March 08th, 2025

Buy a motel, build a motel, invest in motels, motel ownership
Thinking about investing in a motel? Here’s what you need to know to make a smart, confident decision—whether you’re chasing financial returns, lifestyle freedom, or both.

Why Motels? The Perks Motels attract investors for good reason:

• Live On-Site, Save More: Cut living costs with a built-in residence (though space may be tighter than a suburban home).
• Strong Cash Flow: Immediate income from Day 1, with most guests paying upfront via credit/EFTPOS.
• High ROI Potential: Earn 10–25%+ returns on investment, depending on location and operations.
• Flexible Ownership: Run it hands-on, hire a manager, or scale passively—you decide your involvement.
• Tax Advantages: Benefit from depreciation, deductions, and living-cost offsets.
• Resilient Demand: Motels consistently attract buyers, ensuring easier resale.

What Drives ROI?Your return hinges on:

1. Location: Coastal motels offer lifestyle appeal; inland ones often deliver higher ROI.
2. Condition: Well-maintained properties sell faster (but fixer-uppers can mean bigger gains).
3. Size: Smaller motels (<20 units) appeal to “mum and dad” buyers; larger ones attract investors.
4. Growth Potential: Underperforming? Fresh marketing or upgrades (e.g., adding a café) can boost value.

Freehold vs. Leasehold: Which Fits You?

• Freehold (own the land/building):
  • Pros: Build equity, no rent, long-term stability.
  • Cash Example: 550kdown→550kdown→1.4M property → ~$200k annual profit.
• Leasehold (rent the property):
  • Pros: Lower upfront cost, higher short-term ROI.
  • Cash Example: 550kdown→550kdown→1M lease → ~$300k annual profit.

Cut Through the Noise

• Online Reviews: Focus on patterns, not outliers. Nine 5-star reviews outweigh one rant.
• Due Diligence: Verify financials and occupancy rates. Experienced buyers often spot red flags fast.
• Inspections: Prioritize structural soundness over cosmetic flaws. Skip nitpicky reports unless major issues arise.

Smart Moves for Buyers

1. Work with Specialists: Use motel-savvy brokers, accountants, and lenders—they’ll save you time and money.
2. Finance Tips: Low interest rates make loans attractive, but partner with lenders who understand hospitality.
3. Think Long-Term: Even older motels can thrive with updates (e.g., renovated bathrooms, tech upgrades).

The Bottom LineA motel isn’t just a business—it’s a lifestyle. Whether you’re after coastal sunsets, inland ROI, or a mix of both, success starts with focusing on your goals and leaning on experts who know the industry.
Ready to dive deeper? Let’s chat about how to find (or build) the motel that fits your vision.

This guide simplifies complex decisions—but always tailor advice to your unique situation. 📢 Need expert help deciding? Contact SIRE Management Rights today at 📞 0404 331 310!

#buymotel #buildmotel #motelinvestment #motelbusiness #SIREmotelbrokers

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