Nelson lodge is a big-city centre

The restaurant's dining area can seat up to 60 guests. Photo / Supplied

One of Nelson's largest accommodation providers, The Quality Hotel Leisure Lodge, is on the market for sale as a going concern or for lease, offering a prime opportunity for a buyer looking to take on an existing business.

Located at 40 Waimea Rd, the main arterial route in and out of the Nelson central business district, and just 10 minutes from Nelson Airport and Tahunanui Beach, the lodge covers a total land area of 8680sq m and includes land available for expansion of the business.

The sale includes a licensed restaurant and bar, conference facilities, 80 accommodation units sleeping a total of 275 guests, as well as residences for the manager and owner.

The Quality Hotel Leisure Lodge is being marketed by for sale or lease by Nick Lambert of Bayleys Nelson and Grant Baxter of Bayleys Marlborough.

Lambert said the lodge was being marketed as a freehold going concern for $12.25 million or as a business lease for $2.2 million plus GST a year.

"There are several options available for interested parties," Lambert says. "They can purchase the land, the buildings, and the hotel business, grow the business then sell the lease. Or they can retain the property ownership and derive income from the lease.

"Alternatively they could buy the business and operate it as an owner-operator or employ a manager.

"There is also the option to purchase just the lease, from which the owner will create a new 35-year lease from possession."

The lodge accommodation features studio units, one- and two-bedroom units and apartments, with room rates from $124 to $260 a night inclusive of GST. All the rooms feature refrigerators, irons and ironing boards, Sky TV, hair dryers and alarm-clock radios.

The lodge facilities include two fully equipped laundries, wireless internet connection, a barbecue area, swimming pool and a spa. There is also an on-site conference facility for large groups of up to 50 people, with catering facilities and equipment hire available.

The restaurant and bar, Flames on 40, serves breakfast and dinner from an a la carte menu and seats 35 people. The bar, open from 5pm daily, includes a big-screen TV for sports fans.

The hotel employs a total of 20 full-time staff in the winter and 26 in the summer, including a full-time manager.

Lambert says the lodge has undergone a recent $7.5 million refurbishment which includes the addition of 12 motel-style units.

The upgrade also included construction of residences for both the owner and manager.

"Situated behind reception is a newly constructed luxury four-bedroom house, as well as an 80sq m two-bedroom self-contained flat. These can either be used as separate residences for the owner and manager, or they can be easily interconnected to create one large home."

He says the new owner may wish to build on the existing conference facilities available, with land already acquired for the construction of further conference areas.

"This is not only an excellent opportunity to take on an existing business but also to capitalise on the opportunity to expand that business," Lambert says. "This may appeal to a hotel chain or accommodation operator seeking to establish a presence in the top of the South Island."

bayleys.co.nz