Selling a Mixed Accommodation and Hospitality Business in Margaret River

Margaret River accommodation businesses do not always fit neatly into a single category.

A property may combine guest accommodation with a vineyard, cellar door, restaurant, café, wedding venue, farm operation, wellness offering or other visitor experience.

The region's official tourism material reflects this diversity, highlighting stays on vineyards and farms alongside hotels, resorts, holiday accommodation and other properties, as well as its strong food and wine offering.

When selling a mixed accommodation and hospitality business, the challenge is helping buyers understand how all the components fit together.

Map Every Part of the Business

Begin by identifying each operating activity.

For example:

Accommodation
Restaurant
Cellar door
Functions
Weddings
Tours
Retail sales
Wellness services
Agricultural operations.

The seller should be able to explain whether each activity is operated directly, leased to another business or provided under a different commercial arrangement.

Separate the Revenue Streams

A combined annual turnover figure may hide important information.

Where accounting records permit, identify revenue and direct operating costs by major activity.

This can help purchasers see whether the accommodation business is the primary profit generator or whether restaurant, event or other revenue is also significant.

Establish What Assets Belong to Each Operation

The sale may involve different equipment and inventory for each activity.

A restaurant could have commercial kitchen equipment.

A vineyard may have specialised plant.

A wedding operation may use furniture and event equipment.

A wellness business might rely on treatment equipment or fit-out.

Accurate asset schedules help buyers understand what is included.

Check Licences and Approvals

Mixed hospitality operations may involve multiple approvals, licences and permits.

These can differ depending on the activities conducted at the property.

Sellers should organise the current documentation and have professional advisers confirm which approvals relate to the land, which relate to the business and which may require action when ownership changes.

Do not assume an existing licence automatically transfers.

Document Events and Future Bookings

Margaret River has an active calendar of food, wine, arts and sporting events.

Individual accommodation and hospitality properties may also hold weddings, functions and private events.

Where future functions form part of the business, maintain an accurate schedule showing confirmed bookings, deposits and obligations.

An enquiry should not be presented as a confirmed event.

Understand Cross-Selling

One part of the operation may drive customers to another.

Restaurant guests might stay overnight.

Accommodation guests may purchase wine.

Wedding customers may book rooms.

If these relationships are important to the business, historical booking and accounting data can help demonstrate them.

Keep the Sale Story Understandable

The more diversified the business, the easier it is for a buyer to become overwhelmed by information.

A clear structure showing each operation, its assets, revenue and contractual framework can make the opportunity much easier to assess.

Norton’s Resort Brokers can assist Margaret River and South West accommodation owners with preparing complex hospitality assets for market and targeting buyers suited to the complete opportunity.

Frequently Asked Questions

Can a hotel, winery and restaurant be sold together?

Potentially, depending on ownership and business structure. The transaction needs to identify precisely which land, businesses, assets and rights are included.

Will all licences transfer automatically?

Not necessarily. Licensing and approval requirements should be checked with the relevant authority and professional advisers.

Should each part of the business have separate financial information?

Where possible, departmental or activity-based information can help buyers understand the operation more clearly.

Disclaimer: General information only. Licensing, planning, property, business and taxation requirements differ between assets. Obtain appropriate independent professional advice.