Budget B&B Backpacker Business For Sale
Methven / Mt Hutt Village New Zealand

Kowhai House Lodge and Backpackers

This rapidly growing business caters to budget minded travellers all year round. The peak season is the winter months when snow enthusiasts flock to Methven as it is the service town for the Mt Hutt Ski Area. The lodge provides warm comfortable self catering accommodation with a self help continental breakfast. There is a variety of accommodation options including bunk rooms, family rooms and double/twin room. Additional facilities provided include spa pool, broadband internet, drying room and a tuning room for the real professionals.

The summer market is showing strong growth from a low base. Tourists are attracted by the Mt Somers Walkway, Hot Air Ballooning, Downhill Mountain Biking, the Rakaia Gorge and many other spectacular outdoor activities. There is significant quantities of short term seasonal work in the district which also brings young people looking for temporary accommodation in the summer months.

Marketing / Promotions and Intellectual Property

The business has significant marketing and promotional activities in place. The major marketing initiatives include membership of the BBH hostel network, Mt Hutt Marketing Group, and various advertising programmes. The Lodge also relationship with a ski wholesaler for the winter season. This provides regular bookings throughout the season

The business has a basic website. The website address, email addresses, street signage and logos are included in the sale. All current business systems with training will be provided if required. The current owner / manager will be available for advise and support to the new owners as required.

Freehold Premises

Lodge building – This building has been used as a hostel facility for approx. 10 years. This site has a resource consent for 36 persons. The lodge has 8 bedrooms of varying sizes. One room is configured as a family room with ensuite bathroom (shower over bath, toilet and hand basin). This bathroom has been designed so that it can also be used as communal bathroom by having two doors (one is locked at all times depending on current use). Additional bathrooms have three showers, five toilets, and four hand basins. One double bedroom has been used by a manager/worker for the past 3 winter seasons so is not included in turnover.

Recent changes for 2008 season - The owners have converted the rear of the lodge (including the above ensuite room) to a large owner/manager's residence. This has a large lounge, two large bedrooms, small office, bathroom and separate toilet. This currently houses our 4 person family. At this stage the owners are sharing kitchen and laundry facilities with guests. However there is leeway in the current resource consent to install a separate kitchen for management use only. There are several options for the location of this facility.

These changes have reduced the number of beds in the guest area to 20 in 5 bedrooms. However if a new owner/manager required smaller living quarters there is an option to increase this back to 26 beds and retain a one bedroom managers flat with separate small office. A site visit would be best to discuss these options.

The lodge as a very large kitchen, TV room, and guest laundry facility. Much of this building as been upgraded and refurbished in the past two and half years. The lodge sits on 1012sqm section.

Adjoining house is available for purchase seperately. This is a four bedroom home sited on separate title of 1012sqm. This house has a newly installed heat pump, hot water cylinder and dishwasher. It has a private fenced garden on the far side of the house from the lodge building. The lodge and house sections are back to back and joined by the removal of the fence. Currently this house is rented for the ski season for $450.00 per week.

Plant and equipment being sold

There is an extensive quantity of chattels for sale with this business. Detailed list will be available to interested parties. Large items of particular interest are detailed below however owners are flexible on the inclusion of chattels.

• Four person portable spa pool
• Relocatable building set up as a snow equipment tuning and storage room.
• Relocatable building used as snow clothing drying room - equipped with large heat pump and 2 additional dehumidifiers.

Please note some items visible in photos are not included in the sale, as they are personal property of the family. A detailed list will be provided. Some items may be available for purchase separately

Day to Day Management

Staff

Currently the business employs one of the owners as a part-time manager and cleaner. There is also a part-time cleaner employed in the winter months. This business uses woofers/travellers for extra help with housekeeping.

The reception is open approx. 6 am to 10 pm. This is usually manned by a phone diversion to the manager’s phone rather than a personal presence.

Stock

Minimal stock is required in this business and would be included in the purchase price.

Lodge, Business and Chattels Offers over $400,000 plus GST if any.

Adjoinging Residence Price by Negiotation.

For more information call Cathie on 64 3 302 8887

About Methven / Mt Hutt Village

Methven is a small rural town located approx. one and quarter hours from Christchurch Airport and 30 minutes from Ashburton. In the winter months the town comes alive with thousands of visitors coming to enjoy one of the largest ski fields in Australasia – Mt Hutt. There are also a number of smaller fields in close proximity to the town. With the longest ski season in New Zealand Mt Hutt draws visitors from all round the world including Australia, Korea, Japan and UK.

In the summer months the town is busy with the seasonal agricultural work based around the major seed growing industry based in the Methven. In the summer visitors come to Methven to enjoy many outdoor activities including tramping, jet boating, mountain biking, hot air ballooning or to enjoy a great round of golf at one of the many course in the district. The town is well resourced for both residents and visitors.

We have fantastic medical facilities, including the Methven Medical Centre, physiotherapists, Aged Care facility, and alternative providers including massage therapists and natural remedies. Recreational facilities include a gym, indoor skateboard park, cinema, sporting clubs (squash, golf, tennis, hockey, rugby, netball etc.), community swimming pool, and library. The town has two primary schools and one high school. Pre-school education includes both a preschool/creche and Play Centre. Also there are many adult education opportunities with night classes, summer school and Senior Net (computer classes).

After Queenstown, Methven is the fastest growing area in the South Island. Looking at the fantastic qualities listed above – it is no wonder! It has all the positives of a larger town with the charm and fantastic environment of an alpine village.