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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 328


278MF - Take This Freehold Motel to the Bank with Confidence - AUCTION
New

CANOWINDRAAUCTION

Motel
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Tourism Brokers
1288ML - Mid North Coast 28 Room Leasehold
New

TAREELeasehold $650,000

Motel
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Tourism Brokers
1585MF - Renovated Freehold Motel
New
Exclusive

GRAFTONFreehold $1,798,000

Motel
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Tourism Brokers
1044ML - Proven Money Maker, Chance to Reposition
New
Exclusive

NYNGANLeasehold $495,000

Motel
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Tourism Brokers
19ML - Money Earner in Albury - Collect the Cash

ALBURYLeasehold $795,000

Motel
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Tourism Brokers
NEW ENGLAND LEASEHOLD MOTEL, GREAT ENTRY PROPERTY FOR SALE.

MUSWELLBROOK$420,000

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A B Brokers
409MF - Rare Freehold Priced Right

COWRAFreehold $1,675,000

Motel
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Tourism Brokers
530MF - Rare Central Coast Property on the Market
Exclusive

GOSFORDEOI over $6,600,000

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Tourism Brokers
FULLY RENOVATED LEASEHOLD MOTEL, 17 ROOMS ON THE NSW CENTRAL COAST. NEW 30 YEAR LEASE.

LONG JETTY$795,000

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A B Brokers
Great leasehold motel with 27 years on lease.  24 rooms with great occupancy.

RICHMOND HILL$320,000

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A B Brokers
1484ML - Modern Country Living with Golf Course Views
Updated

WINGHAMLeasehold $680,000

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Tourism Brokers
2536MI - Four Star Investment Motel!

COBARInvestment $4,300,000

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Tourism Brokers
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