AIRPORT LODGE BOTANY
We had cash at our disposal it was time to invest again in underpriced assets. We recognised the need for budget accommodation near Sydney Airport. The sites we were offered carried too much risk in terms of financial commitment.
Having purchased the Hampshire Hotel we looked for a smaller project and found the Airport Lodge in Botany. This was a boarding house on a large block of land. Behind the original terrace house there was a block of 24 units let on a permanent basis.
We put plans into Botany Council to improve this to a 59 bed boarding house. The buildings were linked to make the service of breakfast possible. The new areas were rented to corporations for their staff working during the week in Sydney, on various projects in and around the airport.
We sold this business which had a very strong cash flow. It only required one part time person to make breakfast, and clean the common areas. The Airport Lodge was positioned to sell to a "mum and dad" team and with a more regular cash flow, with less work than a motel.