construction.

deliver that and so much more. We have amazing bars and restaurants that will make this an incredible destination for Sydney. We are excited to open the doors and let Sydney experience it.”

Just before New Year, Sydneysiders finally got to experience the eagerly awaited hotel as well as its accompanying worldclass dining precinct.

First new hotel in a decade for Gippsland Valley

From December 28, 2020 select Crown Sydney venues were revealed to the public for the first time. The highly anticipated hotel Crown Towers and restaurant line-up openings included a’Mare, Woodcut, Nobu and Yoshii’s Omakase. Crown Sydney CEO Peter Crinis had a lot to say, claiming the new additions will popularise Barangaroo’s already thriving food scene as well as provide Sydney with a world-class hotel to compete with other major global hubs. “Sydney is one of the world’s great cities, and it deserves a great hotel. Crown Towers will

36

Accor and LA Hotel Group have opened the first new-build hotel in more than 10 years in the heart of Latrobe Valley’s largest city. The 50-room Mantra Traralgon is set to become a destination of choice for business travellers and leisure guests looking for convenient, contemporary accommodation in Victoria’s spectacular Gippsland region.

Scheduled to open in 2025, Hotel Indigo Sydney Centre will sit atop the iconic Club’s premises in a newly renovated, 49-story mixed-use tower that includes new restaurants, event space, an exclusive City based business lounge, retail, health and wellbeing facilities, along with a circa 110-room hotel and 246 residential apartments. Marcelo Veloz, CEO at City Tattersalls, commented: “When we made the decision to open a hotel as part of our exciting new

development, we knew it would not only need to be a brand that would do justice to the history of the City Tattersalls Club legacy, but it would also need the power of a global system behind it as travel ramps up again in 2021. After months of assessing hotel brands, we resolved that Hotel Indigo was the perfect brand for our club and the CBD and we look forward to developing a successful partnership with IHG in the years ahead.” CTC’s rich and vibrant 125-year history makes the perfect inspiration for Hotel Indigo’s famous neighbourhood story concept, which will embrace the tale of a club that was founded by 25 bookmakers and is now one of the most sophisticated and oldest community clubs in Sydney, boasting more than 20,000 members. That history will influence every element in the hotel offering, including design, food and beverage and service offerings across the hotel’s neighbourhood café, bar, and gym. Guests at the hotel will also benefit from access to the

The $18 million development, which comprises five levels and 50 well-appointed guestrooms and suites, is located directly opposite the city’s major retail centre and within an entertainment complex that houses a cinema, ten-pin bowling and bistro. Onsite amenities at Mantra Traralgon include a ground DEVELOPMENTS

Hotel Indigo – artist’s impression only subjects to planning approval and design development.

ResortNews | February 2021


facilities within the broader development, including meeting and event space and the exclusive lounge.

 Structuring  Income Verification  Accounting/Taxation  Superannuation  Audit

Abhijay Sandilya, IHG’s Vice President, Development – Australasia, Japan & Pacific, said: “There’s something wonderful that happens when great brands come together, so it’s an honour for IHG to partner with one of Sydney’s oldest and most beloved business and sporting clubs to bring another amazing Hotel Indigo to Australasia. “It’s clear that our boutique neighbourhood brand has truly resonated with guests and owners, and I am looking forward to seeing how City Tattersalls Club’s rich history plays into the neighbourhood story to create a spectacular hotel. With a perfect location in the very heart of Sydney and the development’s fantastic facilities, Hotel Indigo Sydney Centre will undoubtedly become a favourite destination for business and leisure guests alike.” Hotel Indigo Sydney Centre will enjoy a prime location within the Pitt Street frontage, just a stone’s throw away from Pitt Street Mall, the pedestrianised heart of Sydney CBD, and the City’s premier shopping, food, and entertainment precincts.

Developer Harry Triguboff takes Meriton group to Sydney locale for a cool $68.5 million The property veteran, Australia’s largest developer of apartments, is confident in a speedy market recovery as he jumped at the opportunity to secure what he deems a well-connected site: “It’s taken me somewhat by surprise – we have sold over 100 apartments already this year, and momentum seems to be

Hotel Indigo – artist’s impression only subjects to planning approval and design development.

getting stronger with all buyer types active, so this acquisition makes perfect sense.”

