Thinking of Selling Your Motel?

Thinking of Selling Your Motel?

If you’ve been thinking about selling your motel, now could be a very good time to make the first move, as we are seeing a positive change in the market.

In the past, our high dollar discouraged many Australian residents from travelling domestically. These are, in fact, the travellers who make up the industry’s largest market.

As a result – and if you’re a motel owner, you may have experienced this – we saw a lot of price-based competition amongst operators, which negatively affected industry revenue.

However, that has changed, and more Australians are now choosing to holiday in their own country. Also, we are seeing increasing corporate travel activity. Both factors have a positive effect on the motel industry.

Another factor which will help you market your motel is that they tend to have lower barriers to entry, compared to other accommodation industries. For example, many motels are leasehold, which makes both the price and the risk more acceptable.

Is your motel leasehold? If it is, that’s a point that should be at the top of your marketing list, along with location, position, size, facilities and state of repair.


City, coast or country – all have their place, and offer different things to different buyers. Coast motels are more geared towards the tourist, while the city motel tends to be popular with corporate travellers, overnighters and tourists. The country motel is a good choice for both tourists, and families travelling to, for example, a wedding.


Do you have main street frontage, or are you hidden away? If you’re based in a town that sees a lot of passing traffic, a main street position is good for business. But there is also mileage in a hideaway motel when marketed correctly. For example, if you’re within an hour of a major city, you would be marketing yourself to the weekenders, seeking peaceful, private, romantic weekends away.


Small to medium-sized motels are popular with first-timers, and with those who like to give the business a more personal touch. While those keen to cater to the corporate traveller may wish for something bigger.


Does the motel have a commercial kitchen and a restaurant? Is the restaurant open to the public? Is it licensed? Do you have a pool or spa, BBQ areas, gym, reception/tour desk? These are all strong selling points. And what about room facilities? Air-conditioning? Fridge? TV? Private bathroom? Basically, tell your potential buyers about anything which you feel makes the motel more attractive to guests, and more profitable for owners.


Ideally, if you have been preparing for sale, you have carried out all the maintenance and repairs needed to make your motel an attractive investment. But as we all know, this isn’t always the case. Perhaps you are selling due to poor health, and because of your health, you’ve let the place go a bit. Don’t worry! Whilst this will usually affect price, there will still be a buyer out there for you.

While some buyers have the desire – and the budget – to purchase a gleaming, renovated motel, others are working with a more limited budget and will be happy to take on a tired building and pretty it up. Of course, this point is somewhat affected by whether this is a freehold or leasehold sale.

One thing is for sure, everybody likes to end up with a bit more cash in their pocket! For a buyer, that might mean getting a good deal; for the vendor, it could be paying NO commission. And this is possible when you market your motel yourself, with the help of a specialist Australian company, such as Coast to Coast Media.

If you’ve got a motel to sell, give them a call soon, and ensure you get the right prospects, the right buyer – and all the cash!

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