4 Key Points to Consider When Buying Existing Motels for a Business

Motel Rooms

Many business opportunities exist in the real estate industry and one of them is investing in a motel business. The advantage of this type of business is you need not build a new motel; you can buy an existing one.

A motel business will prove to be profitable, in face of new statistics regarding business travels. The Australian Bureau of Statistics revealed that of more than 17.7 million vehicles registered in Australia, 18 percent were for out-of-town business trips. This means that at least 3.1 million individuals go on a business trip annually and they are potential motel clients. With the volume of people travelling by road to seek business deals, a motel business will be just perfect.

If you are keen on pursuing this business venture, you have to follow certain requisites to ensure its success. Here are some key points to consider for starters:


Obviously, this is the first thing you should seriously consider. People who go out of town for business will be quite busy and they will not like their schedules hampered. They will rather stay in relatively simpler Melbourne motels located near their business meetings than in elegant inns in the outskirts. So if you are looking to buy a motel, select one that is situated in the city and highly accessible.

State of the Motel

As a prospective buyer, you need to check the present state of the motel before buying it. Look for leakage or clogs, especially in the roof and plumbing system. These two things are often a sign of disrepair and it is important that your motel purchase is in tip-top condition if you want to attract the right business. Inspect the place for any pest infestation, as well.

Property Sale or Management Rights

In some cases, you do not have to buy the property. You may opt to buy the management rights alone. What you will purchase is the right to operate the motel for a specific period. During this time, you can lease the place to tenants and collect payment from them.

Managing the Motel

If you have no experience in running a motel, you can always hire a resident manager who will operate the motel for you. According to Owners Corporation Networks, the tasks of a resident manager include assisting you with the day-to-day motel operation. In exchange, you can let him or her stay in one of the rooms and earn a commission from the rent collection.

Investing in a motel business is a financially rewarding endeavour which has benefited a lot of business people. As long as you handle operations in an efficient manner, this investment will be financially rewarding.