23 Mar 2022
Words Chris Herde Courier-Mail

High demand for motels

Demand for motels in Queensland’s southwest has skyrocketed as investors take a punt on the regional boom continuing.

ResortBrokers’ Jason Vogler has struck more than $20m in motel sales in Roma and Chinchilla over the past 12 months, which after years of drought have had exceptional seasons that have bought new life to the region.

Mr Vogler said local and interstate buyers were fuelling the sales surge as they targeted the Western Downs and Maranoa regions to expand their property portfolios.

“Buyers are not as frightened to go out there as they once were,” he said.

“They always thought the coast was where they needed to be, to be seen. But it’s been proven that if you are out in the bush you can make a lot more money.

Mr Vogler sold the freehold of the Bungil Creek Motel and Roma Inland Motor Inn for just over $4m to realise respective yields of 12.43 per cent and 12.34 per cent.

Previous yields for Roma sat between 15-16 per cent. 

Mr Vogler also sold Chinchilla Tourist Park, Chinchilla Motor Inn and Kings Park Accommodation in Chinchilla, with yields falling to 13.8 per cent, from 16-18 per cent.

Mr Vogler said demand for commercial property in the region was unprecedented.

“The market is being driven by very solid occupancy levels, high tariffs and continued resource and commodity industry growth,” he said. 

“Low interest rates, mixed with a flourish of drive tourism market share, has also seen yields tighten, especially on freehold values.

“The Western Downs, Maranoa and Balonne shires are thriving. Record rainfall has produced massive crops and filled much-needed water reserves, which will continue to help these regions prosper.”