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Another interesting and exciting year is done, and it has gone by in a flash. It certainly doesn’t feel like a year since the last motel market wrap up. So how did the motel and accommodation industry and market perform throughout 2025? If I had to sum up the year in one word I would go with… ...
Read MorePrice determination is the interaction between the availability of a product (supply) and the desire for it (demand). Laissez-faire economics is a market with minimal government intervention, supply and demand naturally regulate the prices. Australia operates under this system most of the time,...
Read MoreThere’s a phrase I never want to hear or say again because it is easy to fall into its trap. It’s a phrase that sounds harmless, even rational, but often, it’s a subtle form of self-sabotage. You’ve heard it before. You’ve probably said it yourself: “I would love to do that… maybe later.” This ...
Read MoreWhen 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 i...
Read MoreI believe the word goodwill has two primary meanings. One is the goodwill we extend to each other being acts of kindness, empathy, and respect. The other is that which forms part of a business’ value, an intangible asset built through relationships, reputation, belief and trust. In the accommo...
Read MoreFinding a passive investment motel with a lease in place has for many felt like looking for a needle in a haystack, and there's a good reason for this. Motels under lease have become popular passive investments and are tightly held for many key reasons:- 1. Predictable Income StreamWhen a motel...
Read MoreTo save significant time, money, and stress, it is essential to set an accurate price for a motel or accommodation business from the outset—rather than pursuing unrealistic expectations. This can be achieved by gathering reliable data, seeking expert advice, and approaching the decision objectiv...
Read MoreI recently stayed at a motel I had not stayed at for over 20 years. I thought it would be good to try an alternative and to have a look around. One of the other reasons I stayed there was that it was one of the few in town that still had a restaurant, and I knew I wouldn’t feel like getting bac...
Read MoreAfter twenty-nine years of selling motels and therefore staying in them regularly, you tend to form an opinion based on your own preferences, as to what makes a good motel from a guest’s point of view. The way I like to look at it is to break down the features of any given motel and see how it s...
Read MoreA new ownership or operator to any business or even a home for that matter brings with it a new level of enthusiasm. A want or urge to improve something, work hard on it and even just change it for the sake of change, to put one’s own touch to it. This can be said for a lot of other things in l...
Read MoreIn this final instalment of the three part series “Selling”, we look at the final stage of the process. The first issue titled “Selling – Enquiry through to Inspection” discussed in brief, the initial part of the selling process with a prospective buyer through to completing the site inspection....
Read MoreLast issue we kicked off 2025 with the first of a three part “Selling” series of articles. The first was titled “Selling – Enquiry through to Inspection” which discussed in brief, the initial part of the selling process with a prospective buyer through to completing the physical site inspection....
Read MoreThe sale of any business is a process. Some transactions involve more detail and difficulty than others and therefore require a lot more involvement and management. To start the new year off, in this issue we consider the start of the sale process of a motel, from the initial enquiry or introdu...
Read MoreThe first step in commencing the process of buying a motel must be determining what is going to work for you. The size of the motel, the tenure, the budget, the location, position, the clientele, and the way the business is going to be operated. In buying any business it is most likely a financ...
Read MoreI feel like I say it every year at about this time and that is, how quickly the year went! The second half of 2024 seemed to just disappear before I knew it. Time flies when your having fun! What a busy year it has been. Motels have been, as they say, “the flavour of the month”. Having said ...
Read MoreThose genuinely looking to acquire an accommodation business or property at present know exactly how difficult it is to find good opportunities that are available. There is strong demand from the buying market to acquire motels and caravan parks, with limited supply available. Supply and demand...
Read MoreAnyone involved in some way in the accommodation industry enjoys hearing stories of high occupancy rates being achieved. So, it stands to reason that when considering a motel investment, occupancy rate seems like a logical question to ask about. The perception is that it reflects how well the b...
Read MoreThere are many good reasons why motels are an excellent investment option for those looking to buy a business. This edition is not about all those good reasons, but simply one. It’s not a high return on investment or lifestyle reason that is often head of the list, but one that makes quick deci...
