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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 49 - 60 of 346


Yambil Inn Motel - 1P4092M
Exclusive

GRIFFITHLeasehold $400,000

Motel
Net Income: -
Managers Estate: -
Complex Units: -
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Remuneration:

CRE Brokers
  • Managers Bedrooms
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1630MI - Very Affordable Investment Motel!
Exclusive

COONABARABRANInvestment $1,400,000

Motel
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Tourism Brokers
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1256MF - Strong Freehold Motel in Regional City!

TAMWORTHFreehold $3,000,000

Motel
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Tourism Brokers
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1256ML - New Regional City Leasehold Motel!

TAMWORTHLeasehold $900,000

Motel
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Tourism Brokers
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1266MF - Be Your Own Boss! Freehold Motel!
Exclusive

TAMWORTHFreehold $940,000

Motel
Net Income: -
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Tourism Brokers
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2540MF - Superb Starter Freehold Motel Opportunity
Exclusive

BENARABYFreehold $1,250,000

Motel
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Tourism Brokers
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SOLD - 1P4093M
Exclusive

BALNARRINGAuction 25/7/2018 @ 1.00pm

Motel
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CRE Brokers
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752ML - Thriving Hunter Town
Exclusive

KURRI KURRILeasehold $420,000

Motel
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Tourism Brokers
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2050ML - Quality Motel Opportunity Awaits You

NANANGOLeasehold $550,000

Motel
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Tourism Brokers
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2156MI - Rare Investment Motel Opportunity!

BLACKWATERInvestment $2,700,000

Motel
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Tourism Brokers
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948MF - Outstanding Redevelopment Opportunity
Exclusive

MUSWELLBROOKFreehold POA

Motel
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Tourism Brokers
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2536MI - Four Star Investment Motel!

COBARInvestment $4,000,000

Motel
Net Income: -
Managers Estate: -
Complex Units: -
Letting Pool: -
Remuneration:

Tourism Brokers
  • Managers Bedrooms
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  • Pet Friendly
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