4 Popular Questions Asked by New Investors to the Australian Motel Business

It’s a well-known fact that tourism in Australia is a very lucrative business. Australians and overseas visitors are as keen as ever to explore the cities, famous coastlines, and everything else that makes Australia great.

With that said, it’s no wonder that many people with money to invest often opt for the hospitality industry. However, if you’re new to the industry, it’s crucial to understand all the key elements such as choosing the best hotel furniture suppliers.

Motels: The Best Investment

According to statistics released by World Data, Australia ranked 74^th in the world for tourist destinations in 2020. Additionally, 2019 showed an impressive 9.4 million tourists visiting the country.

It’s clear then that there’s a great deal of opportunity for investors to make money in the accommodation business. And that includes smaller motels located in or outside major cities.

1.     Why Buy or Invest in a Motel?

Expert hospitality investors recommend opting for a motel as an excellent first business to invest in or even manage. Here are a few reasons why:

• Motels function on a smaller scale than hotels, making them a great starting point to learn the ropes
• While running a motel is similar to a B&B, there’s often a greater opportunity for increased revenue
• Many motel owners/managers live on-site, adding additional convenience
• The rewarding tourist market means there’s a stable return on investment
• Unlike B&Bs, guests don’t have to stay in your immediate space (your home)

2.     What are the Main Responsibilities of a Motel Owner?

When you buy a motel, you have the option of running it yourself or hiring a motel manager with extensive experience in the industry. If you’re new to the industry, hiring a manager is often the best idea to ensure that profits aren’t hampered while you learn the business.

Once you take ownership of a motel, you will be known as a Motelier and a few of your (or your appointed manager’s) tasks might include:

• Setting up or refurbishing the existing space: Updating the furniture and design style can easily be done by reviewing the hotel and apartment furniture packages on offer from hotel and motel furniture suppliers. These are designed with high traffic areas in mind, and come at a price suitable for overhauling multiple rooms.
• Maintaining facilities: Hire and manage the necessary staff to keep the motel clean and presentable according to industry standards.
• Interaction with guests: This includes overseeing accommodation bookings, check-ins and check-out and resolving any queries.
• Set up and maintain good relationships with local vendors: Your motel will require a host of different vendors to ensure its success. This includes food and beverage companies and various repair contractors. It’s essential to maintain healthy business relationships with these vendors.
• Create a professional admin and accounting system: In short this refers to managing your motel’s books. It also includes the renewal of licenses, permits, insurances and any compliance regulations.
• Deal with the day-to-day: This involves managing the staff that do the day-to-day work such as cooking and cleaning. Here you will also need to set up work contracts based on industry stipulations.

3.     Why Should a Motelier be Involved with Local Tourism Bodies?

Becoming a recognisable member of the local community serves a dual purpose. Firstly, it’s advertising that you don’t pay for as you’ll be listed on the area’s local business pages.

Secondly, supporting local events will go a long way to bringing new people to the area. This in turn creates business for your motel. Being known in the local community also gets your motel added to any tourism leaflets or websites.

4.     How Can a Motelier Establish a Long-term View?

To continue reaping the rewards of a positive return on your investment, industry experts recommend keeping your motel in tip-top shape. This includes keeping the design style current.

With that focus in mind, it’s important to work on a 7 to 10-year refurbishing plan. This will make it easy for your motel to not only remain a top attraction, but also to maintain potential resale value. A few pointers to consider here include:

• Stay current with indoor and outdoor furniture design styles
• Upgrade in-room technology such as appliances as well as TV and audio equipment
• Incorporate eco-friendly styles and products and advertise this fact as many tourists prefer to do business with sustainable organisations
• Keep the room décor and necessities current by regularly replacing linen and curtains
• Add technology-rich features to enhance guest experiences
• Create and upgrade communal lounge areas with features to enhance your guests’ experience, such as a vending machine or TV
• Liase with local businesses such as tour operators to create tourist-focused packages

Final Thought

As we’ve already highlighted, becoming a motelier in Australia is an excellent way to get established in the hospitality industry. Opting for a property that has an existing reputation will mean you can just pick up where the previous owner left off. Simply do the necessary upgrades, to ensure you give your patrons the best.

There’s no reason why you shouldn’t be a part of Australia’s booming tourist industry!