Buy an Established Motel for Sale and Make More Money
See you later covid restrictions - hello adventure and travel!
Aussies have never been so excited to leave their homes and experience what the rest of Australia has to offer. The tourism business is picking up and we are seeing some very profitable motels for sale being listed on the market.
There are hundreds of motels for sale, especially in country towns of Australia. One of the biggest issues is they have been established 20 plus years and need some work. It doesn't mean they can't be profitable, it just requires some ingenuity and thinking outside the box. When you buy a motel for sale, you should always be looking at ways to improve it. What can be done to make it better!
We take a look at how you can buy a motel for sale, invest some energy and make it even more profitable!
-
Rewards Program
People often wonder what the difference is between a motel and a hotel. In Australia the difference is often seen in what is offered. A motel typically does not have room service, is a single level building (though not always) and the service offered is considered a bit less then a hotel - so the price per night is a bit lower.
One key element that makes a motel for sale profitable is the clientele. Who is actually staying at a motel?
You will find in regional towns that motels’ income is often supported by workers. A lot of trades people, sales people and regular business travelers will stay at a motel. This is usually due to location and the ability to easily park. Country motels often have the benefit of being able to park right in front of your room!
To reap the benefits of this clientele and to make more money from the motel for sale, you could consider a rewards program. Valuing your regular clientele or businesses that frequent your establishment is a great way to have them coming back again and again. You could offer free breakfast, a discount after a certain number of nights, or offer a free night after the business has booked 10 nights. You want to build that loyalty with your customers.
It is often said, it's easier to make money from your existing clients, then to be continually marketing and trying to capture more people, which brings to the next point.
-
Offer More
It's time motels started to think about offering allied services. Especially if you are buying a motel for sale, you have fresh eyes and can see what else could be offered. Some additional services that a motel could offer to increase its value and profitability:
-
Car Washing
-
BBQ or Buffet Style Dinners
-
Laundromat Services
-
Co-Working Spaces so people can work remotely
-
Pet friendly and building a fenced area for dogs to exercise
-
Installing a swimming pool or spa
-
Work with local businesses to offer discounts on attractions such as horse riding, day spas, beauty, retail etc.
People staying at your motel want convenience. What can you offer the people staying that will make it even more convenient and enjoyable for them? When people look at business sales they dont always look at the potential of the business they are buying, sometimes they just look at how to continue running it on the same level.
-
Renovation
When you hear the word renovation, you often think “oh no it's going to cost me more”. Well in theory yes, but it can also make you more money. Unfortunately a lot of the motels for sale are stuck in the 70s era. They have old outdated bathrooms. Does it require a full renovation? Well you will need to view each individual motel for sale to really see the extent of the bathrooms.
But if you were to fix up the bathrooms, add fresh flooring, already you can increase your nightly room rate. Commercial hot water options have changed since the original build, you can save a small fortune on power and water bills by installing an energy efficient commercial hot water system. It's all about running the numbers. How much you need to invest into the motel for sale, to make it bring in more money and be more profitable. Buying commercial property in Queensland?
Remember that the Queensland tourism property market remains high, and is continuing to grow despite instability in other markets. If you’re chasing those premium Barrier Reef tourism dollars, it’s vital to present an “instaworthy” property.
-
Fix that Bedding!
So many country hotels still have the floral bedding or cover, many people turn up their noses to this, it's time to take that off and invest in white linens that can be washed and bleached. Get rid of the old bedding, donate it to a pet shelter or somewhere that can use it and start fresh.
No one wants to stay in a motel that has bed stains or a strange smell. Invest some money into the linen and bedding and make it more enjoyable. You could even approach a laundromat and work on a deal to hire the bedding and they will do the washing - this saves you from having to find that initial money to outlay and you can just have a monthly maintenance expense. Talk with other local businesses and see what you can work out.
-
Hello Socials
Social media loves to grasp onto projects. Share what you are doing! If you are buying a motel for sale, take people along for the ride, show them the renovations or what you are doing to update the motel you just bought. It's a great way to get eyes on your premises and spread the word on what you are doing.
-
Review, Review, Reviews!
Don't be afraid to ask visitors for a review. Whichever platform you prefer. Booking.com, Google, TripAdvisor, Facebook. Collect reviews. It can increase your brand awareness, make you appear higher in Google search reviews and ultimately increase the revenue of the business (if they are good reviews!). Don't be afraid to ask. Many motel owners in the past were too shy to be this direct - but you shouldn't be. Ask when they are checking in. They can do it when they get to the room and the memory is fresh in their mind!
-
Free Wifi
Never underestimate the power of free wifi. People don't like to pay. People traveling and staying at motels want to connect whether for work or personal reasons. So offer free wifi. It will make a patron choose your motel over a hotel or competitor.
Final Thoughts
You can make a lot of money when you buy a motel for sale and make it even better. An established motel is much easier to grow than starting from scratch. You have established clients, the building is built and you have financials to go off. Don't be afraid to innovate and change when buying a motel for sale. It will help you increase your profit and that is the ultimate goal of most businesses.
