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So you want to buy a motel?

 

Motels are uniquely designed to target motorists and have a distinctively low-rise aesthetic. To purchase a motel outright and operate it yourself, would infer a situation known within the industry as ‘Freehold Going Concern’. This method of motel purchasing was particularly popular prior to the 1980s.

 

Nowadays, in Australia, people can purchase a long-term lease from a motel owner or landlord in a situation referred to as a ‘split’ motel. This motel leasing idea was pioneered in the 1980s by now managing director of Resort Brokers Australia, Ian Crooks.

 

How long is a motel lease?

 

The standard length of a lease in a split motel is approximately 30 years, made up of a ten-year baseline, plus multiple five-year extensions. Similar to a management rights agreement, the leasing party usually lives onsite and takes care of daily motel operations.

 

Who does what?

 

In both motel models, the landlord owner of the property takes care of all structural lot maintenance repairs. In a split motel, the landlord owner also receives annual rent from the leasing party. The rental agreement may include a review clause but usually increases by CPI each year.

 

The leasing party in a split motel runs the business side of things, doing all they can to increase profit-by-occupancy. They pay all operating fees and costs, including utilities. The owner becomes a passive investor in this agreement, responsible only for structural land/property maintenance.

 

Scroll down to find our current selection of Motels for Sale in Australia.

Showing 1 - 12 of 342


705ML - Popular Business near the River
New

KARUAHLeasehold $440,000

Motel
Net Income: -
Managers Estate: -
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Remuneration:

Tourism Brokers
  • Managers Bedrooms
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  • Pet Friendly
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284MI –Small Investment Only Country Motel
New
Exclusive

CASINOInvestment $940,000

Motel
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Tourism Brokers
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Near New Freehold Motel Showing 17% ROI QLD
New

CHARLEVILLE$2,990,000

Motel
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A B Brokers
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2275ML – New Lease with Genuine Opportunity to Grow
New
Exclusive

GLADSTONE CENTRALLeasehold $420,000

Motel
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Tourism Brokers
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2544MF - Freehold Opportunity with Great Potential
New

GLADSTONE CENTRALPrice on Application

Motel
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Tourism Brokers
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Rare Central Coast NSW Leasehold Motel – 30 Year Lease & Great ROI - 1P4162M
Exclusive

LONG JETTYLeasehold $820,000

Motel
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CRE Brokers
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Mountain View Motel - 1P4158M
Updated

CORRYONGLeasehold $585,000

Motel
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CRE Brokers
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FREEHOLD INVESTMENT MOTEL ON THE FRASER COAST
Exclusive

MARYBOROUGH$1,320,000

Motel
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A B Brokers
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2542ML - Ideal Leasehold Motel

KANIVALeasehold $130,000

Motel
Net Income: -
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Complex Units: -
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Remuneration:

Tourism Brokers
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667MF - A Quality Motel, Halfway Between Sydney and Adelaide

HAYFreehold $4,200,000

Motel
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Tourism Brokers
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Rare Tasmanian 26 unit freehold Motel, Exemplary Presentation, o/o $899,000, 17.77% ROI
Exclusive

QUEENSTOWN$899,000 offers over

Hotel, Motel
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Tasmanian Business & Property Sales
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Selling Well Below Replacement Value
Exclusive

QUEENSLAND$895,000 - Great Value at this Price - Ref AFB101

Motel
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QTHB
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