A lifestyle lodge business at Paihia

Peppertree Lodge operates within leased premises at 15 Kings Rd, Paihia. Photo / Supplied

Agents say a purpose-built Bay of Islands backpackers/budget accommodation business can offer a great lifestyle to its next owners.

Peppertree Lodge, which operates within leased premises at 15 Kings Rd, Paihia, has an asking price of $135,000, with the business expected to be zero-rated for GST. The popular accommodation provider also offers its new owner/manager comfortable accommodation handy to the beach, bus stops and all local amenities.

ABC Business broker Paul Buer says Paihia is an ideal base from which to explore the area's spectacular scenery; it hosts cruise operations such as the famous Hole in the Rock, and the surrounding areas include Russell and Kerikeri.

"It has beautiful beaches and famous diving sports, such as those around Matauri Bay and the Cavalli Islands, and Paihia is a great launching pad to visit Ninety Mile Beach and Cape Reinga."

At Peppertree Lodge all triple/quad and double rooms have private bathrooms, while the dormitory rooms have shared facilities. Prices range from $16 to $113 per night, depending on room size, configuration and seasonality.

Largely due to consistent standards and offering value for money, the lodge has developed an excellent reputation over the past 20 years. "There's regular referral business and positive online ratings," says Buer.

A comfortable house provides accommodation for the business owner. This comprises around 120sq m, including two double-bedrooms plus a third single-bedroom/study. The business pays all operational overheads for the owner's portion, including rent, rates, insurance, power, telephone, broadband and water.

Peppertree Lodge does not employ full-time staff but does contract some cleaning work. The owners manage day-to-day activities, though largely self-sufficient guests require little assistance beyond advice on local amenities and tours etc.

Inquiries and reservations can be accessed through multiple booking platforms agoda, bookit, expedia, hostelsclub, hotelbonanza and the listing of studio and doubles is in process on Air B&B, says Buer.

The premises are now occupied on a long-term lease basis, and a new 21-year term would be available to a suitable buyer. The business has shown consistent revenues and profits over the last few years, but additional effort would add value.

"This business offers consistent profits, all-expenses-paid accommodation and a beautiful location."