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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 13 - 24 of 349


647ML - Regional Leasehold Motel which Offers Plenty!
Exclusive

GUNNEDAHLeasehold $645,000

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

Tourism Brokers
2543MI-3 - Long Term Strategic Investment - Lakehouse

ROCKHAMPTON CITYInvestment $2,350,000

Motel
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Liquor Licence: -
Restaurant: -

Tourism Brokers
1276ML - A Huge Opportunity in All Regards!

TAMWORTHLeasehold $1,450,000

Motel
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Restaurant: -

Tourism Brokers
1203ML – Quality Leasehold at 36% ROI

GRAFTONLeasehold $540,000

Motel
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Tourism Brokers
2543MF - Near New Freehold Money Maker

ROCKHAMPTON CITYFreehold $13,000,000

Motel
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Tourism Brokers
2543MI-2 - Long Term Strategic Investment - Conference Centre

ROCKHAMPTON CITYInvestment $2,650,000

Motel
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Tourism Brokers
2550MF - Money Maker at Half the Replacement Price

BLACKWATERFreehold $5,500,000

Motel
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Tourism Brokers
2550ML - Money Maker with 30 year New Lease

BLACKWATERLeasehold $1,157,000

Motel
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Tourism Brokers
1546ML - The Hunter’s on The Move Again!
Exclusive

MUSWELLBROOKLeasehold $420,000

Motel
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Tourism Brokers
2545MF - Substantial Freehold, Multiple Income Streams

BATHURSTFreehold $7,900,000

Motel
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Tourism Brokers
2552MF - Cheap As Chips, Freehold Motel & Caravan Park

KILLARNEYFreehold $610,000 neg.

Motel
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Restaurant: -

Tourism Brokers
1413ML - Wagga Wagga Heartland, Walk to the CBD

WAGGA WAGGALeasehold $1,050,000

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

Tourism Brokers
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