Coastal & Country is an independent real estate agency and advisory business based in the Bay of Islands. We cover residential, rural lifestyle, horticulture, farming, commercial, tourism and special project property categories and going concern businesses — and we strive to deliver a premium service and result for every client.

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Haast World Heritage Hotel

Pre-purchase analysis

The Youth Hostels Association of New Zealand Inc. (YHA) had made a conditional offer for this property and retained us to advise on viability of the proposed acquisition. In particular—investigating the long-term potential of the business by re-positioning the operation at the budget end of the visitor accommodation market (including campervan park and tent sites) and leveraging the YHA distribution network.

Responsibilities

  • Research global tourism trends relevant to the proposed purchase/product.
  • Research the West Coast visitor market.
  • Develop a five-year financial model based on the re-positioning assumptions.
  • Model various occupancy and revenue improvement scenarios.
  • Model various debt/equity scenarios based on a range of occupancies.
  • Determine break-even occupancies based on various debt/equity assumptions.
  • Comment on the suitability of co-investment.

Client
The Youth Hostels Association of New Zealand Inc.