How Much ?

$675,000 that’s a 15.5 % return on investment

What’s return on investment ?

Its the return you make per year on your outlay. If you were to put your money in the bank at 3% interest your return on investment would be 3%.

Is that a good return ?

Industry standard for a freehold is between 10 - 15 %. So the answer is yes but don’t take my word on it do some research on motels for sale.

What do I get for my money ?

Is it a safe business ?

A profitable business and unlike a leasehold you have the security of owning a bricks and mortar investment.

In addition you get a 3 bedroom house with either two large living areas or 1 large living area and a restaurant.

The motel has been trading since the 70’s. The table below is the occupancy rate for the last few financial years. 

Can I improve upon the figures ?

We purchased the business with a view to semi retirement, so apart from providing the best service we could, no attempts have been made to increase our turnover. You will find we do not even advertise on the local tourism website www.bingara.com.au so I would be surprised if a motivated individual couldn’t improve on our figures.

The most obvious area to increase revenue would be reopening the restaurant or serving evening meals to rooms. At present we have a chargeback deal with the local services club to bill meals back to rooms for companies that need everything on the one invoice. Individuals are made aware of the eating options and left to make their own choice.

There is also room to double the size of the motel should the mining boom that has hit Narrabri (100% occupancy and often 3 weeks in advance) continues to head this direction.

Is it hard work ?

Not compared to a lot of occupations, but after a days cleaning from being full the night before you will know you have done a days work.

At present the motel is easily run by a husband and wife team but should you want to kick right back and hire a casual cleaner there are several willing locals available.

This is the right size motel for a couple, family, someone starting in the industry to use as a stepping stone or as we did for someone looking to wind down into retirement

Is it a safe town

The answer is a huge Yes to this we are not prone to the problems a lot of regional towns suffer. This is a friendly close knit little town. Having said that its not isolated so if you cant get what you need from any of the fine shops in town we are close to the larger towns of Inverell, Narrabri, Tamworth and Moree so you have all the conveniences of any suburban shopping centre.