Read the Signs of Opportunity
- Posted By Andrew Morgan
When those who are entrenched within any industry are actively seeking to expand, it often signals strong underlying confidence. It suggests they’re seeing favourable trends, whether in demand, profitability, or long term growth potential. If one is positioning themselves in the accommodation industry, it could be a strategic moment to explore acquisition opportunities by seeking motels, caravan parks or accommodation assets that are undervalued or have untapped potential. Monitoring market signals such as rising interest from insiders may precede broader market movements, making this a potentially advantageous time to act. This situation offers opportunity for both buyers and active or non-active sellers.
Both the motel and caravan park industries over the past five years, have seen a wave of consolidation, in part by existing owners expanding their portfolios. This trend has been fuelled by the likes of strong domestic travel demand, especially post COVID, strategic geographic spread, allowing operators to capture travellers moving between regions and operational efficiencies from owning multiple businesses (e.g. shared marketing and centralised management). Now we are seeing experienced owners actively acquiring more properties. The goal is often to capture regional travel flows, branding and loyalty are becoming more important, with multi-site operators able to offer consistent experiences across locations and economies of scale are being realised in maintenance, staffing, and digital infrastructure. This kind of insider activity is a strong signal that those with the deepest understanding of the business are doubling down.
In recent years, the accommodation industry has undergone a quiet transformation one driven not by speculation lifestyle or employment, but by the strategic moves of those who know the business best. A significant number of accommodation businesses sold by QTHB over the past five years have gone to existing owners expanding their portfolios, increasing market share, and positioning themselves to capture the flow of regional travel.
This isn’t speculative investing, it’s a strategy. These are people who understand the margins, the guest expectations, and the operational levers that drive profitability.
The motel industry remains highly fragmented, offering significant opportunity for consolidation. Owners who can build a network of well run, strategically located businesses stand to benefit from cross property marketing and loyalty programs, shared staffing and maintenance resources and improved negotiating power with suppliers of all types.
Like any market, the motel industry is fluid. It experiences peaks and troughs, high and low occupancy periods, and shifting buyer/seller dynamics. But within these cycles lie opportunities, both for those already involved and those looking to enter. Having sold motels for the last 30 years, I’ve witnessed the industry evolve through many phases. Every region has had its moment in the sun at some stage. Ownership tenures have seen highs and lows also. At times, the market has favoured sellers, other times buyers. And often, it has offered opportunity to both depending on strategy, timing and vision.
One of the most consistent lessons learned from decades in the industry is this: discerning investors make their own opportunities. They identify undervalued assets, reposition properties, and build networks that defy broader market conditions. Whether the market is booming or quiet, there is always room for growth for those who know where to look and how to achieve it.
In the current motel market, excellent buying opportunities are difficult to find but are nevertheless available. Many prospective buyers we speak with are looking for motels with upside potential, businesses they can improve, reposition and grow. This is where information becomes critical. Understanding local economic shifts, tourism trends, and regional development plans can reveal properties with untapped value.
Whether it’s a region experiencing improved business conditions or one facing a temporary decline in demand, both scenarios can present strategic opportunities. Buy low, improve, and hold or sell high, remains a timeless principle, but only works when backed by solid, timely information.
When seasoned motel owners, operators, and investors actively pursue more opportunities, it’s a telling sign. These are individuals with firsthand knowledge of the business, its rhythms, its challenges, and potential. Their confidence in the sector speaks volumes. This surge in interest is fuelled by strong demand from the travelling market, which continues to seek reliable, well located accommodation across regional Australia. For those considering entering the motel industry, or expanding their current holdings, the message is clear that the time is right!
National or international economic turbulence often creates actual or perceived instability. This can make new investors hesitant to enter unfamiliar industries. But those already familiar with motels understand the long-term strength and resilience of the sector. Their appetite for quality acquisitions rarely wavers, regardless of what’s happening in the broader economy.
The fundamentals of a good quality motel business don’t change. And when one of them is lagging, it may present a greater opportunity. Savvy investors don’t see a problem, they see potential. They understand that value can be added, and that’s where the real upside lies.