A smarter holiday investment? Why boutique hotels now deliver

Escaping to a coastal hideaway is a common daydream for Australians, but some buyers are taking that fantasy a step further.

Instead of snapping up a holiday home, a growing number of property hunters are turning their attention to motels and boutique hotels.

But it's not just the romantic notion of checking in guests and arranging plump white pillows.

According to CBRE agent Hayley Manvell, there's a very practical upside.

Why invest

"Commercial property, in general, usually makes superior returns to residential, offering a combination of capital growth and a strong return on investment," she said.

And it's not just about the numbers. Since COVID, Ms Manvell said interest in motels and small hotels has surged - not in terms of supply, but demand.

"There's certainly been an influx of interest in motels and hotels," she said.

<img src="https://cue.wanews.com.au/webservice/thumbnail/article/20740169" id="_c683d020-2b62-4a81-9133-ef476c54a9f6" alt="Not Supplied" caption=""There's been a real trend of taking older motels and refurbishing them," said CBRE's Hayley Manvell." credit="View">

"I'd say that's largely driven by the fact that development costs have gone up so substantially since the pandemic, so replacement costs have become very high that it's making existing properties more valuable."

Ms Manvell also said with limited new stock coming on the market, performance is up too. In other words: the supply-demand equation is working in the owners' favour.

Buyers are also embracing the charm of the old-school motel.

"There's been a real trend of taking older motels and refurbishing them," Ms Manvell said, noting that upgraded rooms can command "substantially higher" rates.

Add in Australia's ongoing love affair with staycations and drive-to destinations (which was only strengthened thanks to the pandemic) and you've got a recipe for an investment that's part lifestyle upgrade, part business venture, and much more exciting than another set of standard house keys.

Boutique motel charmer

Ms Manvell is the listing agent on a renovated charmer in the popular Northern Rivers town of Brunswick Heads, The Brunswick.

It's motel on the outside, boutique hotel on the inside, and can be as hands-off or hands-on as you like.

"It's owned by a couple that live overseas and have done so for years. So it's a relatively passive investment in the fact that someone could come in and have this boutique resort that's already had its refurbishment and has stabilised and is trading exceptionally well," she said.

The adults-only boutique stay opened in 2020 with 18 coastal-style suites, a pool and deck, guest lounge, spa treatment room, reception, and conference space.

"There's also a development approval in place, meaning someone could take it to its next level," said Ms Manvell.

"That includes five new accommodation rooms, a restaurant and bar, and a new pool, and the designs have been created by Richards & Spence, the same group of architects behind The Calile Hotel in Brisbane."

The property is for sale via CBRE, with pricing via agent enquiry.

Heritage character cottage

Another renovated gem bursting with charm can be found in the picturesque Sunshine Coast hinterland town of Maleny.

Maleny Lodge is a boutique hotel renovated in 2022 that retains the character of its 1905 heritage.

The seven-bedroom, five-bathroom boutique stay is comprised of Rosedale, the original three-bedroom main house, plus a further four guest rooms. An ideal tree changer option, it's currently a profitable hotel business being run under management.

The property also has a heated pool and patio with fire pit in its manicured grounds that overlook the woodland forest below.

It's currently for sale via Colliers as a turnkey purchase at an asking price of $3.7 million.

Landmark luxury retreat

Verandah House Country Estate is a landmark luxury retreat set within the beautiful Scenic Rim.

The property offers a rare opportunity to acquire a fully renovated and thriving boutique accommodation business in the heart of Tamborine Mountain.

It has undergone an extensive transformation, since achieving significant growth in both turnover and profitability, reflecting its elevated positioning within the luxury hinterland market.

The business operates under a sustainable model with consistent year-on-year growth and a strong repeat clientele base according to the Queensland Sotheby's listing.

The boutique beauty offers eight designer-appointed guest suites, each with incredible mountain views, bespoke interiors, and refined country charm.

There are indulgent spa facilities, a cedarwood hot tub overlooking the Gold Coast skyline, curated gardens, and direct access to the mountain's celebrated trails, waterfalls, and nature experiences.

Currently listed for sale via Queensland Sotheby's International Realty via expressions of interest.

Tuscan estate

The Hunter Valley wine region's "premier event and conference destination," Estate Tuscany, is on the market.

Located in the heart of Pokolbin and surrounded by rolling hills and picturesque vineyards, it's easy to feel like you're in the Italian countryside here, especially with the terracotta-hued four-star hotel.

The property has 39 guest rooms on almost 9.6 hectares of freehold land, along with seven large conference facilities and function areas serving corporate groups, wholesale clients, and private events including weddings.

There's also a restaurant and bar, swimming pool, tennis court, and even helicopter pad on the expansive grounds.

It's an opportunity to benefit from consistent domestic tourism demand in the heart of Australia's oldest wine region.

The property is listed for sale via JLL Hotels & Hospitality Group.