ABOUT RAG

Regional Accommodation Group

At Regional Accommodation Group, our purpose is to identify, procure, and manage leasehold regional motel businesses that deliver a target return of 12% per annum cash yield paid monthly to our investors.

WHAT WE DO

We invest in leasehold regional motel businesses that fit into a proven investment matrix model that delivers a target return of 12% per annum cash yield paid monthly to our investors.
The motel industry exhibits low market share concentration and is highly fragmented with low sophistication of many operators, with no individual motel operator generating more than 5% of the industry’s total revenue. The motels industry revenue of $2.7 billion is projected to grow at an annualised rate of 2.9% to $3.1 billion over the five years to 2027-28, refer IBISWorld Motels in Australia March 2023.

Regional Accommodation Group Pty Ltd (RAG) has developed an investment matrix that delivers significant and consistent cash returns prior to factoring in any improvements in occupancy rates, room rates and operational efficiencies that it will achieve through increased market awareness of each of the motels through its brand strategy, corporate account relationships and technological improvements across the group. The Investments to date demonstrate acquisitions in this space can achieve high returns and strong reliable cash flows at low entry prices under the investment matrix metrics:

3.5 to 4.5 star motels
Average purchase price not to exceed a predetermined multiple of earnings before interest, tax and depreciation.
Motels with a minimum of 35 rooms
Motels in good repair requiring little capital improvement outside of owner agreed expenditure.
Lease term of minimum of 25 years
Average occupancy lease rental expenses not to exceed a predetermined percentage of revenue.
Geographical diversification by town within a portfolio of motels positioned in regional Australia.
One motel acquired for each targeted town to limit the competition within the group.

ACQUISITION DEAL FLOW

RAG has transacted on eight regional motels since commencing in November 2019 and all investments have performed without any unidentified “surprises” post settlement. RAG has established networks and supply contacts for transactions off market within its investment matrix.

INVESTMENT ENQUIRIES

Dominic Quilligan

Managing Director

Nicholas Bonifant

Investor Relations

Invest with confidence

  • Regional Accommodation Leasehold Motels
  • Strong & Secure Investment Opportunities
  • Well Positioned Properties
  • Long Leases
  • Well Established Business
  • Exceptional Cash Flows and Returns

Return On Investment

At Regional Accommodation Group, our purpose is to identify, procure, and manage leasehold regional motel businesses that deliver a target return of 12% per annum cash yield paid monthly to our investors.

© RAG – Regional Accommodation Group

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