Thursday, May 3rd, 2012 - Driftwood Mantaray
A new management rights company has been formed to transform an existing hotel in Port Douglas and eventually purchase the complex to produce a 300 percent plus increase in the company’s revenue.

Driftwood Mantaray Limited, headed by financial services professional Zac Sarnecki, has beenestablished to initially manage the Driftwood Mantaray property for management rights owners Latitude16.

Mr Sarnecki says the aim is to turn the property into themost sought after accommodation choice in town, while at thesame time maximising returns for investors.

“The opportunity currently exists to purchase the managementrights business from the parent company, which already achieves revenues in excess of $450,000 per annum,” Mr Sarnecki says

“Contracts have been signed both for the initial lease of the managementrights in the short term, as well as for the purchase in the mediumterm.

“The long term goal of the company is to purchaseoutright the underlying apartments, giving the property scopeto be converted into a freehold offering over a period of time.

“This strategy will facilitatea substantial increase in the businesses value to potentiallymore than double within the next five years.”

The Driftwood Mantaray is a 4-star holiday apartment complex centrally located in Port Douglas offering two and three bedroom holiday apartments.

The property includes areception area, reservations desk,tour booking facilities, two spas, BBQ areas, and pools, and on-sitemanagement.

It has recently signed a global distribution deal with Flight Centre to include the complex in a range of holiday recommendations when booking accommodation for clients from around the world.

Mr Sarnecki says the company’s business plan initially includes the purchase of themanagement rights, the owners unitand two apartments in the complex.

“Our next phase will be to purchase four apartments per year over the next four years and spend around$50,000 to renovate each of them,” Mr Sarnecki says.

“The refurbishmentprogram will see a 50 percent plus increase to the nightly tariff and will feed directly through to the bottomline, as the costs associated with this business are predominatelyfixed and are not tied to the tariff.

“By 2016 we plan to transform the entire complex to freehold and exit through a trade sale in around five years time.”

With forward bookings already up by 30 percent for the 2012 season when compared to the same time last last year, the business is poised tobenefit from the strong tourism market in Far North Queensland.

Mr Sarnecki and business partner Amanda Zsifko commenced managementof the complex for Latitude Resortsinearly 2011, increasing the revenue by over 45 percent in only nine months.

Driftwood Mantaray Limited’s marketstrategy seeks to optimise its primeadvantage of location, utilising moderntechnology to capture a larger slice of theholiday market.

For more information about opportunities in Driftwood Mantaray Limited visit www.assob.com.au/dml.

Contact Profile

Bruce Nelson

P: 0423 403 449
M: +61 (0) 423 403 449
W: www.assob.com.au/dml/

Keywords

Driftwood Mantaray, Port Douglas, Latitude16, Zac Sarnecki, holiday apartments

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