Motels

[ritchie]

anyone here run a motel before......or looked at leasing...would be interested in any info/advise anyone has

[fungus pudding]

anyone here run a motel before......or looked at leasing...would be interested in any info/advise anyone has

You'll get a much better return from heaps of other things, without the disadvantage of having to hang around cleaning toilets and other exciting activities for 24 hours a day for 365 days of the year.

[wns]

I haven't run or owned a motel, however I'd suggest you talk to some commercial real estate agents and / or business brokers and see what they've got on their books. I'm pretty sure you can buy them lease-hold or freehold with pros and cons to each.

For a start you could go go www.realcommercial.com.au or www.realcommercial.co.nz depending on where you live. Hope this helps.

[fungus pudding]

I haven't run or owned a motel, however I'd suggest you talk to some commercial real estate agents and / or business brokers and see what they've got on their books. I'm pretty sure you can buy them lease-hold or freehold with pros and cons to each.

For a start you could go go www.realcommercial.com.au or www.realcommercial.co.nz depending on where you live. Hope this helps.

Yes. Leases are readily available. Freehold properties less so. where a motel is sold including both the business and the land and buildings they are described as FHGC. (freehold going concern) The motel association run full day and two day seminars for those interested in the industry. Contact your local Motel Assn. to see if there is one in your area. Just be aware that nearly always the speakers will be selling one day....! Generally they're well worth attending.

[Year of the Tiger]

anyone here run a motel before......or looked at leasing...would be interested in any info/advise anyone has

I've had friends and rellies owning (leasehold) motels over the years. Never have I heard anyone tell me it was a "great investment". More like, "it's a 24/7 job where you have to be a cook (breakfasts), cleaner (daily cleaning of units), gardner (lawns, gardens, swimming pool), maintenance person (if you do your own r&m), peacemaker (dealing with rowdy groups of visitors), and a very nice smiling person at the end of the day...

So, if that's the sort of work you are looking for and the motel is in a good area (meaning regular and reliable occupancy) then maybe it is worth the effort.

YOTT

[Financially dependant]

anyone here run a motel before......or looked at leasing...would be interested in any info/advise anyone has

I seriously looked at buying Motels a year or so ago, they can be a very profitable business (once fixed costs are met), the return was in the business not so the land.. To many try to fleece the cash but that is just counter productive to a good business.
I was only interested in large complexes with over 10-15 units that can carry staff (cleaning team and reception shifts), there was no problem finding staff in Chch or other big centres.
I pulled out during due diligence (a couple of surprises) but was keen, experience is important (I had none) but it is only the passion of the owners that really can sell the rooms effectively (which is the make or break of a motel).
I looked at it as a business all but a 24 hour one but with staff you can get away often.
Get as much advice as possible and even work in one for a while first...

[minimoke]

When I find a good one I tend to use the same motel in the different cities I go to. Owners seem to have a short job expectancy - around two years max. And they aren’t easy to hunt out when they do leave. As Financially Dependent says – its the owners who pretty much kept me going back with their service.

[lakedaemonian]

I know some folks that own motels as well as holiday parks/camping grounds.

The motel owners I know have gotten out of the game directly by selling the leaseholds, but the holiday park/camping ground owners seem to be getting(and staying) stuck in.

From what I'm hearing, a well situated holiday park/camping ground seems to be a somewhat recession proof business thus far....everyone I know who owns one is still spending big....motel owners or leasehold owners.....not so much.

People still need to take a holiday and have a place to stay when traveling no matter how bad the economy gets...I think the best value option providers could do well going forward.

Personally, I wouldn't do it myself........it truly is 24/7 according to the folks I know doing it......until you can achieve scale or find cost effective relief workers.

Just my 0.02c

[ritchie]

cheers all