We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry. Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

He said he remains eager to buy land and keep restocking the apartment cupboard. The Carlingford site is at 263-273 and 277-281 Pennant Hills Road, 18kmn West of the Sydney CBD. The site will yield approximately 700 apartments, and the hotelier said that Meriton will redesign it to accommodate a fresh apartment mix aligning with current market expectations that will offer the local community, and of course its future residents, a lot more amenity. “It excites me that this particular site has so much to offer and that upon completion it will deliver a new and fresh hub for this prestigious suburb. mixeduse developments have been very successful for us recently, and we plan to continue the trend by incorporating a supermarket, restaurants, cafés, childcare centres and more into the new plans.”

Harry Triguboff

ResortNews | February 2021

Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business?

PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

Over 40 years of service to the Management Rights industry, providing assistance in: Buying and Selling Ensuring Agreements Comply with the Law Agreement Negotiation with Bodies Corporate Representation to Licensing Authorities ‘Body Corporate & Community Management Act’ Advice Employee Dispute Resolution For expert advice please contact; Paul Jones John Punch Phone: 5570 9327 Fax: 5539 8745 Phone: 5570 9322 Fax: 5539 8745 paul.jones@spglawyers.com.au john.punch@spglawyers.com.au Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164 GCMC, Bundall, QLD 9726

DEVELOPMENTS

37


LOCAL SPECIALIST OF MANAGEMENT RIGHTS & RESORTS SALES NEXT 团队懂得客户对我们的期望,一个具备丰富本地知识和经验,并且诚实而可靠地致力于取得客户利益 的生意专家。凭借着团队10多年丰富行业经验,我们向您承诺我们会努力达到您的期望。无论您准备买, 卖生意,我们都可以帮助您实现您的目标。 The team at NEXT knows that our clients want to deal with consultants that have local knowledge, expertise, honesty, integrity, and are committed to achieving the best possible result for them. With many years of combined industry knowledge, you can be assured that our focus will exceed your expectations.

SOUTH BRISBANE

GREAT VALUE AND HUGE UPSIDE POTENTIAL

WEST END

• Prime location, walk to South Bank Parkland & CBD, close to all the necessary amenities, Permanent & short term mix letting pool. • Just topped up in July 2020, 24 years left on agreements • Large 2 beds, 2 baths, 2 carparks manager residence • Brisbane State High catchment, but no requirement on residing onsite

• • • • •

NETT: $295,386 (Pre-Covid19)

NETT: $128,656

TOTAL: $1,700,000

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

RICHLANDS

• • • • •

LARGE INCOME & EXTRA RENTAL INCOME $19,760!

Well-presented townhouses complex Great remuneration $130K with CPI increase Long agreements and very supportive BC committee No residing onsite requirement, no office hours, no gate Two large three beds manager residence, one in rental

NETT: $272,345

TOTAL: $2,245,000

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

FULL VALUATION DONE!

Boutique building in Central West End, close to everything Great remuneration $85K with CPI adjustment annually Verification and valuation were done, safe deal Low caretaker work, easy for one person Large manager residence, no office hours

TOTAL: $1,290,000 (At Valuation)

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

ASCOT

• • • • •

TIME TO RETIRE - OWNER SAYS SELL!

Established modern, inner city permanent complex Handy location, close to shops, transport and M1 Only 35 units with good BC salary of $59,383 Exclusive detached office, no set office hours 2 beds/2 baths/2 carparks manager unit with large yard

NETT: $110,845

TOTAL: $950,000

David Janett, 0404 204 672, davidjanett@nextrealty.com.au

NEXT 不仅专业销售管理权和酒店生意,也向客人提供专业咨询,如管理权市场和生意分析,生意合作合伙计划以及代 班经理服务。如您想了解更多的生意机会和市场发展,欢迎致电我们的专业团队。 If you are considering buying or selling, please contact NEXT, we work harder and more professionally to serve our clients for their best interest and trust!

