Buy your own job: Bed and breakfast properties up for grabs as tourism rebounds

Lisa Calautti

First published 02 March 2023, 9:53am

A surge in domestic tourism is seeing the accommodation sector thrive. Picture: Getty

As domestic tourism continues to rebound and overseas travel experiences a resurgence, many savvy investors are cashing in by buying their own bed and breakfast establishment.

And there are plenty of commercial properties on the market that offer ambitious Aussies the chance to buy their own job.

Key holiday destinations, including the Gold Coast, the New South Wales Central Coast, Byron Bay, Lorne, the Mornington Peninsula, and the Great Ocean Road are high demand holidaymaker areas seeing growth in B&B operations, buyer’s agent and propertybuyer.com.au CEO Rich Harvey said.

“Anything beachfront, on waterways or lakes, those sorts of areas where it’s a sense of ‘I feel like I’m on holiday,’ they are the ones where we have seen definitely more demand,” Mr Harvey said.

Tourism sector recovering post-Covid

The significant recovery in the tourism market post-pandemic is playing a key part in the desire of many people wanting to buy their own job, PropTrack economist Anne Flaherty said.

“It’s become relatively more expensive to travel overseas because the cost of flying has increased so much and this is inspiring more people to explore their own backyards,” Ms Flaherty said.

“At the same time, we are also seeing a significant rise in the number of overseas visitors coming to Australia, so that is going to further boost the tourism sector.”

Bed and breakfast accommodation is booming in popularity thanks to the post-Covid tourism sector recovery. Picture: Getty

The latest data from the Australian Bureau of Statistics shows that October and November saw the highest level of overseas travellers since the pandemic began.

“At the same time, overseas arrivals are actually still below their 2019 levels, so it’s definitely what you would still consider to be a recovering sector,” she said.

Colliers International head of hotels Australia Karen Wales said while travel bounced back strongly in 2022, driven by pent-up demand and the lifting of Covid restrictions, the large domestic tourism base has underpinned recovery of the sector.

“Australia’s hotel and tourism industry is evolving with new trends that have emerged post-Covid, including an emphasis on sustainability, new standards of luxury in city hotels, and the increasing growth of regional tourism,” she said.

Advice for wannabe B&B operators

The trick for any investor considering embarking on running a B&B is to go in with their eyes wide open, Mr Harvey said.

“It doesn’t always translate into a significant yield,” he said.

“You need to be careful and do a lot of research on the local area, local demand, and what the occupancy rates are for a B&B in the region.”

Research the area you’re considering buying into – including any seasonal trends. Picture: Getty

However, he said if a property is well-located and well-appointed, it could have good visitor demand for the long haul.

“I can definitely say just in terms of our buyer’s agency we have probably seen a 5% to 10% increase in enquiry for high yield holiday properties on what we’ve seen in previous years,” he said.

Gaining a good understanding of the local tourism market and the types of accommodation visitors prefer is important when considering buying and operating a B&B, Ms Flaherty said.

“I suggest looking at what the data is showing around visitor numbers, and taking seasonality into account as well,” she said.

“There are some regions that might see a spike in tourism during a particular period of the year, but then be really quiet throughout the rest.

“I think for people looking, or people who have purchased a property that they are going to convert into a B&B, factoring in lengthier renovation times and construction times are really important when working out the feasibility of the project.”

B&Bs up for grabs

There are a few properties currently on the market on realcommercial.com.au that offer the opportunity to snap up a slice of the B&B lifestyle.

The Spotted Chook

Described as a renowned and popular B&B, The Spotted Chook was established 23 years ago.

The Spotted Chook is a popular B&B property in Montville in Queensland. Picture: realcommercial.com.au

Located a short distance from the Queensland hinterland town of Montville, at 176 Western Avenue, the establishment comprises a four-bedroom owner’s residence, four guest rooms, and a self-contained one-bedroom cottage.

Mountain views are abundant from the top of the 2.5ha property, which also features lush garden areas, timber walkways, a horse paddock, a chicken house, as well as a creek which runs through the local rainforest.

It features four guest rooms and a one-bedroom cottage. Picture: realcommercial.com.au

It’s on the market for $3.25 million.

Werndee

Located 3km from Hobart’s CBD in Mount Stewart, this historic three-storey home at 1 Mortimer Avenue was built in 1903 for the Tasmanian premier at the time.

Werndee is an historic estate built for the then-Tasmanian Premier in 1903. Picture: realcommercial.com.au

In its listing, it states that it generates a substantial B&B income.

Features included sweeping city views, heritage listed trees, an aviary, fruit trees, ponds, outstanding timber finishes, and beautiful gardens across a 3485sqm landholding.