26 Oct 2022
Words Christine Retschlag Informer 104

How A Chance Meeting While Driving His Taxi Changed His Life

Here at ResortBrokers, we love hearing about how the lives of the people in our network have changed for the better with a move into, or within, the accommodation industry. These are the stories of those who decided to make a positive move.

WHO: COLIN & NANTIYA VAUGHAN

MOVED FROM: BRISBANE 1,072KM

FORMER JOB: TAXI DRIVER

BUSINESS: MOTEL CARNARVON ROMA, QLD

Twenty-three years ago, ResortBrokers Founder and Chairman Ian Crooks jumped into a Brisbane cab, bound for the airport on a business trip. He started chatting with the cabbie about his life and asked: “Have you ever thought about owning a motel?” The rest, as they say, is history.

“I was an owner driver at Yellow Cabs in Brisbane. I got a job at Chelmer and Ian Crooks jumped in. He talked about motels all the way to the airport. When he got back from his trip, we went and talked to him, looked at the figures on 10 motels and physically looked at seven properties,” Mr Vaughan says.

“We nearly didn’t get Motel Carnarvon as it was under contract, but that fell through. We inspected the 20-room property and agreed to buy the lease for $285,000.

“I’d been driving a taxi for six years and was working 90 hours a week. We had two children, aged five and three, who I rarely saw. Every time we looked at another business like an IGA store, I thought we’d be working 14 hours a day and still never see the kids. Even though we might be busy in a motel, we would still get to see a lot more of them.” 

Mr Vaughan says there have been lots of learnings along the way, including when a customer told them the reason he wasn’t returning was because of the quality of the beds.

“After that, every time we had some spare money we’d buy new beds,” he says.

“In 2002, we talked to the motel owner and paid around $700,000 for the Freehold. We immediately renovated bathrooms, installed split-system air-conditioning and painted the interiors and exterior. Subsequently, our occupancy and room rates increased.”

The Vaughans continued to invest in the property, building 10 apartments in 2005. They began to harbour concerns that they may have constructed a “white elephant”.

However, 2006 brought the gas boom and its workers to Roma who occupied approximately 11 rooms for the next six years. They renovated the managers’ residence in 2007 and built an additional eight apartments in 2008.

This brought the total number of rooms to its current 38. In 2011, after increasing the turnover from $300,000 in 1999 to $1.8 million, the Vaughans sold the lease and became landlords, returning as owner-operators in 2016.

In 2020/21, 11 three-star motel units were upgraded to four-star apartments. Motel Carnarvon continued to trade almost continually throughout COVID, capitalising on the increased traffic headed west.

Colin, 68 and Nantiya, 63, now have Motel Carnarvon on the market, having transformed it into a highly-successful business, with a projected turnover of $1,719,880 and a projected net profit of $980,331.

“We weren’t going to sell for another three years but we thought if we get the right price, we’ll let it go, so we can focus on retirement,” Mr Vaughan says. 

“Our biggest learning has been in any business, don’t think about what you want but what your customers want. Do everything you can to keep them happy so that they return and share their positive experiences with their friends. 

“If you think about the money you want to make instead of what your customers need, you will fail.”

Mr Vaughan says prospective new buyers can enjoy a lifestyle business which is in great shape. 

“The success of motels is reliant on clean rooms, customer service, product and excellent staff. We are fortunate to have all of those things,” he says.

The Freehold Going Concern of Motel Carnarvon is on the market with ResortBrokers south-west Queensland broker Jason Vogler for $8.5 million. Contact Jason on jasvonv@resortbrokers.com.au or 0427 431 213. END