Thursday, June 21, 2018

Motel Market

How quickly market sentiment can change

It really is extraordinary how things can change so quickly; for the better and also, unfortunately, for the worse. I guess one does not exist without the other. Human sentiment and feeling about a particular matter or situation can change the course of activity almost in an instant. As an example, the share market depends on the sentiment of investors …

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Motel leases: what are the benefits?

Leasehold motel tenure has been a very successful type of motel ownership and operation for decades. It grew very quickly in the early 1990s and has remained an attractive option for motel ownership for very good reasons.  The many benefits of owning a motel lease is why many moteliers continue to expand their motel investment portfolios. There have been many …

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Exit planning starts now

Commencing exit planning for a motel business is never on anyone’s mind until they are ready to get out. It really should start as soon as one takes over operating a business, but this is the last thing on a new motel owner’s mind at this point.  No doubt a plan is in place for a three, five, or 10-year …

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Motels: understanding return on investment

What determines the market’s willingness to pay a particular price for a motel? The return on investment (ROI) that the market requires to invest in a particular asset, such as a motel, is a decision based on a number of factors. The combination of these factors decides the resultant ROI. The question of what ROI is expected by the market …

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From the outside looking in

The importance of a good first impression can never be understated. People make snap decisions based on their impressions in the first few moments of viewing a property in person or in digital format.  There are always market factors beyond your control; the amount of properties in your area, competing with bigger, shinier franchises with bigger marketing budgets, general economics… …

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Motels – a good news story

Service Jigsaw Piece

The motel industry really is one that sells a product and a service (as many other industries are as well). However in this instance service is the key word here.

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Adapting to change

Andrew-Morgan 167x123

In areas of regional Queensland where economies have slowed over the past 18 months or so, many within the motel industry are now changing the way they look at motel leases and freehold passive investments.

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Covering the costs

Profit Loss

One of the first steps in offering a product or service to a market is to know what it costs a business to sell the product – the breakeven point.

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