Drastic rental crisis prompts hotel operator to buy holiday units

A Townsville hotel operator has resorted to buying holiday apartments for their staff to live in. Read why it was key for the business moving forward.

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

The owner of Townsville’s signature Ville Resort-Casino and soon the new luxury hotel Ardo has responded to a drastic rental crisis by buying accommodation for its staff.

The Morris Group’s CLG Properties Pty Ltd has acquired Townsville Holiday Apartments in North Ward for just under $2m.

The group’s executive chairman, Chris Morris, said they had been prompted to buy the complex to help attract and house staff, particularly given its new hotel, Ardo, now under construction, is due to open later next year.

“We bought it for staff. Getting rental accommodation in Townsville is as hard as anywhere else. If you can provide accommodation, that’s a big plus, especially for people coming from interstate or overseas,” Mr Morris said.

Mr Morris said it was mainly to do with Ardo, being built next door to The Ville Resort-Casino, which would require another 200 staff.

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

“We’re not getting into motels,” he said, although they do have “a couple” of flats for staff.

Agents Aaron Power of Colliers Townsville and Troy Townsend of Ray White Commercial Townsville jointly marketed the apartments at 89-91 Eyre St.

The Townsville Holiday Apartments in Eyre St have sold for just under $2m.

Mr Power said the seven two-bedroom apartments and three studio apartments were all self-contained and close to the Strand and the Morris Group’s hotels.

“It’s a great location in a blue chip suburb. It’s a very nice, neat and secure property,” Mr Power said.

Mr Townsend said the acquisition highlighted the difficulties of finding somewhere to rent.

He said not many employers who had the wherewithal to buy rental properties but that there were other instances such as Exact Civil Construction’s recent purchase of the Royal Private Hotel in Charters Towers for staff accommodation.

“It does show how hard it is to find rentals. I’m still hearing from the Ray White office that 40 people are applying for a single property,” Mr Townsends said.

Latest figures from the Real Estate Institute of Queensland show Townsville’s and Charters Towers’ vacancy rate is a cramped 0.5%, while the Burdekin’s is even tighter at 0.4%.

The REIQ says it is unlikely there will be any significant shifts in the foreseeable future and that a healthy vacancy rate is between 2.6% and 3.5%.

Originally published as Drastic rental crisis prompts hotel operator to buy holiday units