A provincial motel in a strategic location

4:56 AM Saturday February 6, 2016 Colin Taylor

The Te Kuiti Motel on the corner of Carroll St and King St, Te Kuiti.

A motel complex strategically situated in the King Country town of Te Kuiti on the main highway between Hamilton and Taranaki is for sale as a going concern business within a leasehold property.

“For someone wanting a business with a consistently good turnover and profits, and also looking for a change of lifestyle to a great rural community, the Te Kuiti Motel is an excellent investment for an asking price of $425,000,” says Darcy Snowden of Christopher Brown & Associates Limited, Auckland. 

Snowden says careful research was undertaken before the Te Kuiti Motel was built in 2001 on the prime corner site of Carroll St and King St.

“This was originally a railway stopover town which now serves a large rural community,” he says. “Studies were made to ascertain where the business would come from and the type of accommodation people would be seeking in Te Kuiti. The conclusion was that the ideal accommodation establishment would be a 12 unit motel complex comprising six one-bedroom units and six studio units to offer comfortable accommodation at a realistic tariff.”

Snowden says the motel is effectively sited on the main road running north and south through the King Country town.  

The one bedroom units have full kitchen facilities and are ideal for families and groups while each studio unit has tea and coffee making facilities, microwave oven and fridge. All the one bedroom units can sleep up to four guests with a configuration to suit different requirements. “There’s generally a queen bed in the main bedroom and two singles in the lounge. The bathrooms, like the units themselves, are spacious with good showers and lighting. Each unit also has a couple of lounge chairs, two or four chair dining suite and television that can receive TV1, TV2, TV3, three Sky sports channels, two movie channels and Trackside.”

Snowden says that when the motel complex was constructed, the needs of wheelchair guests were recognised along with business opportunities they provided.

“Two of the studios have special features catering to the disabled - something that few motels have,” he says. “This has certainly proving worthwhile due to hospitals and the Accident Compensation Commission placing clients in temporary accommodation while their housing is altered to cater to their disabilities.”

The work of the operators was also factored into the design of the complex with a centrally located, large laundry having two commercial washing machines, two commercial gas dryers, folding table, ironing press and shelving for all linen and towels.

“Rare for a motel of this size is a separate motel kitchen for preparing breakfasts that guests are permitted to use at times,” Snowden says.

True Commercial - Te Kuiti Motel - entrance.jpg

Entrance to the King Country’s Te Kuiti Motel. 

The complex comes with a three bedroom home which serves as the owner’s accommodation with the office conveniently positioned off the living area. The house features a bathroom and an ensuite off a master bedroom, private courtyard, garage and utilities shed.

“Another attraction is the good onsite car parking along with excellent street parking for trucks and other large vehicles. The cafe on the opposite corner makes it a very popular motel for contractors working on projects in the town along with truckies seeking overnight accommodation to break their journeys.”

Snowden says the owners have resisted using any online booking websites in preference to highlighting their own website and one other.

“However, given they are close to the Waitomo Caves, and with most people booking online nowadays, the owners have recognised they are missing out on a considerable amount of business and feel this is something a new owner would be wise to implement.”

An important consideration when purchasing a leasehold motel is the number of years remaining on the lease. “In this case, there are 30 years still left to run with the rent for this property being realistic and in keeping with industry standards.”

Snowden says Te Kuiti serves a wide rural community so it is an ideal base for company reps, health board staff working in the outer areas including dental and district nurses, Police officers, and contractors.

“A new development has been increased residential construction due to the number of people selling up in the cities to take advantage of high house prices and buying in the town where they can purchase homes at a lower price giving them money in the bank.

“Reflecting commercial confidence in the town is the opening of a new Mega Mitre 10 and New World supermarket.”

Local businesses have also benefited from rising tourist figures with Te Kuiti promoted as “The shearing capital of the world” and an annual shearing competition generally held late March early April. “Visitors are drawn from all over the globe to the Waitomo Caves, about 10 minutes north.” Additional attractions include caving, abseiling, black water rafting and other adventure activities that are rising in popularity with companies taking their staff on team building exercises.  Nearby tourist drawcards are a 90 km bike and tramping trail that traverses native bush through the Pureora Forest Park and a Hobbit film set south of the town.