Selling a resort, hotel or accommodation business in the Whitsundays involves presenting more than income, rooms and facilities.

For properties operating in a cyclone-exposed coastal region, serious purchasers may also want to understand the asset's insurance position, maintenance history and approach to business continuity.

Sellers can prepare much of this information before a buyer begins due diligence.

Treat Insurance as a Due-Diligence Topic

Insurance should not be left until settlement is approaching.

The seller can assemble current policy information, renewal documentation and other relevant records for review through the appropriate confidential process.

Where the business has experienced previous insured events, the seller should obtain professional advice about the records and information that need to be provided.

Do not assume that a purchaser will automatically receive identical terms, premiums or coverage from an insurer.

The buyer needs to make its own enquiries.

Keep Major Repair Records Together

If a resort or accommodation property has undergone significant repair or rectification work, create a clear file.

Depending on the circumstances, this may include invoices, engineering reports, warranties, photographs, approvals and contractor documentation.

The aim is to provide a factual history rather than relying on memory during buyer enquiries.

Business Continuity Matters Too

Cyclone preparation is not only about the building.

Accommodation businesses also rely on staff, electricity, communications, booking systems, supplies and physical access.

A seller with an established continuity plan may be able to demonstrate how the business prepares for operational disruption.

Useful records can include emergency procedures, data backup arrangements, key contacts, supplier information and procedures for communicating with guests and staff.

Identify the Property's Actual Risk

The Whitsundays includes mainland, coastal and island accommodation assets with very different physical characteristics.

Sellers should avoid broad assumptions.

Flooding, storm tide, wind exposure, access and evacuation considerations can differ significantly between properties.

Relevant council mapping, professional reports and other property-specific information are more useful than generic statements.

Document Resilience Work

Where owners have invested in improvements intended to strengthen the property or improve continuity, document what was actually completed.

That might include building work, upgraded equipment, backup systems, drainage works, vegetation management or other measures appropriate to the site.

Only make claims that can be supported.

Give Buyers a Clearer Starting Point

No seller can remove every future weather risk.

The objective is to provide qualified buyers with organised information so they can undertake their own insurance, building, financial and operational due diligence.

For Whitsundays accommodation owners, starting this work before marketing can prevent important records from being assembled under pressure later.

Norton’s Resort Brokers can assist owners with the commercial preparation and marketing of resorts, hotels and accommodation businesses while working alongside the owner's legal, insurance and other professional advisers.

Frequently Asked Questions

When is cyclone season in the Whitsundays?

The official tropical cyclone season for the region runs from 1 November to 30 April.

Should I provide my insurance policy to a potential buyer?

Insurance information can form part of due diligence, but the timing and scope of disclosure should be discussed with the seller’s broker and professional advisers.

Can I tell a buyer the property will remain insurable after settlement?

Sellers should not make unsupported assurances about future insurance. Purchasers should obtain their own insurance advice and quotations.

Disclaimer: General information only. Insurance availability and policy coverage vary. Obtain independent insurance, legal, building, engineering, financial and other professional advice appropriate to the property.