Is Owning A Motel Profitable 2024?

What is a Motel Business

Motels work exactly like a hotel. However, the only difference is that the front doors of rooms face a parking lot and are not hidden behind a lobby or a reception desk.

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

Motel Owner Earnings

On average, the earnings of a Motel owner in the U.S. is $50,000 annually.

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

Factors To Consider When Starting A Motel

- Location - Market Demand - Competition

Ways To Buy A Motel

- Leasehold Motel - Syndicate Partnership - Freehold Going Concern Motel - Franchise

Is Owning A Motel Profitable?

Just like any other business, can be profitable, provided that the occupancy rate of your Motel is more than 60%.