Regional motels offer significant opportunity with high yield and strong opportunity for capital growth.  We have now successfully launched three regional accommodation funds with over 500 rooms and assets spread across three states. We have teamed up with RedHill Hospitality Management for actively managed investor exposure to this sector.  

Our first motel fund (RAF1)  is fully invested in the 72 room John Hunter Muswellbrook Motel, and the 55 room Peninsula Nelson Bay Hotel and Apartments, both acquired on double digit yields.  We have substantially increased occupancy and revenue since taking ownership, in line with our value add strategy.  Renovation and repositioning works have been undertaken selectively at the John Hunter Muswellbrook which have meaningfully upgraded the perception of the internal public areas. 

At the 55 room Peninsula Nelson Bay, we are in process of subdividing off the nine townhouses which will be individually sold and are expected to result in a material valuation uplift for the entire property.  The residual 32 room motel will be renovated and repositioned in early 2026 as a stand alone entity to match the beachside location.