Dramatic turnaround in trust’s fortunes

After years of disappointing returns in the late 2000s, the Oamaru Licensing Trust has reported a strong financial position — and in the coming year the trust will focus on upgrading one of its major assets.

Chairman Ali Brosnan and general manager Cathy Maaka updated the Waitaki District Council on the trust’s plans at a public forum before a council meeting this week — it was the first time the trust had updated the council at a public meeting in at least 15 years.

The Brydone Hotel — the largest accommodation provider in Oamaru — "needs a bit of love and care and attention", Mr Brosnan told the council.

"We’re aware it needs a bucketload of money spent on it."

Upgrading the 50-room hotel would be a part of  ‘‘future proofing the organisation’’.

The trust had been recovering since the controversial development of the Northstar Motel in 2008, Ms Maaka said.

A 40-year-old building  was gutted and renovated and the Northstar restaurant and bar opened on December 1, 2008, and motel units were  opened on April 1, 2009, at the height of the global financial crisis.

The hospitality industry suffered for "a couple of years", Ms Maaka said.

Mr Brosnan said the period since the Northstar was built had been "interesting".

In 2010, the trust posted a $511,607 loss and the Waitaki Ratepayers and Concerned Citizens Association called for its assets to be sold.

That year the trust made four people redundant, closed its head office and its wholesale liquor operation.

Audit New Zealand identified the trust as  "at risk" in 2014.

In 2013 the trust’s equity was roughly $1,600,000.

But in 2016 the trust had an equity of about $2,400,000, Mr Brosnan said.

The trust posted an after-tax surplus of $330,882 this year, more than tripling last year’s surplus.

At the peak of the tourist season the trust employs 135 staff in 84 full-time equivalent positions.

After streamlining the trust’s operations and putting an end to "underselling" their product, the accommodation had begun to pay dividends, Ms Maaka said.

At the time of the development the average occupancy rate for Oamaru was about 47%.

But, like other occupancy providers in Oamaru, the Northstar and the Brydone were experiencing high yearly average occupancy rates, at 84% and 76%  respectively.

Without motel units,  the restaurant and bar could afford to open only on Thursdays, Fridays and Saturdays.

hamish.maclean@odt.co.nz

Add a Comment