Target distribution yield
15%+ p.a.
Net of fees & costs
A 5-year investment in the Armidale Country Comfort Motel, a 43 room, 4 star motel in the heart of Armidale, NSW, combining established trading performance with conservative gearing.
Target distribution yield
Net of fees & costs
Distributions
Calculated daily
Investment term
From settlement date
Minimum investment
Wholesale / sophisticated investors only
Target gearing (LVR)
Loan-to-valuation ratio
Purchase price
Excludes acquisition costs
Offer amount
Total capital raise
Structure
Trustee: MotelCo Services Pty Ltd
The opportunity
The Armidale Motel Trust gives eligible wholesale investors an indirect interest in the Armidale Country Comfort Motel – a recently refurbished, strongly performing, regionally located motel in the heart of Armidale. The Trust targets an initial net cash distribution of 15%+ p.a., paid quarterly over a 5-year term, with the property held first and foremost to generate rental income.
The investment is supported by motel trading income, with a FY26 occupancy of 86% and an average daily rate of $171.
Proposed debt of $1.78 million represents 40% of the agreed purchase price, with a Year 1 projected interest cover ratio of 4.6x.
MotelCo and its directors propose to co-invest a minimum of 10% of total equity alongside other investors.
The asset
A 43 room, 4 star motel in the heart of Armidale. Recently refurbished, it offers studios and suites with contemporary fit-out, plus a high-quality restaurant and bar, lounge and conference facilities.
86 Barney Street, Armidale NSW 2350
43 · 2 levels · recently refurbished
Leasehold · Term certainty to 2048
4 star · Fully refurbished, including bathrooms
King suite
$4.45M
Purchase price
$2.36M
FY26 Revenue
$922,793
Forecast EBITDA
35%+
Forecast EBITDA Margin
86%
FY26
$171
Average Daily Rate FY26
$147
RevPar FY26
9.2 rating
Booking.com (2,000+ reviews)
WHY ARMIDALE
Armidale is the commercial, education and administrative hub of the New England Tablelands. It’s economy is supported by key sectors, including: education, healthcare, public administration, construction, agriculture, mining, professional services, retail and accommodation
King & Queen Suites
The University of New England, TAFE NSW, the Rural Medical School, a number of private schools and two major hospitals provide recurring professional and visitor demand.
Armidale is identified as the administrative centre of the New England Renewable Energy Zone, supporting a multi-year pipeline of construction and accommodation demand.
Armidale is strategically positioned approximately halfway between Sydney and Brisbane and is highly accessible via road, rail and regular flights from Sydney and Brisbane.
The New England region attracts visitors through sporting events, national parks, agritourism, cool-climate food and wine experiences, heritage and a strong events calendar.
WHY INVEST
FY26 revenue is $2.36 million, with 86% occupancy and a reported 41% annualised EBITDA margin.
The proposed $1.78 million loan equates to 40% LVR based on the agreed $4.45 million purchase price and supports a projected 4.6x interest cover ratio.
Room rate growth, new revenue streams and marketing initiatives.
The current lease expires on 16 September 2029 and includes three 5-year options plus one 4-year option, providing potential tenure through 2048.
MotelCo and its directors propose to contribute a minimum 10% of total equity.
The primary strategy is a sale after a target 5 year hold period.
About MotelCo
MotelCo is focused on acquiring and managing regional Australian motels for wholesale investors. It applies institutional discipline to acquisition due diligence, operational management, financial reporting, risk control and exit planning. AFSL coverage is held via Sumner Capital Pty Ltd, AFSL 466735, where required.
Jon has more than 30 years experience within the Australian property and funds management industry, having co-founded and operated Stonebridge Property Group, a national commercial real estate agency employing in excess of 70 staff nationwide.
Over the past 30 years, Kirby has held senior leadership roles in financial services. In these roles, Kirby has been responsible for executing acquisitions totalling more than A$1.8 billion and overseeing the management of A$4billion in assets across Australian and European markets.
MotelCo Pty Ltd
Investment Manager
AFSL 466735
AFSL
Min 10%
Co-investment
5 years
Target hold period
An investment in the Armidale Motel Trust carries risk, including the possible loss of some or all invested capital. It is a geared investment in a single leasehold motel business and is exposed to trading, occupancy, room-rate, operating-cost, staffing, lease, interest-rate, refinancing, property-condition and exit risks. Targets, forecasts and projected yields are not guarantees. This brochure is general information for wholesale investors only and is not personal financial advice. Prospective investors should read the final Information Memorandum in full and obtain independent financial, legal and tax advice before investing.
Register your interest
Complete the enquiry form to receive the Armidale Motel Trust investment materials. MotelCo will confirm wholesale investor eligibility before providing the full documentation.
Your details are kept confidential and used only to assess your eligibility and share fund information.