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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 25 - 36 of 314


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

WINGHAMLeasehold $680,000

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Tourism Brokers
2536MI - Four Star Investment Motel!

COBARInvestment $4,300,000

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Tourism Brokers
2555MF - Freehold Opportunity Not to be Missed

DALBYFreehold $3,265,000

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Tourism Brokers
The McIvor Motor Inn - 1P4309M

BENDIGOLeasehold $560,000

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CRE Brokers
1353MI - Outstanding Investment Opportunity in CBD Main Street

TUMUTInvestment $2,100,000

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Tourism Brokers
2489MF - AN AFFORDABLE FREEHOLD GEM, BIG INCOME, GREAT LIFESTYLE

PORT FAIRYFreehold $1,250,000

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Tourism Brokers
2396ML - When Only the BEST Motel will Do

TOOWOOMBA CITYLeasehold $995,000 + SAV

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Tourism Brokers
90ML - Country Leasehold Motel
Exclusive

BALRANALDLeasehold $375,000

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Tourism Brokers
Newport Homestay & Lodge - 1P4319M
Exclusive

NEWPORT

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CRE Brokers
2547ML - Location, Lifestyle, Opportunity

HERVEY BAYLeasehold $400,000

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Tourism Brokers
Lifestyle, Tourists & Award winning motel  - 1P4306
Exclusive

COWESLeasehold POA

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CRE Brokers
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