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Acute Gisborne bed shortage underpins beachfront motel for sale

A popular motel at Gisborne’s famous Waikanae Beach has gone up for sale with guest demand underpinned by an acute accommodation shortage in the region.

The Ahi Kaa Motel on Salisbury Road sits across the road from the popular swimming beach and a short walk from the city centre, making it a popular stay for vacationers and business travellers alike.

The 4.5 Tripadvisor-rated property boasts a variety of stylish accommodation options with spacious rooms, plus a comfortable manager’s house.

Its sale comes as Gisborne faces massive local demand for accommodation due to the number of motels and hotels being used for Ministry of Social Development emergency housing.
The need to house an influx of workers for multi-billion-dollar projects to repair roads damaged by Cyclone Gabrielle have added further to demand, with vacancies now hard to find across the city.

The well-appointed 15-unit motel at 61 Salisbury Road, Awapuni, Gisborne, is being marketed for sale by Mike Florance of Bayleys Gisborne.

Sale is by way of a tender closing on Wednesday 6 December, unless it is sold prior.

The motel is being offered to buyers as a freehold going concern, giving a new owner complete autonomy over the asset or the option to lease it out to an operator.

“With a steady influx of tourists and repeat corporate travellers to the region, coupled with an acute accommodation crisis, high motel occupancy rates make this a very attractive business,” said Florance.

The property for sale comprises buildings of some 630 square metres on 2,021 square metres of land. The site offers around 40 metres of prominent street frontage and off-street parking for 15 vehicles. It is zoned Inner City Residential under the Tairāwhiti Resource Management Plan.

The guest offering consists of six one-bedroom apartments with courtyards, three king studios, two kitchenette studios and a double spa unit, along with three villa studios. The property is fitted with air conditioning to each unit.

Other facilities include a guest laundry, an office and a very comfortable manager’s house with its own private covered courtyard.

Details on occupancy rates and business financials are available to potential buyers subject to signing a non-disclosure agreement.

“The property and business for sale is underpinned by a supreme location across the road from Waikanae Beach and a short walk from the CBD, set amongst the highly sought-after beachfront properties of Salisbury Road.

“Motel guests enjoy multiple dining options nearby with the new Midway Surf Rescue Community Hub offering culinary choices from fine dining to fish and chips in a beachfront setting. Also nearby, the aquatic playground at the newly completed Kiwa Pools facility is a popular attraction for families and water enthusiasts.

“Being positioned close to Gisborne Airport and the State Highway that runs north and south of the city ensures the motel is easily found and accessed by out-of-town visitors,” Florance said.

Click here for more information on the listing.

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