Housing shortage prompts Ville and Ardo owner to buy properties to fit staff

As Townsville struggles with a housing shortage, a major local employer has taken the desperate step of buying a motel to accommodate new staff. See why it is happening.

To circumvent Townsville’s dire housing shortage, a major employer has taken the drastic step of buying another motel to accommodate its growing workforce.

Following last year’s purchase of the 10-unit Townsville Holiday Apartments to accommodate their staff, the Morris Group – owner of Ville Resort-Casino and soon-to-open five star hotel Ardo – recently bought the eight-unit Motel On Mitchell at 80 Mitchell Street.

The Ville Resort-Casino and Ardo CEO Michael Jones said their latest purchase was necessary to ensure staff moving to Townsville to work at The Ville or Ardo had adequate housing while they got settled and searched for more permanent accommodation.

He said Townsville’s tight rental vacancy rates and lack of housing presented a “substantial obstacle” to encouraging people to move to North Queensland and fill job vacancies.

“The location of both unit complexes was really important to us. We wanted our team members to be able to walk or scooter to work if they don’t have access to a vehicle,” Mr Jones said.

“These properties are being filled with new team members who are moving to Townsville from other parts of Australia or overseas.

“While we will always prioritise providing job opportunities to people already living in Townsville, labour market conditions have meant we had to look further afield to fill the many new positions created by our soon to be opened hotel Ardo.”

Motel On Mitchell at 80 Mitchell Street, North Ward, has sold to the Morris Group. Picture: Supplied.

Aaron Power stands in front of the Townsville Holiday Apartments in North Ward bought by the Morris Group for just under $2m last year.

In addition to the purchased unit complexes, he said they also leased other properties to ensure there was enough housing close to the city to accommodate staff in the lead up to Ardo’s opening at the end of the year.

“Additional housing is needed to increase the rental market pool in Townsville, especially in the desirable inner-city suburbs,” he said.

Townsville's first luxury hotel Ardo ideally positioned on Townsville’s foreshore is on track to open by the end of 2023. Picture: Supplied

A concept image of the corner Ocean Suite at Townsville’s first luxury hotel, Ardo. Picture: Supplied

“Rental stock has been removed from the long-term rental market and is instead being used for short stay accommodation such as Airbnb.

“Affordable housing close to the city is desperately needed so CBD businesses are able to attract staff.”

According to the Real Estate Institute of Queensland’s latest quarterly Residential Vacancy Rate Report, Townsville’s tight rental vacancy of 0.8 per cent, sits below the state average of 1 per cent.

Motel On Mitchell at 80 Mitchell Street, North Ward, has sold to the Morris Group. Picture: Supplied.

Mr Jones said they were recruiting up to 200 workers at Ardo, across hospitality, culinary, hotel, venue management, housekeeping, and more.

Colliers commercial sales executive Aaron Power said he and Ray White’s Troy Townsend listed Motel On Mitchell, following Colliers’ sale of the Townsville Holiday Apartments.

He said the Morris Group were drawn to its location, due to its proximity to The Ville and Ardo.

“The property had been fully refurbished in 2020 and was in excellent condition,” Mr Power said.

“Staff will be welcoming of the ability to move to Townsville, without not having to worry about finding accommodation initially while they settle into our city and their new jobs.”

Originally published as Housing shortage prompts Ville and Ardo owner to buy properties to fit staff