The Riverview Hotel, $1,750,000 FJD, or $880,000 USD
The Riverview Hotel is certainly an anomaly in the largest city on Fiji’s second largest island of Vanua Levu. “Potential” describes this hotel because at first glance you can see how a little renovation could go a long way. The location is where the most expensive hotel in town ought to be, given its located right on the river bend near down town. Being directly on the river provides for some excellent views and the water activity provides some interesting amusement. The potential for the hotel to engage in the business of a waterfront bar and restaurant is quite good considering this interesting setting and perhaps the only one of its kind in town. The owner has that covered and is currently remodelling the waterfront side of the hotel to create a good size restaurant and bar. Meanwhile, the management insists that the property actually earns a very good cash income from just the room rentals.
There are 15 regular rooms in two stories some with AC and with single, double and queen beds; some recently upgraded with private verandas and ensuite baths. There is a hostel dorm with 7 single beds which appeals to the backpackers who enjoy the camaraderie with shared, facilities including dining and kitchen. There is an apartment suite in the section adjoining the hostel. The large after deck in this area is another potentially popular area to spend an evening at the river’s bend.
It would appear that the low overhead, professed to be primarily electricity and water fits given not much has gone into the look of the place, particularly from the entrance, which is always the first impression. There are so many inexpensive ways to solve that with facades and décor one has to appreciate that like only a new owner might as the current has been reasonably content to accept trading ambiance for the saved cash. Room rates are still on par with some of the other hotels in town and, as well, this one offers short term room rentals, which can be as short as an hour or two. Therein explains some of the extraordinary per room income one wouldn’t expect at first glance. The long, narrow and secluded entrance drive with parking in the rear suits the discreet.
The property is leased on a 99-year Crown lease with about 50 years to go at an annual rate of just $60 USD per year, renewable anytime for the full 99 again. Normally there are three staff on duty at the nominal wages germane to Fiji.
Worthy of mention, the ride on the river to the ocean from the hotel is just about 10 minutes by motor boat. Boat hire and evening cruises could be another side business for the more ambitious.
Summary: The property is certainly unique and profitable with a location right on the coveted waterfront of the ..... river, as is, where is right now. There is a decent ROI on this purchase, even with the funky look. There is no website, no advertising, nothing but word of mouth and what people might share on their social webs that bring the customers in and repeatedly at that. The place is secluded and actually hard to find without explicit directions, yet near the downtown close enough to walk to town.
The building is a mix of concrete and timber construction with some of it renewed and some in the old style of the early 70’s when it was built. The fact that the property is on a land lease and needs a facelift affords one to be able to buy this for less than the cost of a much smaller home. One rood and 32 perches is how the property is surveyed, which seems to equate to less than a half acre in size. The place could be brought up a higher standard with cosmetics if one wanted to maintain a positive cash flow and still improve things, including the cash flow, with the emphasis on cash.
The purchase is open for discussion, so just get in touch.