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PO Box 288, Cleveland, QLD 4163


MANAGEMENT RIGHTS RESORTS

ROBINA STUDENT ACCOMMODATION - $500K INCOME

ROBINA PREMIUM PERMANENT

■ Unbeatable location! Close to Bond Uni & Robina Town Centre ■ 22 years remaining on Agreements. ■ Student / Permanent accommodation ■ Manager’s accom - 3 Bedroom, 2 Bathroom, 2 Car, plus office

■ Impressive, gated resort style complex. 66 quality townhouses ■ Desirable Accommodation Module. Remuneration $104,000 ■ Spacious office on title. No set hours. Excellent storage ■ Superior 4 bed, 240sqm residence, double car, courtyard, pet ok

NETT $500,000 PRICE $3,845,000

NETT $201,000 PRICE $1,631,000

Bobo Qi 0438 027 771 bobo@propertybridge.com.au

Rhonda Perkins 0418 767 115 rhonda@propertybridge.com.au

WELLINGTON POINT EXCELLENT LOCATION – SOLID BUSINESS

LABRADOR EASY TO RUN PERMANENT

■ Popular Bayside complex with Strong Rental Demand ■ Close to Waterfront, Shops, Cafes and Schools ■ Spacious Freestanding Home. 3-4 Bed, 2.5 Bath, double garage ■ Great Living / Working Environment – In Accom Module

■ Business easily run by one person. No set office hours ■ 400 meters to beaches. Close to Harbour Town ■ 19 years remaining on Caretaking Agreement ■ Body Corporate Salary of $57,345 (ex-GST)

NETT $115,000 PRICE $1,067,000

NETT $77,000 PRICE $740,000

Jim Lowe 0403 418 115 jim@propertybridge.com.au

Jenny Zheng 0413 922 580 jenny@propertybridge.com.au

propertybridge.com.au | 1800 888 518


PELICAN WATERS RESORT | SUNSHINE COAST

Sales Report The trusted source for buying Management Rights, Motels and Caravan Parks from all the leading brokers.

MANAGEMENT RIGHTS Gold Coast

Tanya Braund, ResortBrokers’ Sunshine Coast specialists Chenoa Daniel and Glenn Millar, Travis Switzer, Russell Leary, Liza and Ash Perks.

Happy campers all round – the management rights to the Pelican Waters Resort (formerly a Sebel) was sold through ResortBrokers to Noosa legend Russell Leary. Russell will team up with Travis Switzer and Tanya Braund on the management side, while Ash and Liza Perks will take on the F&B side of the business.