Read MoreThe purchase of any business including accommodation businesses is predominantly a financial decision as opposed to an emotive one. When buying a house, the decision is more likely the opposite, largely emotive rather than financial. Yes, there is a hope that the value of the property will appr...
Read MoreSome like to have a “little flutter” now and then and others like to have a “serious punt”. Whether it be a high stakes game of poker or flipping a coin to determine who is right or wrong. Either way, it’s a gamble. One possible definition of the word gamble could be, not preparing a business ...
Read MoreThe 2024 mid year market update is a bit like Christmas in July if you are wanting to sell an accommodation business such as a motel or caravan park. To clarify, there has been a marked increase in those contacting me enquiring on the state of the motel, caravan park and accommodation industry m...
Read MoreAs a flashback to last month’s issue, we examined that the day to day operations of every business can easily consume most of the owner or manager’s time. When trading is strong, operating costs are not an issue and are far from the forefront of the mind. However, when trading declines, the opp...
Read MoreThere is an old saying, with multiple versions available, that goes something like this, “if you take care of the top line, the bottom line will take care of itself”. The meaning here is that if you focus your attention on a business’ Sales Revenue, the Net Profit will automatically be there. E...
Read MoreAnyone who has ever needed one, knows good quality motel managers are a commodity that are highly sort after. The value of a good manager to the performance of any motel business should never be downplayed. Business owners often choose not to operate their own motels for many different reasons,...
Read MoreIt’s the dream of everyone to get a good night’s sleep and therefore be fresh for the new day ahead. For some its easy, not so for others. Travelling is often a time that people struggle to get a good night’s sleep. Whether it’s outside noise, thinking about the day gone or the day ahead, bein...
Read MorePeople often focus on the negative or pessimistic side of things and in this case that would be selling in a quiet market. However, let’s take a brief look at the more positive and optimistic side of things, selling in a buoyant or busy market.Markets fluctuate up and down most of the time. The...
Read MoreWhen it’s time to sell, what is a reasonable timeframe to expect a motel to sell within? The variables that go into determining the answer are many, however price and market sentiment are two of the major contributors that play a role in how long the process may take. However, the old saying, “...
Read MoreWhen considering any business acquisition there are always buying motives that are particular to each individual, with different matters and items more important to one person over another. When the most suitable motel is being considered, it will be a combination of many factors that will come t...
Read MoreIt’s that time of the year again where we take a moment to look back on how the motel and accommodation market performed throughout the course of the year. If there is one thing we can say year on year is, how quickly the year went. I guess if there is a second thing we say, it is that markets ...
Read MoreAny business survives (or thrives) when it produces a strong profit. Whether it’s a sole trading hairdresser or a listed public company such as one of the Big Four banks. The fundamentals are the same, produce a strong profit and those profits ensure the survival of that business and are then s...
Read MoreThere is not a week that goes by that I am not asked the question, where is the best place to buy a motel? Whether it be the broader question of inland, coastal, north, south, or the more specific question of which is the best town to buy a motel? Next is, what is the best position to have a mo...
Read MoreWith the sale of any business all the assets owned by the business are transferred to the buyer at settlement. One of the most important assets of any business is the employees. At the best of times the importance of good quality employees is something that cannot be overlooked in any business,...
Read MoreIt was only a short fourteen months ago that I wrote about how there were many excellent buying opportunities available in the motel and accommodation sector and how the demand and the appetite from those already in the industry was very strong. At that time there were many good quality motels a...
Read MoreA part of the purchase process of a motel that commences well before settlement date includes laying out a plan for the future. This may not necessarily be written down, but can be simply a consideration of the future even before signing on the bottom line. It may be a few dot points or ideas t...
Read MoreThere must be thousands of examples over the years that I have witnessed whilst waiting in a motel reception for a guest to check in or out. Examples of customers walking out happy with a smile on their face. I cannot help but think, another satisfies customer, they will be back again. Whether...
