Mackay, QLD

This property faced varied legal compliance challenges when purchased for $8.75 million in 2019. There was need for a rebranding and renovation of public spaces to overhaul the complete look and feel.

Mandala’s Approach

The property had been run by developers for some years and enjoyed good revenue but little profitability. A disciplined approach to sales analysis, cost control (apprentices especially in wages and COGS) and risk management ensured that profitablity was increased from $300k to $800k within 3 months. The returns were further enhanced by rebranding and the purchase of the Management Rights properties next door.

Investing in the right areas

An additional 8 neighbouring management rights properties were purchased to enhance revenue, extract synergies, defend product and provide diversified/ higher income to investors.

Strict cost control processes were put in place, whilst investing in staff and training to ensure service was elevated and wages reduced.

New brand, new look

A $350,000 investment was made to renovate the lobby spaces creating a modern and open feel.

This property also underwent a full rebrand of the property and offering, repositioning as a Mantra to better capture the corporate and leisure markets visiting the region.

The dated reception area was renovated to improve first impressions whilst the guest rooms and restaurant were fully refurbished.

Our Results

A great result was achieved for this Central Queensland property. On top of a reduction of wages and overheads, profits lifted from $300,000 to $1.3 million, with an additional $200k profit generated from Management Rights. The capital value enhanced materially, likely double in equity value if sold. The property was protected from risk of non-complicance, with all defects resolved.

Contact Us

Mandala Hospitality Group offers a tailored approach to all clients. For more information on how we can support your needs please get in touch.