Pacific Grande

Dianne Bennett

Surfers Paradise

MRS

Grande Central

Bill Vivlios

Labrador

MRS

Main Beach Tower

VA Delta P/L

Main Beach

Somerset Heights & Wynd Villas

Matthew & Abigail Middleton

Mudgeeraba

Zest Apartments

Yuhan Hu

Brisbane

RB

Heritage City Villas

Wayne & Vernita Pennington

Ipswich

RB

RB TMR

Brisbane

Sunshine Coast / Wide Bay / Fraser Coast Tingirana Noosa

Tingirana Management P/L

Noosa Heads

RB

Pandanus Court

Undisclosed Buyer

Kings Beach

RB

Sebel Pelican Waters

Russell Leary

Pelican Waters

RB

Sebel Pelican Waters Food & Bev

Perks Hospitality P/L

Pelican Waters

RB

Whitfield Waters

Haven Waters Management P/L

Cairns

RS

Terraces on Martyn

L&L Property Management P/L

Cairns

RS

Panama on Spence

Gary & Karen Calaby

Cairns

CBMR

Whitehaven Apartments

Antonio Curulli

Yorkeys Knob

CBMR

Drew Mitchell

Medowie

RB

Jim Gurpinar

Elsternwick

RB

PANAMA ON SPENCE | TROPICAL NORTH QUEENSLAND

North Queensland

New South Wales Boathouse Resort Tea Gardens

Victoria Element

MOTELS & OTHER Queensland L to R Alex Barker-Ré and Gary & Karen Calaby

Alex Barker-Ré of Calvin Bailey Management Rights congratulates Gary and Karen on the successful purchase of Panama on Spence located in the Cairns CBD. New to the industry, but well equipped with life’s experiences and the so essential business skills, Gary and Karen are looking forward to the lifestyle change of managing this lovely Cairns property in Tropical North Queensland. Whilst the industry is in unprecedented times, long term confidence remains in the overall success and strength of the indefatigable management rights businesses model, as proven in the past.

40

Gateway Motor Inn

Y. Ward

Childers

TB

Mareeba Motor Inn

Lisa & Lance Fegan

Mareeba

RB

Capri Motel

P. Benipal

Balranald

TB

Providence Holiday Park

Providence Trust

Providence Portal

RB

Hunter Gateway Moel

Tarhf 3 P/L

Rutherford

RB

New South Wales

Note: Agent/Broker involved in the sale is listed last. Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - ResortBrokers; RS - Resort Sales; TO Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

PROPERTY

ResortNews | February 2021


MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND Consider the advantages - better multipliers, better yields & better choices

COVID & INFLATION PROOF BUSINESS INVESTMENTS CAIRNS – MODERN MIXED LETTING

Rare opportunity, mixed letting and a quality modern property in a high demand rental area.

Good mix of quality 2 and 3 bedroom apartments.

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (2 brm):

Ongoing growth to convert from long to short term.

Total Price:

CAIRNS BEACHES – TOP FOUR STAR

95/33 25/24 Years $140,593 $407,000 $380,000

$2,225,000

Great mixed letting property and on the beach.

All units are 1 bedroom and all similarly furnished. Flexible letting, currently 39 perm and 17 short term.

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (1 brm):

Close to Airport and first resort on the northern beaches.

Total Price:

74/56 25/21 Years $155,077 $291,000 $270,000

$1,435,000

CONTACT CALVIN - 0414 889 593

CONTACT ALEX - 0414 835 128

TOWNSVILLE – LUXURY HIGHRISE

TRINITY BEACH – STARTER WITH OPPORTUNITY

Permanent letting residential highrise

All luxury apartments have stunning views

Good mix of quality two and three bedroom apartments

Great growth potential

Expansion of outside pool

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (2 brm): Total Price:

73/40 25/21 Years $135,890 $254,000 $530,000

$1,450,000

Urgent sale. Motivated vendors and priced accordingly.

Mixed letting. Fully furnished 1 bedroom & studio apartments.

Large 3 bedroom manager’s apt with separate reception on title. Room for growth with short & long term letting approved.

CONTACT CALVIN - 0414 889 593

Contact: Mobile: Email:

Calvin Bailey LREA 0414 889 593 calvin@cbmr.com.au

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (3 brm): Total Price:

CONTACT ALEX - 0414 835 128

Postal Address: PO Box 266 Palm Cove, QLD, 4879

Contact: Mobile: Email:

Alex Barker-Re LREA 0414 835 128 alex@cbmr.com.au

Australian Resident Accommodation Managers’ Association Member

www.calvinbaileymanagementrights.com.au All information/figures are supplied by the seller and are subject to check by intending purchasers

40/24 25/23 Years $48,814 $128,193 $295,000

$599,000


Resort News Agent Profile:

Introducing Brigid Clarke – MR Sales With over ten years’ experience in real estate and management rights, Brigid Clarke joins our team with a genuine enthusiasm for the industry.

industry for her clients. Brigid specialises in new developments and has an added passion for the tourism industry. Brigid has held a number of community positions since moving to the Sunshine Coast, including Secretary and Treasurer of her local

Brigid is excited by the potential she sees for the market and plans to use her expertise to encourage growth across the sector. Brigid was introduced to the real estate industry at a young age working in her father’s real estate offices in Brisbane, QLD during school holidays. Brigid followed her family to Kingscliff, NSW where they purchased residential and commercial management rights to a consortium of properties in Kingscliff and found her place working alongside her father in this now premier holiday destination. After the family sold their

Chamber of Commerce and as a Representative on the Visit Sunshine Coast Sub Regional Panel. Brigid Clarke

interests in Kingscliff, Brigid invested in First Light Mooloolaba, a new development on the Sunshine Coast where she is currently appointed.

