Mulgrave, Victoria

Rare 26 Key Metropolitan Melbourne Motel Leasehold | Resort Brokers ID : LH009342

$2,100,000

Business Description

The Mulgrave Motel delivers a rare metropolitan Melbourne leasehold opportunity featuring 26 refurbished keys with 28 years remaining on a secure lease term.

Strategically positioned between Princess Highway and Springvale Road with exposure to approximately 100,000 vehicles daily, this turnkey operation generates a 20% return on investment whilst maintaining steady occupancy and increasing average daily rates.

Comprehensive renovations including all bathrooms, premium AH Beard Executive Supreme beds throughout, and fresh finishes ensure no immediate capital expenditure is required, whilst a 39.6kW solar system with battery storage substantially reduces ongoing utility costs.

Unlike competitor properties heavily dependent on online travel agencies, OTA commissions represent only 31.7% of total bookings, preserving profitability and operational control.

The business benefits from diverse revenue streams including corporate clients, government contracts, healthcare visitation and leisure travellers, supported by the highest guest satisfaction ratings in the area at 8.5/10 on Booking.com.

Additional income is generated through three coin-operated washers and dryers independent of room occupancy. With five consecutive five-year lease options, full staffing in place, and significant growth potential through healthcare precinct partnerships and enhanced marketing initiatives, this represents an exceptional metropolitan business combining security, performance and upside.

Contact Resort Brokers today to arrange a confidential inspection and review the comprehensive financial documentation.

- Rare 26-key metropolitan Melbourne leasehold business with high-traffic exposure to approximately 100,000 vehicles per day.
- Comprehensive refurbishment completed including all bathrooms, new beds, carpet and paint with no immediate capital expenditure required.
- Exceptional lease security with 28 years remaining on a 10-year term plus five consecutive five-year options.
- Occupancy has remained steady while average daily rates have increased, demonstrating pricing power and market strength.
- 39.6kW solar system with battery storage substantially reduces ongoing utility costs and improves net profit margins.
- Low reliance on expensive OTA commissions at only 31.7% of total bookings compared to industry average of 50-60%.
- Owned onsite coin laundry generating additional revenue independent of room occupancy.
- Highest-rated motel in the area with 8.5/10 on Booking.com and 8.6/10 on Expedia from over 1,000 combined reviews.
- Inspection by appointment only.
Date updated: 04 Oct 2026 23:00:13