If you’ve ever driven through regional Australia and thought, “I could run a place like that”, you might be onto something.
Because right now, owning a motel is not just a business play, it’s a lifestyle shift that could change your future completely.
Let’s cut through the noise.
Motels are back.
Domestic travel is strong, short-term rental competition is easing, and operators who focus on value, cleanliness, and smart digital marketing are seeing serious returns.
The Motel Industry in 2025: Quiet Strength, Big Potential
Here’s what you need to know about the numbers:
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$3.97 billion in annual revenue and climbing.
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$441 million in profit across roughly 2,000 motels.
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Profit margins sitting around 11 percent, with stability improving every year.
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Domestic tourism still driving the majority of bookings, supported by international growth.
This is not a dying industry. It’s a stable, essential part of Australia’s regional economy.
Travellers still need reliable, affordable places to stay, and motels deliver exactly that.
Why Buying a Motel Can Be Life-Changing
Most motel buyers are chasing two things: income and independence.
And the best part?
You can live on-site, manage your own hours, and build equity in both a business and the property underneath it.
Here’s why motels make sense in 2025:
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Predictable income: Nightly rates and consistent occupancy keep cash flow steady.
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Property upside: You’re buying real estate and a business.
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Lifestyle balance: Swap city stress for community, space, and control over your time.
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Resilient demand: Travellers, workers, and even housing overflow all need short-term accommodation.
For many Australians, this is the bridge between employment and true ownership.
Where the Opportunities Are
Regional areas are leading the charge.
Think coastal towns, highway hubs, and tourism belts — anywhere road-trippers, tradies, or families need a place to pull up for the night.
If you want proof, explore live listings for motels for sale in Queensland or motels for sale in New South Wales.
You’ll find well-established businesses priced from $600,000 up to $3 million, many returning 15 to 25 percent ROI.
What Makes a Good Motel
Forget the “retro neon sign” dream. What you’re really buying is systems and cash flow.
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Location: Visibility, access, and traffic matter more than decor. Highway frontage or proximity to attractions drives occupancy.
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Cleanliness and comfort: It’s not about luxury. It’s about spotless rooms, working air conditioning, and reliable Wi-Fi.
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Reputation: Reviews are gold. A 4.5-star average rating on Google can double your bookings.
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Operations: The best motels run smoothly with part-time staff, local cleaners, and automated bookings.
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Value-added extras: Things like pet-friendly rooms, EV chargers, or high-speed internet can be genuine game changers.
The Financials
Average motel buyers are seeing returns between 12 and 20 percent depending on occupancy and management model.
Here’s the broad breakdown:
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Motel Type |
Price Range |
ROI (Owner Operated) |
ROI (Managed) |
|
Regional Freehold Motel |
$1.2m – $3.5m |
15–25% |
8–12% |
|
Leasehold Motel |
$300k – $900k |
20–35% |
10–15% |
|
Coastal or Tourism Hub |
$2m – $5m |
12–18% |
7–10% |
Browse live examples of motels for sale in Australia to get a sense of price, return, and occupancy trends.
The Lifestyle Factor
This is what most people miss — owning a motel is as much about lifestyle as it is about business.
You can live where you want, be your own boss, and meet new people every day.
It’s common to see owners running the business with their partner or family.
They live in the residence attached to the motel, save on rent, and reinvest the profits.
Some even turn their motels into boutique experiences — themed rooms, wine tastings, art walls, eco stays.
It’s all possible.
If you want inspiration, check out Motel Molly in Mollymook or The Mysa Motel in Palm Beach, both proof that modern motels can be stylish, sustainable, and highly profitable.
The 2025 Outlook
Here’s what’s coming next:
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Domestic travel spending is expected to grow by 2.7 percent annually through 2030.
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Short-term rental supply is shrinking as councils and states add new taxes and regulations.
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Older travellers and road-trippers are becoming a core growth segment.
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Boutique and eco motels are emerging as high-performing niches.
In plain English, demand is strong, competition is softening, and the entry window is wide open.
What to Do Next
If you are serious, start looking now.
The best opportunities get snapped up by buyers who understand both hospitality and property.
Explore:
Then talk to your accountant, check the occupancy reports, and walk the property.
You’re not buying a dream — you’re buying a cash flow machine that can fund your freedom.