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Why Buy A Motel Lease? ( 21/07/2004 )
A motel lease is seen as an excellent option for operators to get into
the motel industry for a number of reasons, some of which include high
returns, saleability, low capital outlay and secure tenure.
A large number of motel buyers are now looking at motels for sale on a
lease basis, not as a stepping stone to get into a freehold, but as an
opportunity to make high profits and returns, over a shorter period of
time.
As a motel broker we are seeing the market for motel leases expanding
with demand growing, from first time motel operators looking to get
into the industry, to experienced operators who have owned and
operated both freehold motels and leasehold motels in the past.
Motel sales continue to rise as more and more people discover the
benefits that a motel lease can offer. Leases were historically
thought of as, not as secure as freeholds, which is correct from a
bricks and mortar point of view, however motel leases today are seen
by many as having just as good tenure as freehold. Even some of the
major banks treat a long term lease as being as good as freehold
tenure, and then finance motel leases accordingly.
For more details on motel leases contact our specialist Motel Broker
Andrew Morgan, Partner.
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