Tourism Brokers are pleased to present to market the Freehold business Castaway's Backpackers and Guest Lodge which is positioned with main street frontage in regional Far North Queensland.
The business has established strong connections with inbound workers looking for short term rental up to three months, while they find longer term housing.
Close to 100% occupancy, this property is a cash cow, with low operational costs less than 25% of Gross Rentals.
Operators only provide linen on arrival, and guests pay to clean them in coin operated washing equipment each week.
All rooms have air conditioning which guests pay for via coin operated machines in their room.
Projected next year to surpass $560,000 in Gross Rental, this hostel has had a major renovation and floor redesign to add a further 10 rooms, to now be a 34 room hostel on 1,012 sqm. Licensed for 52 beds, the hostel caters for seasonal backpackers and new workers coming to Cairns providing an excellent living experience for new workers coming to the city.
Currently one cleaner occupies one room, and work for their room, and they are joined by one Resident Caretaker who oversees the operation.
With the arrival of an owner operator, these two rooms are forecast to be rented out, and owners take on the roles of cleaner and manager as there is no need to live onsite.
All rents and fees are direct debit, and no real office hours are needed. A daily increasing waiting list of future tenants is growing, for when tenants move on and the current operators receive an influx of enquiry each day regarding accommodation enquiries when advertised, which highly suggest an increase in rates is absolutely achievable. Rates are also currently not increased over peak periods, so the property has a huge upside potential for a new operator.
The owner/manager accommodation is one bedroom with ensuite and a separate kitchen positioned to the front of the hostel, and front office.
Facilities and services: include the following:
- Cooking / kitchen facilities
- Communal kitchen
- Barbeque
- Fridges and television in communal lounge
- Fully equipped laundry
- Owned sheets
- Coin operated air conditioners
- Coin operated washing machines
- 40kw solar system
- $25,000 worth of new air conditioners going in now and $30,000 worth of air conditioners installed and electrical upgrades plus new hot water system.
It is through these extra services that the current vendors have built a very successful business.
Net Profit: $322,459 (based on 24 rooms) for 2023/24
Forecast 2024/25 $437,194 (based on 34 rooms)
Contact Antonio Curulli from Tourism Brokers for further information or to arrange an inspection.
Property ID: 2718BF (quote when enquiring)
Property Code: 5028
