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Accommodation Squeeze Causes Sleepless Nights for NQ Contractors
20 May 2022 Charters Towers, Qld – Royal Private Hotel – Photo: Cameron Laird
The chronic shortage of quality accommodation across the Central and North Queensland resource sectors has led to some creative solutions by some contractors. Charters Towers is the latest town to benefit from the ongoing sector expansion, with one civil company completing a major refurbishment of a landmark pub for their own use. The iconic Royal Hotel dates back to 1888 and has been a centre figure in the town’s extensive history, from early gold rush to today’s military and mining boom.
Exact Civil Construction purchased the property in 2020 and then invested close to $700,000 to refurbish the rooms, restaurant and grounds to accommodate their own workforce.
“It may seem extreme but logistically and financially it makes perfect sense. The difference between winning and losing these multi-million dollar contracts is consistently coming down to who can attract and accommodate the skilled labour needed to complete the job.” said Ray White Commercial Director Chris Massie.
In addition to the existing mining and resource expansion, projects such as the Australia-Singapore Military Training Initiative (ASMTI) is set to have more contractors scrapping for accommodation in the region as the $2.25 billion joint venture in nearby Greenvale gathers momentum.
With all the refurbishment completed and their projects in full swing, Exact Civil are now offering the Royal Hotel for sale with themselves as the tenants of this secure, passive investment showing a 10% return. While the facility will be managed internally by the tenant on a full net lease, the sale includes all the furniture, improvements, licences, plant and equipment necessary, should the new owners wish to take a more active role in the operation of the hotel, bar and restaurant.
“Knowing that our position is secure with this accommodation as a home base is essential to our business, but accommodation is not our core business. We are happy paying rent so we can invest back into the machines we need to capitalise on the extensive opportunity pipeline we see in this region for years to come.” Said Troy Schmidt, Director of Exact Civil Construction.
For more information contact Chris Massie on 0412 490 840 or view the property here – https://raywhitecommercialncg.com/properties/commercial-for-sale/qld/charters-towers-city-4820/hotel-leisure/2727618
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