Brigid’s experience of new developments and her positioning in the Sunshine Coast community makes her the ideal choice for buyers and sellers alike in this niche

Experienced in both family run management rights and the complexities of syndicate ownership, Brigid holds a wealth of knowledge and offers dynamic insight into the current day

and important market. MR Sales is firmly established in industry, possessing the ability to liase with industry professionals and offer both vendors and purchasers the opportunity to deal one on one with brokers who have a full time commitment the management rights industry. Each member of the team has their own style and experience. From the largest holiday highrise to the smallest permanent townhouse, MR Sales offer that outstanding point of difference. The team at MR Sales welcome Brigid and wish her every success.

Name: Mobile: Agency: Servicing: Web: Email:

Brigid Clarke 0409 816 635 MR Sales Sunshine Coast www.mrsales.com.au brigid@mrsales.com.au

LOOKING FOR A MANAGEMENT RIGHTS? Over 300 Listings to choose from...

From all the leading brokers The fastest growing accommodation listings website

visit accomproperties.com.au 42

PROPERTY

ResortNews | February 2021


EXCLUSIVE AGENCY OPPORTUNITIES EXCLUSIVE AGENCY

ID 8744 MIXED LETTING - CABARITA BEACH • Mix of permanent and holiday • No set hours in agreement • Low Maintanence

EXCLUSIVE AGENCY

ID 7914 PERMANENT - BIGGERA WATERS

• Opportunity to grow the business • Voted Australia’s No.1 Beach • Family sized residence

• 21 apartment in letting pool • 3 bed residence, stunning view • No Office, no office hours • Pet permit subject to BC approval • Opposite GC Broadwater • Excellent committee and BC NET PROFIT: $107,000

ASKING PRICE: $840,000

NET PROFIT: $187,727

ASKING PRICE: $1,398,000

EXCLUSIVE BROKER:

Tony Johnson - 0433 335 679

EXCLUSIVE BROKER:

Phil Trimble - 0418 478 966

EXCLUSIVE BROKER:

Warren Oliver - 0416 216 625

EXCLUSIVE BROKER:

Antonio Curulli - 0488 030 853

NET PROFIT: $180,000

ASKING PRICE: $1,250,000

• 14 storey highrise • 45 apartments with 14 in letting pool • Just 50 metres to the beach

NET PROFIT: $180,000

• Well run building • 2 bed manager’s residence • Lovely gardens, pool & BBQ area

ID 7843 MAIN BEACH MIXED LETTING

• Motivated vendors • Consistent performer • Strong tariff rates

ASKING PRICE: $1,250,000

• 21 years remaining of agreement • Generous 3 bed manager’s residence • Supportive committee and owners

ID 8595 ABSOLUTE BEACHFRONT - YORKEYS KNOB EXCLUSIVE AGENCY

MR Sales have an extensive range of listings Australia wide. Head Office: 170 Scarborough Street, Southport QLD 4215 Ph: 1300 928 556 | Fax: 1300 927 884 | Email: info@mrsales.com.au

www.mrsales.com.au

EXCLUSIVE AGENCY


Your Management Rights Financing Experts Management and Letting Rights Quarterly Pulse • January 21 • Twelfth Series

Market Snapshot - January 2021

Data provided by The On-Site Manager website.

