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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 353


Twin City Motor Inn - 1P4289M
New
Exclusive

WODONGALeasehold $395,000

Motel
Restaurant Facilities: -
Liquor Licence: -
Restaurant: -

CRE Brokers
220MI - Solid Long Term Investment with a Proven Track Record - Fantastic Opportunity
New
Exclusive

BROKEN HILLInvestment $2,780,000

Motel
Restaurant Facilities: -
Liquor Licence: -
Restaurant: -

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

FORRESTERS BEACHFreehold Resort

Motel
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Liquor Licence: -
Restaurant: -

Tourism Brokers
2291ML - High Quality 4 Star Motel, Prime Location, Rare Opportunity in Brisbane
New

ASCOTLeasehold $960,000

Motel
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Liquor Licence: -
Restaurant: -

Tourism Brokers
2208ML - Affordable Starter Motel with Very Good Returns
New

OAKEYLeasehold $295,000

Motel
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Liquor Licence: -
Restaurant: -

Tourism Brokers
2222ML - Owners want to Retire, 33 unit Oceanfront Motel, Super Low Rent, Huge Net Profit
New

SWANSEALeasehold $799,000

Motel
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Restaurant: -

Tourism Brokers
2199MF - High Quality Freehold Motel with Excellent returns
New

OAKEYFreehold $899,000

Motel
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Liquor Licence: -
Restaurant: -

Tourism Brokers
FREEHOLD 20 ROOM MOTEL FOR SALE IN NSW FOR LESS THAN THE COST OF A HOUSE!

COOTAMUNDRA$650,000

Motel
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Liquor Licence: -
Restaurant: -

A B Brokers
SOUTHERN NSW FREEHOLD MOTEL FOR SALE.

COOMA$1,600,000

Motel
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Liquor Licence: -
Restaurant: -

A B Brokers
2556ML - Quality Starter Motel with Consistent Returns

WONDAILeasehold $462,000 WIWO

Motel
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Liquor Licence: -
Restaurant: -

Tourism Brokers
NSW COASTAL MOTEL OF 16 ROOMS SHOWING OVER 32% RETURN! LEASEHOLD FOR SALE

TAREE$440,000

Motel
Restaurant Facilities: -
Liquor Licence: -
Restaurant: -

A B Brokers
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