Looking for a Country Motel? Take a look at these 5 opportunities

Motel for sale in VIC

Investing in a motel in Australia offers a range of opportunities, from quaint country towns to bustling major cities. Your choice will depend on key factors such as location, size, and the type of ownership—whether you prefer the stability of freehold or the flexibility of leasehold. There are currently 360 Motels for Sale in Australia. 

With over $2 billion in accommodation and tourism businesses listed on Bsale, there are more than 1,000 opportunities available. The tourism industry contributes $36.5 billion to Australia’s GDP, employing 713,000 people and making up 1 in 7 businesses. Motels, typically smaller and more affordable than hotels, range from $120,000 to over $3 million. Currently, the total value of motels for sale in Australia is around $612 million, with an average price of $1.67 million. Most of these properties are located in country towns, where demand from travelers and seasonal workers sustains steady business.

 

Freehold vs Leasehold

 

When purchasing a motel, you might acquire the business as either a leasehold or freehold. When buying a freehold motel, you own both the business and the property, providing full control over operations and the potential for capital appreciation. The higher initial investment could be justified by long-term stability and the ability to modify or sell the property as you wish. You even have the option to sell the business down the track and collect rental income. 

In contrast, purchasing a leasehold motel generally involves a lower upfront cost, making it more accessible for investors with limited capital. However, leasehold ownership comes with lease terms that dictate your rights and may involve renewal risks. Additionally, you’ll have less control over the property itself, which can limit your ability to make significant modifications.

Your decision between freehold and leasehold should be guided by your budget, long-term investment goals, and the level of control you wish to have over the property.

 

Profitability of a Motel

 

The profitability of motels in Australia can vary significantly based on location, management, and market conditions. Typically, motels in high-demand areas, such as tourist hotspots or regions with a consistent influx of workers, tend to be more profitable. According to data from the Australian government and other reliable sources, the average gross operating profit margin for motels ranges between 20% to 35%, depending on factors like occupancy rates and operating efficiency.

 

Why Consider Country Town Motels

 

There has been an increase in demand for profitable country motels. With a strong property market and the chance to operate a profitable business, country motels are in demand. 

In many country towns across Australia, motels are often sustained by a steady influx of workers visiting the region. Government workers, fruit pickers, and other seasonal laboruers frequently require temporary accommodation, creating a consistent demand for motel rooms. This is particularly true in agricultural regions during harvest seasons when fruit pickers and other agricultural workers flood into these areas.

Additionally, infrastructure projects, such as road construction or mining activities, can bring in a significant number of government workers or contractors who require long-term stays. These guests often value the proximity of motels to their work sites, making location a critical factor in the success of such properties.

 

Spotlight: 5 Motels for Sale to Consider
 

We take a look at 5 motels that are currently for sale across Australia
 

 

1. Leasehold - Wentworth Grande Resort - Wentworth, NSW

• Price: $1,095,000
• Location: Wentworth, NSW
• Type: Leasehold
• Summary: This leasehold resort offers 50 rooms, a restaurant, and conference facilities, strategically located near popular tourist attractions.
• Link: View Listing

 

2. For Sale by Expressions of Interest - Griffith, NSW 

• Price: Expressions of Interest
• Location: Griffith, NSW
• Type: Freehold
• Summary: This freehold property in Griffith is ideal for investors looking to capitalize on regional tourism. It offers modern facilities in a strategic location, catering to both business and leisure travelers.
• Link: View Listing

 

3. Last Chance Charlie's - Ballarat, VIC

• Price: $750,000
• Location: Ballarat, VIC
• Type: Freehold
• Summary: A well-established freehold venue in historic Ballarat, this property has a strong local following, ideal for hospitality entrepreneurs.
• Link: View Listing

 

4. Rare Opportunity to Purchase Motel Freehold - Dalby, QLD

• Price: $2,700,000
• Location: Dalby, QLD
• Type: Freehold
• Summary: A rare freehold motel opportunity in Dalby, featuring 34 rooms, a manager's residence, and catering to both corporate and leisure markets.
• Link: View Listing

 

5. Four Corners Motel - Congupna, VIC

• Price: $450,000
• Location: Congupna, VIC
• Type: Freehold
• Summary: A small, easily managed freehold motel with 7 rooms, ideal for first-time buyers or owner-operators in a quiet regional location.
• Link: View Listing

 

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Buying a hotel or motel in Australia offers a variety of opportunities, from bustling city hotels to quaint country motels. By carefully considering factors like location, market trends, and the type of ownership, you can make an informed decision that aligns with your investment goals. Whether you’re catering to tourists, seasonal workers, or government employees, understanding the unique demands of your target market will be key to your success. If this your first time buying a business you can learn how to buy a business in our guide. 

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