Plenty of potential to go with the flow

The Riverside Motor Lodge is on an elevated 1.288 hectare site overlooking the Waikato River. Photo / Supplied

Riverside Motor Lodge in Cambridge, on an elevated 1.288 hectare site overlooking the Waikato River, is being marketed for sale as a property with potential for a wide variety of uses, just a five minute walk from the centre of the picturesque provincial town.

Currently, Riverside at 7 Williamson St, Cambridge is run as a 34-room motor lodge featuring a large conference and function venue.

It is being offered for sale by the owners of Pavilion Group Ltd through Ross McLauchlan and Belinda Brice of Link Business Broking of Ellerslie, with tenders closing 4pm on Wednesday, May 26.

"The vendors purchased the land, buildings and business in 2007 with the objective of redeveloping the site into a stylish and high quality retirement complex featuring independent living villas and an assisted living apartment complex. The development was to be marketed under the 'Pavilions at Cambridge' brand," McLauchlan says. "The business continued to run as a Motor Lodge catering to corporate and leisure business while the plans and consents for the redevelopment were completed.

"However, the plans, consents, costings, and detailed fixtures, fittings and engineering for the assisted living part of the complex have all been completed and will be made available to the purchaser allowing a new owner to literally start the retirement village project."

McLauchlan says the current owner is an experienced retirement industry operator who is available to assist as a consultant in the completion of the development if required by the purchaser.

"Alternatively, the density of the remainder of the development could be altered should a new owner wish to pursue a different concept."

McLauchlan says there is a shortage of quality retirement village, hotel accommodation and similar facilities in the region so the gently sloping 12,880sq m site lends itself to "a multitude of future development configurations. It can't be used for retail purposes but other than that, a new owner could continue with the retirement village redevelopment plans, continue running the property as a motor lodge or pursue a wide variety of other possible uses with few restrictions."

The motor lodge complex consists of four main buildings comprising three accommodation blocks including reception, administration, laundry, a self-contained, three-bedroom manager's apartment and a large function centre that can cater for up to 200 guests.

Originally opened in the 1970s the buildings are constructed of concrete block and finished with aluminium joinery.

Thirty studio units comprise the majority of the 34 rooms within the lodge. The studios have super-king, double or single beds and will house a maximum of three guests. They have tea and coffee-making facilities, refrigerators and TVs. Nineteen have dedicated showers and 11 units have showers over baths.

Three family units each house a maximum of five guests and feature a bedroom, lounge and kitchenette with double beds in the bedrooms, and twins or super-king beds in the lounges. They have limited cooking facilities, shower cubicles and the same appliances found in studio units.

The 34th room is a special access unit for a maximum of three guests with a double and single bed in the same rooms equipped with the same appliances as studio units. In addition the special access unit features a non-slip, flat shower base and is wheelchair accessible. Sky television is available in many of the units.

McLauchlan says the motor lodge's function centre is a popular meeting venue with companies such as Fonterra, Bunnings, Wrightsons, National Bank and the Waipa District Council using it for meetings, training and social events.

"The function centre has two main function areas and a full bar set-up," he says. "There are a variety of room configurations that suit a wide range of uses and there are several outside break-out areas."

Cambridge Rotary meets at the function centre each week and it is a favourite venue for local weddings, anniversaries and birthday parties.

"The Riverside Motor Lodge also attracts sporting and school groups throughout the year for a variety of pursuits such as golf, rowing and swimming with the function centre serving as an ideal facility to cater to these larger groups for meals and meetings. Bookings for these activities often result in 100 per cent occupancy for up to a week at a time."

The lodge has a big kitchen that is fully equipped and capable of producing large numbers of meals. "There is also the potential for out-catering because of the kitchen's production capability," McLauchlan says.

The vendors purchased the land, buildings and business operating as The Riverside of Cambridge in 2007.

"Prior to this, the business was run under management, and had for a number of years performed well below its potential. The current owners purchased the business to convert the site into an independent and assisted living retirement complex and planned to continue to run the hotel business while the retirement facility was planned, and consented.

"There has been a moderate capital investment in the accommodation block and a significant upgrade of the conference facility. Since the current owners took over the business, there have been considerable improvements made in trading and advance bookings are showing healthy increases for accommodation and functions."

McLauchlan says an experienced hotel operator should be able to make further positive operational improvements such as installing a proprietary property management and reservations system for a minimal investment cost.

The potential for business expansion could also be enhanced by increased marketing, an affiliation with a branded hotel group and by introducing more food and beverage options from the function centre for the local community.

He says some planned large international events will see accommodation demand in the Cambridge and Waikato region stretched to a maximum, including the World Rowing Championships in October and November 2010 at nearby Lake Karapiro, the pool games for the Rugby World Cup being played in Hamilton in 2011, and the annual V8 street race in Hamilton City.

"There are a number of exclusive bed and breakfast-style accommodation, and boutique lodges in and around Cambridge but there is not a large supply of properties offering motel or motor lodge-styled rooms.

"With its park-like surroundings, closeness to transport links and allowable land uses, the location is superb for whichever future direction a new owner may wish to take the business."

McLauchlan says Cambridge is only a 25-minute drive from Hamilton and close to Lake Karapiro, with a full schedule of aquatic events spanning each year which draw large numbers of participants including school groups.

"Mystery Creek attracts many exhibitions and events including the well-known Waikato Field Days when the accommodation in the Waikato region is usually booked out.

"The newly opened Claudelands Events and Exhibition Centre with its arena has already attracted a significant number of future events. The council also has plans to rebuild the Aquatic Centre which is adjacent to Riverside Motor Lodge and is exploring a number of future options."