Azabu Byron Bay
The Offer
On offer for sale as a going concern are the freehold of a purpose-built tourist facility and its well-established short-term accommodation and
spa retreat business. The sale is on a walk in walk out basis and is inclusive of the furnishings (minor owner exceptions), plant and equipment, an excellent website and the business name.
Please contact us to obtain an Information Memorandum and to arrange an inspection.
The Property
The property is on a 1.946 hectares (4.8 acres) parcel of land located in a tranquil setting surrounded by forest within four kilometres of the tourist hub of Byron Bay, one of Australia’s iconic seaside towns in the Northern Rivers region of NSW.
The pavilion style boutique accommodation consists of three main buildings, linked by foot timber bridges, and include five guest rooms, a manager’s residence, a combined reception and dining room with a concealed kitchen, a twin therapy/massage room and a covered laundry and storage area. Other improvements include an in-ground pool with a hot tub and sauna, gravel driveway and car parking area, landscaping and various deck areas. The facility was built circa 1998 and presents to a high standard having undergone substantial renovation and upgrades over the past two and a half years.
The studio-style guest suites are well-appointed and feature sound-proofing, timber flooring, air conditioning, ceiling fans, louvre windows and bi-fold doors opening out onto a wood deck. There are three queen rooms with sunken spas and two king rooms. Each of the tastefully decorated and private rooms has an outlook towards the surrounding hoop pine trees, which can live up to 450 years and grow to a height of 60 metres!
The manager’s residence consists of an open plan kitchen and living area, a single bedroom, a bathroom and a small courtyard with an attached carport. It features a spa and split system air-conditioning system (there is the opportunity to expand the residence subject to council approval).
The Business
The boutique accommodation business, known as Azabu, is well established with approx. 18 years of trading. It enjoys repeat business and an excellent reputation for quality hospitality. It is self-rated four and a half stars and is focused on couples only. It is positioned as a Japanese inspired luxury retreat or short stay for those looking for a romantic getaway or a relaxing experience with some on-site pampering in the day spa. Guests can enjoy a freshly made breakfast in the dining room or can have the option to be a guest at Byron’s Beach Cafe. Turnover is healthy at approx. $418-450k with last year’s net profit at approx. $138k. We note that the property is currently run under full management, with the current efficient team happy to stay on. There is scope for further improvement in the bottom line through owner operation with casual help for cleaning and reception work. We estimate the net profit potential to be $185k p.a. under that scenario.
The Location
The chic beachside town of Byron Bay is a long established and internationally renowned tourist destination located approx. 40 kilometres east of the regional city of Lismore, 25 kilometres north of Ballina and approx. 80km south of the NSW/QLD border. Tourism is the principal driver of the economy. In 2013, Byron Bay received approx. 526,000 domestic overnight visitors and 160,000 international overnight visitors, with the majority from the UK and Germany. Visitors are attracted to the town’s gorgeous beaches and lush green hinterland, as well as, its vibrant community and its numerous restaurants, cafes and festivals. It is a haven for sea-changers, especially those with artistic and New Age inclinations, and offers a relaxed lifestyle. The Skinners Shoot locality, in particular, is well known amongst locals as one of Byron Bay hidden gems being a short distance from the centre of town yet is unaffected by the peak holiday crowd.
Agent’s Opinion:
Azabu is a high-quality facility located in a sought after locality in one of Byron’s premium rural locations yet only a 5-minute drive into town. It is an easy-to-manage property with no restaurant component and a small number of rooms. The business is easy to run and offers a great lifestyle with substantial income. This opportunity would suit a couple looking to enjoy a more relaxed lifestyle without sacrificing income or an investor happy to enjoy the healthy income stream and impressive capital growth.
View Full Description
