Those dusty remote Outback roadhouses that break a weary grey nomad’s journey may often look a little frayed around the edges … but many can be an absolute goldmine.
Three iconic sites – the Erldunda Roadhouse, Border Village Roadhouse, and Nullarbor Roadhouse – are being sold as a package with an eye-popping combined price tag of $30 million. The portfolio showed an overall net profit in 2017-2018 of $4.3 million, on a turnover of more than $20 million.
The three roadhouses could also be purchased individually, and are priced from $7.5 million to $14 million, depending on turnover and profit.
“Great outback assets can earn the owner an absolute motza,” Trudy Crooks from Resort Brokers Australia, told the Commercial Real Estate publications. “The returns are so much better than anything else you can buy, as visitors have to stop at these places for fuel and food and to sleep … there’s nowhere else, so no competition.”
Ms Crooks estimated the three properties had potential earnings growth of 10-15% and could be bought and run remotely by investors, or by an owner-occupier looking for a change of scenery.
The Erldunda Roadhouse located at the turnoff to Uluru in the Northern Territory, has a Shell roadhouse, 46 motel units, 96 caravan sites, a restaurant, bar and takeaway, phone and internet service, as well as a menagerie that includes 30 emus, countless kangaroos and a camel.
The other two are South Australian ‘neighbours’ on the Nullarbor despite being 200 kilometres apart. The Border Village Roadhouse has a BP station, 34 motel rooms, three backpacker rooms, five cabins, 24 caravan sites, a licensed restaurant and bar, convenience store and 10 gaming machines. The other, closer to Adelaide, is the remote Nullarbor Roadhouse, with 27 rooms, 74 caravan sites, an airstrip, fuel, restaurant and bar.
Try buying fuel at these places and you will see why they are so profitable
We had a chat to the managers at Nullarbor and people need to realize that it takes upwards of 500 litres a day just to keep the generators running so you can pump your fuel, buy a cold and have a hot meal.
In relation to the above comment (whinge) about fuel prices. Mate I dont know where you’re from but get real. Without these remote services in the outback you wouldnt be there or would struggle. AND your name is Riches…! Well how did you make your living…?
Do you realise the effort and cost it takes to provide a service to us remote travellers in this vast country…I take my hat of to them…and if they are making a living with a profit and employing many staff in in outback…well thats great my friend. Ive lived in the outback and remote areas in the Territory…so Ive got a good handle on this.
My advice to you is either stay at home or stick to the eastern seaboard…
I sat in a remote roadhouse once and watched a well to do couple come in and order a cask of wine…upon presentation and price their chins were raised with a comment..”my god thats too expensive” and walked out…the only ones that went without were them….worked out about three dollars a glass. I think they thought they were at their downtown swanky coastal club…and once again couldnt see the forest for the trees…to arrive home saving a few dollars, and like ignoring having a good time and enjoying the limited time in their lives and experiencing our great continent and outback country.
I agree Pat, we have used all three roadhouses during our travels for fuel, food and drinks and we were very pleased with what we got. Fuel prices in our view were very even considering where we were, no complaints from us, hope the next owners keep these places alive
I guess that fuel is part of the cost of travel, no matter where you have to refuel. Not to mention the cost of freight to get all the goods and services to their site.
Some one will snap these up, as we the travelling public rely on their and other like minded servo service etc etc.
Happy trails.
I cannot believe the ignorant supposition that Pat in the top end made about me . I have worked in the outback and elsewhere since the early sixties. 200 Mile north of Cook for one place. I do not live on the east coast and just because my name happens to be Riches I am on a pension and have supported country towns everywhere around Australia including Tasmania. At least I’m prepared to put my name to comments not hide behind woopwoop. When out back service stations claim the fuel costs are due to transport costs work it out yourself. If a tanker holds 80000 litres and drags a second trailer some one is making a killing. Back packers are the main stay of a lot of these outback places.
7 cents a litre profit based on figures we obtained looking at a roadhouse in the Eastern wheatbelt in WA. Decided against it.
We stayed in a motel unit at Erldunda last night as our caravan needs some tlc after coming across the outback way from Laverton. The only warning that I would give potential buyers is that the infrastructure is showing its age and a lot of money needs to be spent to bring it back up to scratch.
They deserve every dollar they make – there is nothing more exciting than breaking the monotony of a long trip by stopping at the next servo. Only certain people could hack the life and I take my hat off to them. A lonely and sometime scary lifestyle I would imagine.