STOCK LEVELS…Total number of Businesses on the market has fallen 30% YTD. January 2018

May 2018

August 2018

January 2019

May 2019

September 2019

January 2020

June 2020

October 2020

January 2021

$835m $932m $1,040m $969m $914m $1,010m $985m $863m $717m $646m 604 Properties 677 Properties 728 Properties 697 Properties 697 Properties 739 Properties 716 Properties 641 Properties 518 Properties 500 Properties on the market on the market on the market on the market on the market on the market on the market on the market on the market on the market          

Average stock levels for Holiday and Permanent listings have lost another 23% per sector from last quarter. January 2018

May 2018

August 2018

January 2019

May 2019

September 2019

January 2020

June 2020

October 2020

January 2021

Holiday 328  Permanent 250 

Holiday 346  Permanent 307 

Holiday 355  Permanent 338 

Holiday 358  Permanent 309 

Holiday 330  Permanent 336 

Holiday 343  Permanent 336 

Holiday 335  Permanent 328 

Holiday 283  Permanent 311 

Holiday 239  Permanent 245 

Holiday 219  Permanent 238 

4.46x 

4.35x 

Multipliers have had a slight rise. BUSINESS MULTIPLIERS (Avg) OVER $1m Purchase Price 5x 

4.9x 

4.4x 

4.3x 

4.2x 

4.1x 

4.3x 

4.25x 

The listing period for stock on the market has slipped further to half the comparative period 2020. DAYS LISTED January 2018

DAYS LISTED May 2018

DAYS LISTED August 2018

DAYS LISTED January 2019

DAYS LISTED May 2019

DAYS LISTED September 2019

DAYS LISTED January 2020

DAYS LISTED June 2020

DAYS LISTED October 2020

DAYS LISTED January 2021

Has reduced by 4 days to 76 days 

Has increased by 10 days to 86 days 

Has decreased by 16 days to 71 days* 

71 Days 

72 Days 

74 Days 

105 Days 

65 Days

58 Days 

57 Days 

Market Movers This is the second COVID impacted set of data that clearly shows a considerable reduction in total stock due to COVID. This is a record low. Permanent stock on the market has represented the largest portion of this, losing 23% of listings. The period for holiday listings has lost 18 days on average, indicating a focus on buyers on this part of the market. The Brisbane and Sunshine Coast markets appear to be continuing their decline. However, the Gold Coast market held steady with stock levels remaining roughly the same or slightly increased. *Remained 79 days for Holiday and Permanent

P E

1300 886 103

info@finexia.com.au

finexia.com.au company/finexia-securities


Management and Letting Rights Quarterly Pulse • January 21 • Twelfth Series

Management Rights for Sale - Market Analysis - January 21 Letting Pool Coverage – proportion of the total units to those within the Pool. Agreement Coverage – refers to % of total agreement term available upon purchase. Total stock

Total stock

Days listed

Average price

Multipliers

Gross return %

Letting pool coverage

Agreement coverage

Resort / Holiday

$331,524,483

219

58

$1,513,810

4.19

54%

59%

82%

Permanent

$270,766,222

238

53

$1,137,673

4.55

52%

48%

83%

Corporate

$12,186,000

9

65

$1,354,000

4.38

53%

60%

87%

Off The Plan

$15,845,900

14

58

$1,131,850

N/A

N/A

50%

95%

Caretaking

$9,284,500

14

72

$663,179

3.79

58%

41%

70%

Retirement

$6,559,000

6

94

$1,093,167

3.17

46%

73%

71%

Grand Total or Average

$646,166,105

500

57

$1,292,332

4.35

53%

53%

82%

‘On the Market Analysis’ - Market Pulse

Total properties on the market has hit a new record low.

1300 886 103

600

641 604

550 500

500

Number on the Market

NO. OF BUILDINGS ON THE MARKET BY TYPE (Holiday & Permanent) 380

346

340 320 300

358

355

360

338

328

240

335

336

330

307

328

311

309

280 260

343

336

283

250

238

220

219

info@finexia.com.au

Resort/Holiday

finexia.com.au company/finexia-securities

Oct 20

Dec 20

Aug 20

Apr 20

Permanent

Jun 20

Feb 20

Oct 19

200 Dec 19

$158m in Properties for Sale ($187m in Oct20) 113 Properties for Sale (137 in Oct20) 28 Permanent (26 in Oct20) 76 Holiday (102 in Oct20) 60 Days on Average Listed (80 in Oct20) 4.45 Avg Multiplier (4.37 in Oct20)