Read MoreTo quote the late Bruce Lee, martial artist, actor philosopher and filmmaker, “Empty your mind. Be formless. Shapeless. Like water. You put water into a cup, it becomes the cup. You put water into a bottle, it becomes the bottle. You put water in a teapot, it becomes the teapot. Water can fl...
Read MoreIf a motels average occupancy rate is sitting at 50% there is clearly upside opportunity available. Half the rooms are not being filled over the course of a year. How do we find potential guests to fill these unoccupied units? By throwing unlimited funds into advertising? Absolutely NOT! Mark...
Read MoreIt doesn’t matter what is being sold, we want to know what it is worth. After listening to the advice of others and completing one’s own research, if the correct decision to sell is going to be made, then one needs to determine for themselves what they realistically believe the motel business is...
Read MoreWhether we a talking about a Lessee or Lessor, having a long term lease in place is generally beneficial for all involved. Long term leases provide security and surety of occupation for one, and well, the same for the other. What is a long term lease, and why in addition to the above, is it ben...
Read MoreWhen it comes to the operation of any business, being able to access financial data is paramount. How can a business owner know what is happening within the business if information is not available or it is unknown how to access it from the system? It may be the case where the system being used...
Read MoreFlexibility in the workplace has changed over recent years and may well change again over the next couple of years. Whether the “workplace” (in general terms) tightens or loosens its stance on flexibility, either with flexible hours or a flexible location to work from, motels have always offered...
Read MoreWell how quickly 2022 has come and gone! As always at times everything was hustle and bustle and at other times it was quiet and everything in between! Each year we do a short but direct examination of how the motel and accommodation industry in general performed throughout the past 12 months f...
Read MoreThere are many reasons why leasehold motel tenure has been such a successful business option for thousands of everyday people for the past 35 years or more. Although around well beforehand, this business model gained much popularity and interest from those already within the industry and then ne...
Read MoreMany businesses across all industries have struggled with changes that they have been forced to incur over the past couple of years. Changes in the way they do business, changes with demand for their product or service, changes in dealing with their employees and changes with their clientele. ...
Read MoreIt seems appropriate based on the strength of the current market for this tenure of motel ownership to revisit it and consider the many reasons for the current and continued strong attraction in owning and operating a freehold motel. Not having to answer to anyone or having anyone else involved ...
Read MoreWhy do investors get together to form an ownership structure such as a partnership? Why do they not just go out and do it themselves? The pooling of resources is one answer to these questions, being one of the main benefits of the partnership arrangement. These resources referred to are not...
Read MoreTrying to find the elusive passive investment motel that is for sale is no easy feat. So why are motels with a lease in place so popular as passive investments? Well, over 30 years ago the benefits that a motel under lease offered really started to be identified. Those in the industry could se...
Read MoreWhen I hear the word goodwill, I think of two things, goodwill towards your fellow man and the goodwill component of a business. Both are directly related to the other. Building the goodwill of a business creates a feeling of positivity for all involved. It involves building relationships that...
Read MoreProfit may not be what a business is all about, but it is what it survives upon. No profit means no business. It simply cannot survive. Any business owner or operator knows what is needed to achieve a profit beyond the breakeven point. When a product or service is offered for sale, what it co...
Read MoreThis has never been a phrase I have felt the need to use in the past, however as time goes on I have found that one can find themselves thinking it and it is an easy trap to fall into. It is a very common phrase that people often use simply as an excuse. A reason to talk themselves out of doing...
Read MoreWhether buying or selling a business of any kind, the most important matter that takes precedence over all else, is the financial data. Yes, physical presentation and everything else play a role, but the first consideration is always, how the financial data looks. Historical data is what first ...
Read MoreThere are always a lot of questions that need to be answered when considering buying a business. The answers are generally revealed throughout the process of looking for and finding the right business to suit one’s circumstances. The search for the right motel includes considering the positives...
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