Canberra investors list retro South Coast motel for sale

The group, which includes lawyers Yanna and Peter Dascarolis, two property developers, a builder and a real estate agent, purchased the first motel for $2.7 million in 2021.

After a full refurbishment, they relaunched the property at 222 Beach Road, Batehaven as The Isla in 2022.

The 18-room accommodation block was redesigned by Those Architects as a modern take on the seaside motels of the 1980s.

The property also includes a swimming pool, barbecue facilities, outdoor and indoor lounge areas, and car parking with charging stations for electric vehicles.

Ms Dascarolis said the project began during COVID lockdown when the group of friends were "all stuck at home and a bit bored".

"[We] saw this old dreary, brown '80s motel that had been on the market for quite a while and thought, 'How cool would it be if we had a nice hotel in the bay?'" she said.

Working with Canberra and Sydney suppliers, the group turned the old motel into a "nostalgic but modern Australian beach hotel", Ms Dascarolis said.

In 2023, the group purchased the neighbouring Kon Tiki Apartments, which includes seven holiday units.

The purchase price is unknown as the sale has not yet settled. Prior to the sale, the motel last changed hands in 2019 for $1.1 million.

The group of friends have decided to sell the properties to focus their efforts on a new project on the South Coast.

"We're all really passionate about design and placemaking and creating the businesses," Ms Dascarolis said.

"So we're in the process of moving on to another project at the moment and want to put all of our attention to that."

CBRE's Hayley Manvell and Tristan Cotchett are leading an expressions of interest campaign for the two hotels to be sold in one transaction.

Together the properties span about 3200 square metres of land.

An incoming purchaser could continue operating the two motels or look to develop on the land, subject to planning approval.

A drafted proposal for the site includes 58 apartments within a four-storey building and basement parking for 120 cars.

Mr Cotchett said he expected interest from developers, investors and national hotel groups.

"The rebound in the hotel sector has been quite strong post-COVID," he said.

"Vacant possession hotels have been quite sought after."