650

Aug 19

Brisbane

$213m in Properties for Sale ($211m in Oct20) 168 Properties for Sale (155 in Oct20) 89 Permanent (66 in Oct20) 72 Holiday (87 in Oct20) 53 Days on Average Listed (104 Days in Oct20) 4.36 Avg Multiplier (4.41 in Oct20)

Sunshine Coast

$116m in Properties for Sale ($175m in Oct20) 101 Properties for Sale (146 in Oct20) 80 Permanent (118 in Oct20) 7 Corporate (9 in Oct20) 3 Holiday (10 holiday in Oct20) 71 Days on Average Listed (104 Days in Oct20) 4.61 Avg Multiplier (4.1 in Oct20)

Gold Coast

Standard Agreements multipliers have risen from an average 3.71x to 4.01x Accommodation Agreements have fallen slightly again this quarter from an average of 4.42x to 4.40x.

716

697

697

677

Apr 19

$1.29m

Jun 19

4.40x

739

700

Feb 19

Accommodation Agreements

728

Oct 18

$1.26m

Dec 18

4.01x

750

Jun 18

Standard Agreements

NUMBER ON THE MARKET

Aug 18

Avg Purchase Price

Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sept 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sept 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sept 20 Oct 20 Nov 20 Dec 20 Jan 21

BUSINESS MULTIPLIERS (avg)

Apr 18

Purchase Price

Feb 18

Comparison by Agreement Type - January 21

P E

Historical Comparison of the Market


New Managers:

Regal Port Douglas one year on...

By Mandy Clarke, Editor

“We signed the contract in November 2019 and took control on February 12, 2020.”

James and Kim Swindles made the move into the resort management sector just one year ago but less than six weeks later, the world was turned upside down. The couple took over the management rights at Regal Port Douglas Resort Apartments in February 2020, but their dream soon took a nightmarish turn. In early March, with the coronavirus pandemic taking hold in Australia, Prime Minister Scott Morrison announced nationwide restrictions, including stringent rules for commercial accommodation operators.

46

On March 12, the Federal Government announced the first of the social distancing restrictions and the accommodation sector was all but shut down overnight. “Our timing was unfortunate,” Kim said, showing a flair for understatement.

James and Kim Swindles

“This is our first venture into the accommodation industry, and we had approximately six weeks of trade before accommodation was shut down,” Kim said.

the property management so there’s been a bit of an upside.” The couple arrived in Port Douglas after two decades on the Sunshine Coast where they had owned a butcher shop at Noosa and Kim had worked for a physiotherapist teaching Pilates.

Occupancy rates plummeted but the couple remained optimistic and still today prefer to focus on the positives.

“We had a business in Noosa Heads and many of our regular customers were in management rights,” Kim said. “It just sounded like a wonderful lifestyle. No one ever said anything negative about it.”

“Financially, it has been a disaster but, in some ways, it’s been a bit of a blessing,” Kim said. “It’s given us the time to really look at the property and get used to

The couple spent two years researching the market, from 10room motels to 40+ room resorts in New South Wales through to the mid-coast of Queensland.

PROFILES

ResortNews | February 2021


Kim was initially unwilling to move further north than that, but they did explore a couple of properties in Port Douglas and they “loved” Regal. Unfortunately, when they were ready to make the move, Regal was under contract. The couple then settled on a resort in Airlie Beach and were about to put pen to paper when the agent called to tell them the sale on Regal had fallen through. “I was at work when James called and broke the news and asked which destination was preferred,” Kim said. The answer was an easy one and they are “very happy” with the move, although they admit the transition into the resort management sector has required a major rethink. “It is completely different industry to what we’ve experienced,” Kim said. “There is just so much to learn. How the online travel agencies (OTAs) work, dealing with travel agents, contracts … it’s all part of the learning curve.”

decade at Regal, were generous with their time and knowledge.

