The surge in the number of grey nomad travellers in recent years has contributed heavily to the growing value of the remote businesses that cater to their needs.
A case in point is the Northern Territory’s Kulgera Roadhouse which is now on the market and is expected to sell for around $3.5 million. The Outback business located about 20 kilometres from the border with South Australia is set on almost 11 hectares of freehold land
Kelli Crouch from Resort Brokers Australia told Commercial Real Estate that the isolated nature of roadhouses often meant big profits.
“People come across the South Australian border, or are on route to tourist attractions such as Uluru or Kings Canyon, and they need to refuel,” she said. “There’s not much around except cattle stations, and roadhouses are a ‘one-stop shop’, with food, fuel, alcohol, caravanning and camping sites, motel accommodation and mechanical services – without any competition.”
Ms Crouch said that businesses like the one at Kulgera may not look fancy, but they made very good money.
“The last six months they’re continuing to show some really strong growth,” she told Commercial Real Estate. “A lot of that is being driven by increased caravan park numbers … we’ve got more and more caravans on the road, and camper trailers, more people travelling that way.”
The Kulgera Roadhouse has 55 cabins, motel rooms, units and powered sites, a pub, restaurant, general store and swimming pool. The roadhouse also has an Aboriginal art gallery, and is a subcontractor for AANT, NT roadside assistance.
Current owner-operator Chris Le Page said running Kulgera would suit those who are ‘up for a bit of adventure’, although he warned the temperatures there ranged from ‘cold and dry’ to ‘effing hot and dry’.
“It’s not the Hilton,” he said. “But then we don’t get complaints from the neighbours … because the closest one is 60 kilometres away.”
Great oasis on the way from NT to SA , had a very friendly welcome and ice cold beer when we stayed.
After leaving Cooper Pedy on route to Ayers Rock, we stopped at the Kulgera Pub for a cold beer and some lunch. When we left the girls were braless!!!