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 comprises of some 2,400 establishments turning over a combined $3.0 billion of revenue, generating an annual EBIT of $340 million (Source IBIS World Industry Report H4402 Motels in Australia 2017 – 2018).
The largest services segment in the industry is three-star accommodation making up more than 60 percent of the total graded motel room supply. The motel industry exhibits low market share concentration and is highly fragmented, with no individual operator holding a significant share of the market.
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 own branded motel chain, corporate account strategies and technological improvements across the group. The Initial Investments demonstrate acquisitions in this space can achieve high returns and strong reliable cash flows at low entry prices under the investment matrix metrics:
ACQUISITION DEAL FLOW
RAG has acquired two regional motels as its first investments (refer Page – Initial Investments). The two motels in Hay (NSW) and Ballina (NSW) were settled in November 2019 and December 2019 respectively and have performed above expectations for those non Covid-19 affected months. RAG has identified a number of potential acquisitions currently being evaluated for acquisition during Q1/Q2 2021.