3 Essential Factors to Study Before Buying Your Motel Business

aged and worn vintage photo of motel sign palm trees

Purchasing motels and other low-budget hospitality structure and services can be more advantageous than constructing a new building from scratch. Time and budget considerations do come into play, not to mention the period you’ll need to wait before being able to use the new structure for commercial use.

It does matter though that you find the right motel to acquire, so do take note of the following points and features that you need to consider when making that final selection.

Renovations and Development

It would be essential to think about the cost of improving the property since you are buying a previously-owned building. You may need to inspect the whole motel for structural strength and the potential upgrades that will make it inspection and customer worthy in NZ.

Most likely, bathroom wall panels should be improved; carpeting replaced and made more environmentally-friendly with LED lighting and water-saving shower heads. These upgrades will target both the safety and aesthetic aspects of the place, which will be the selling point of your business.

Regardless of your choice, upkeep is important to guarantee the stability of the place, so you will need to factor in the cost needed for your necessary improvements.

Target Area

Although it may be an advantage, it’s not required that your motel is near a place of interest or a tourist site. Any location can be enjoyable because of the overall ambiance you’ve created inside your motel rooms.

Room available inscription on the black board

Besides, motels are usually meant for stopovers or overnight stays for people on the road so there should still be an abundance of potential clients without worrying too much about the fancy amenities.

However, there are some concerns that can add to your market value, such as security, transportation options, and people traffic. Also, you need to find out about your choice’s reputation within its market niche and location since this can add to your promotional costs. Do take these factors into account when making your list of finalist so you can maximize your investments.


This is the primary requirement for any business. Conduct in-depth research on a motel’s profitability first before affixing your signature. This would show your capacity for earning, not to mention how fast you can complete your ROI.

Motels focus on customer service flexibility, location, affordable pricing. It also does not need extensive features or luxurious add-ons. With that in mind, it would be easier to conceptualize your marketability, compute for your costs and analyze your profit range for each possible acquisition choice.

Once you’ve gathered all the necessary information, you can compute for each property’s profitability and make the best choice among your options.

When you’ve set your heart to own and run a motel business any sort of difficulty is manageable given the right attitude and business savvy. True, owning an existing company has its own sets of pros and cons, and the same can be said about building a business from scratch.

Although professional counsel and further research would give you an extra advantage in finding the right choice, remember that perseverance and commitment can make the difference between success and failure.

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