Is Owning A Motel Profitable 2024?

Cost to Start a Motel

You will need an investment of $495,000 – $2,495,000 on average to build a Motel in the U.S. However, this amount can vary depending on different factors.

Factors to Consider When Starting a Motel

- Location - Competition - Market Demand

Pros of Starting a Motel

– Highly profitable – Value appreciation – Flexibility in management – You get to be your own boss

Cons of Starting a Motel

– Operational challenges & cost – Income may vary by season – Taxes – High employee turnover – Risky

License & Permits Required 

– Business License – Building License – Food service License – Liquor License – Health inspection certificate – Fire inspection certificate – Sign Permit

Insurance Required 

– General liability insurance – Business interuption insurance – Employee insurance – Worker’s compensation insurance – Fire/theft/damage insurance

Is Owning A Motel Profitable?

Your Motel’s location, careful research, planning, and execution play a very important role in deciding the profitability of your motel.