109 Carrington Street
Adelaide, SA 5000
$3,250,000 excluding GST
Map of 109 Carrington Street
HOSTEL 109 FLASHPACKERS. FREEHOLD BUSINESS WITH PRIME COMMERCIAL PROPERTY
Price to sell. Seeking offers over $3.25 million.
The price of this business has been recently increased by the vendor as a result of improved trading outlook and maintenance of the principle of pricing based on ROI.
Freehold business of Hostel 109 Flashpackers including Goodwill, Plant & Equipment, Stock and land & buildings at 3/111 and 4/109 Carrington Street, Adelaide, SA.
The total freehold property comprises approximately 695m2 of medium to high quality CBD property in 2 Strata Units with 9m of ground floor street frontage and rear lane access.
The freehold properties have the additional benefit of 43.9 kW of solar electricity generation.
Carrington Street is in the south-eastern sector of the centre of Adelaide, South Australia. It runs east-west, from East Terrace to King William Street, blocked at Hutt Street and crossing Pulteney Street at Hurtle Square.
The property is:-
* 200m from new Calvary hospital (due to open January 2020)
* Close to Victoria Square
* Bus stops/trams and train station – all within 5 minutes
* 5 minutes walk to central market
* Close to the many restaurants, cafes and shopping
A very successful business licensed for 68 Persons with high occupancy and a range of accommodation options.
Hostel 109 Flashpackers was established in 1980. Current owners of 6.5 years have substantially upgraded the premises and business with redevelopment of the Reception to provide an attractive and welcoming space and by incorporating the hotel standard rooms on the ground floor with a consequent increase in both revenue and profit.
Hostel 109 Flashpackers is currently configured to accommodate 55 persons in 27 rooms. The hostel offers a range of accommodation including male, female and mixed gender dorms and single, twin and double private rooms with shared bathroom, to the newly established hotel standard queen rooms with private bathrooms. All rooms are equipped with reverse cycled air-conditioning.
Hostel 109 Flashpackers also offers an in-house travel and tour sales advisory receiving commissions on sales in reception. Excellent reviews from many industry websites, along with word of mouth referrals, contribute to consistently high occupancy rates. Hostel 109 Flashpackers is consistently rated in the Top 3 hostels in Adelaide.
POTENTIAL FOR GROWTH
South Australian tourism is booming. Visitors to South Australia continue to increase year on year. On the basis of data from STR, October 2019 was a record breaking month for hotels in the city. The current owners have been moving the business up-market to a slightly older “Flashpacker” demographic who are more willing to spend at higher rates for better quality accommodation. There remains considerable opportunity to further improve the standard of accommodation in the hostel section of the business and further capitalize on the Flashpacker section of the market.
Other opportunities present themselves in the near to medium term, with the soon to be opened 340 bed Calvary Hospital, just 200 metres from Hostel 109 Flashpackers expected to increase the number of people staying at the Hostel while undergoing procedures or supporting relatives who are doing so.
Freehold titles, premises, business, websites and domain names, all marketing materials, along with plant, equipment, furniture etc. Full financials and assets register can be provided to genuine interested parties.
Enquire today to receive a full business memorandum. (Note: a non-disclosure/confidentially agreement will need to be signed prior to receiving further information.)
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Property ID: 503060118Last Updated: 14 Dec 2019