Over the past couple of years in
particular there have been both large and small operators that have gone
to the trouble to refurbish their hotels.
Often these refurbishments have been
successful in increasing sales, yet have also increased overheads in a
higher proportion, thus actually seeing the value of the hotel decline
in value. Often this essential part of the equation can see not only
rises in expected overheads such as wages, and wages on-costs, but also
the costs such as insurance, in terms of workers compensation, public
liability and cover for theft and plant and equipment break down and
requirements for additional security measures in order to keep increases
to premiums to a minimum. This relates to pubs with T.O. of $20,000 p.w.
or those with T.O. of $300,000 p.w. and city or country and can see
fully renovated landmark hotels such as the Steyne Hotel Manly which
sold last week for a reported price of $50 Mil.
Bligh Williams