Kim said they are thankful their predecessors, who spent a

“I don’t know that everyone gets that opportunity. I’ve heard

“We were very fortunate that the previous managers were generous with their time, training us – accommodation newbies, from scratch,” she said.

stories of other managers who have been in the same sort of situation where they are fresh to the industry and they don’t get that support.” While they have been busy learning the intricacies of the industry, Kim and James used the time since their arrival to revitalise their 46-apartment

holiday complex. Built in circa 2000, Regal is situated in the heart of Port Douglas, which serves as the gateway to the World Heritage wonders of tropical North Queensland, within easy reach of the Great Barrier Reef and the rainforests at Daintree and Cape Tribulation.

We are pleased to be advisors to James & Kim regarding their business and to assist in achieving their aims.

We are delighted to have James and Kim as valued clients. Best wishes from All The Team.

ResortNews | February 2021

PROFILES

47


The three-storey resort is steps away from the town’s famed dining and shopping precinct and just a short walk to the iconic 4 Mile Beach. It is well appointed and “had been immaculately kept” by the previous managers but James and Kim, who are very much hands on and share the administration duties, have sought to make improvements. They have revitalised the property’s gardens to provide guests with an unmistakable tropical experience and a major renovation of the water feature which dominates the foyer is planned. “The foyer water feature is a bit tired and will enjoy a facelift in February,” Kim said. “Unfortunately, we couldn’t get it done when we had no guests. We had to wait for approval … and then once I got that, my tiler wasn’t available. But it will be worth the wait.” And it is all a part of providing the best possible experience for their guests. “It gives us satisfaction to see people enjoying the product

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Airbnb’s cial Re port: distingu impact: Regula ish betw tio een shar n needs to old com ing and plain mercial letting

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Bl Wharf Bo ue C Coolanga tta utique Ap artmen ts

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Contact our profile coordinator Gavin Bill on 07 5440 5322 or service@resortpublishing.com.au to book your profile 48

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ResortNews | February 2021


were beginning to worry that we had accepted too many back-to-back bookings … “Sydney’s Northern Beaches COVID outbreak changed everything. Another learning curve as bookings were cancelled and then quickly refilled with fresh bookings only this time around, we gave ourselves and our housekeeping staff a little breathing space. “… Enter Cyclone Kimi and it appeared that our baptism of fire into the accommodation industry would continue to be a rough ride. We had not experienced a cyclone before and we had to swing into action very quickly, thankfully Kimi was a fizzer and we’re now prepared for the very real prospect of increased storm activity over the coming months.

and service that we provide,” Kim said. “In that way it’s prett y much the same as our previous roles – all customer relations – a you need to like people to

want to take it on. We love it.” Highlighting the sector highs and lows, Kim provided us with an update on progress over the last month or so:

“Christmas and the New Year period gave us a taste of what we can expect in high season. In hindsight, our bookings were a little tight and we

Talk to someone who understands your business.

YOUR PARTNERS IN SUCCESS BUYERS / SELLERS / DEVELOPERS SPECIALISTS IN MANAGEMENT RIGHTS IN NORTH QUEENSLAND

PROUD TO BE ASSOCIATED WITH JAMES & KIM AT REGAL PORT DOUGLAS AND BROKERING THE PURCHASE

Sunshine Coast & Gold Coast

Steve Austin

Management Rights Specialist

0408 776 067

Brisbane

Amanda Norling

Management Rights Specialist

“It was such a pleasure to see the resort full of happy, relaxed guests over the Christmas period and we can’t wait to see the high season as we welcome Australians (and maybe New Zealanders) back to our beautiful tropical North Queensland Resort.”

0459 800 461

North Queensland

Richard Smith

Management Rights Specialist

0407 632 612

REGAL PORT DOUGLAS

Contact us today to find out how we may assist you.

Calvin Bailey LREA 0414 889 593 calvin@cbmr.com.au Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No. 229882 (“Suncorp Bank”) 22527 22527 25/01/19 A

ResortNews | February 2021

PROFILES

Alex Barker-Re LREA 0414 835 128 alex@cbmr.com.au

www.calvinbaileymanagementrights.com.au

49


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52

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