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Runaway Bay Motor Inn
- Runaway Bay Motor Inn, the largest motel on the Gold Coast, is sold to the Mangu family after a competitive bidding process.
- The motel market is experiencing a shift. Properties are being viewed as versatile investment vehicles driven by high demand and limited supply.
The Runaway Bay Motor Inn, a prominent establishment on the Gold Coast, has been sold for the first time in 30 years after a fiercely competitive bidding process. The motel changes hands from its previous owners to the experienced motel operators, the Mangu family. The sale process, managed by CBRE’s Hayley Manvell, Taylor Morris, and Mark Witheriff, saw over 200 inquiries and 14 offers for the 41-room property.
This large-scale motel boasts a resort-style swimming pool, a restaurant and bar, a function area, a one-bedroom manager’s residence, guest laundry facilities, and expansive grounds. Its prime location and potential for varied use underpinned a sharp yield of 2.75%.
The Mangu family, who also owns the Tweed Central Motel in Tweed Heads, plans to focus on operational improvements for the newly acquired property. Their investment further underscores a trend in the motel market—the increasing perception of motels as versatile investment vehicles beyond just accommodation businesses.
CBRE’s Hayley Manvell highlighted this shift: “With stock levels remaining tight, buyers are moving to secure high-quality assets with long-term upside. The increasing scarcity of motels, with limited supply and soaring demand, has underscored a shift in how these assets are being viewed.”
The Runaway Bay Motor Inn attracted diverse prospective buyers, from moteliers to government bodies, retirement groups, and investors seeking opportunities for strata titling or long-term redevelopment.
Taylor Morris of CBRE pointed out that the increasing population and tourism growth on the Gold Coast have led to a heightened demand for well-located motels. “The competitive campaign and sheer number of underbidders speaks volumes about the strength of the national motel investment market and South East Queensland,” Morris added.
With the upcoming Olympics and the booming tourism sector, sellers are capitalizing on the current market conditions. This trend indicates the region’s robust growth potential and the compelling returns that this style of accommodation asset can provide for investors.
