• No Agent Property SA RLA 247930
  • No Agent Property

For Sale

$3,200,000

109 Carrington Street, Adelaide, SA 5000

  • Hotel/Leisure

Last updated: 28th November 2020

Listing ID: 3010

  • 695.0m2 Floor area

HOSTEL 109 FLASHPACKERS. FREEHOLD BUSINESS WITH PRIME COMMERCIAL PROPERTY

Phone enquiries - please quote property ID 20602

Price to sell. Seeking offers over $3.20 million.

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 FREEHOLD
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.

THE LOCATION:
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



THE BUSINESS:
A very successful business licensed for 68 Persons with high occupancy and a range of accommodation options.

A pivot in business direction as a result of the Covid-19 impact on short-term tourism has significantly reduced costs, made the business simpler to operate and allowed the business to continue achieving profits each month since the Australian and South Australian Governments closed borders in March, 2020.

Hostel 109 Flashpackers was established in 1980. Current owners of 7.5 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 can be configured to accommodate 55 persons in 27 rooms or to focus on private accommodation. 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 cycle 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
Prior to April, 2020, South Australian tourism was booming. Visitors to South Australia continued 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.

New owners would have the opportunity to maintain the current business direction or capitalise on the considerable opportunity to further improve the standard of accommodation in the hostel section of the business to take advantage of the Flashpacker section of the market when short-term tourism activity returns.

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.



INCLUSIONS:-
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.)

DISCLAIMER No Agent Business (www.noagentbusiness.com.au) is an Australian For Sale By Owner website operating since 1999. We proudly assist commercial property owners who are looking to sell or lease their own commercial property without paying any real estate commission. While every care has been taken to verify the accuracy of the details in this advertisement, the correctness cannot be guaranteed.

WalkScore®

This property is a walker's paradise with daily errands not requiring a car. Great for getting chores done over lunchtime. Seek out the lunch and coffee options close by. There is excellent transit available from here where public transportation is convenient for most trips.

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  • No Agent Property SA RLA 247930
  • No Agent Property