See how much the average hotel owner can expect to earn. We let you know how much, on average, hotel franchises return in profit each year and the various factors that go into that figure.
Profits are affected by several factors , including:. You may also have additional annual expenses that need to be taken into account. For instance, you might be required to pay a monthly marketing fee, depending on your franchise agreement. Both of these recurring franchise fees are paid from your profits, further reducing your actual income.
Of course, which type of hotel franchise you choose can affect your annual profit, as well. You might be surprised at the number of options you have here. The income is passive and based on your share of the ownership structure. If you decide that buying or investing in a motel is right for you, the last factor you should consider is the location. While coastal destinations will attract the tourist flock, inland motels still have great potential for generating big returns.
Whichever option you choose, the team here at Accommodation Business Brokers can help. With an impressive motel portfolio throughout Australia, we have investment options to suit all requirements. To discuss your motel investment desires, or to advertise with us, get in touch. Whether buying or selling, fill out the form below to get in touch with one of our accommodation business brokers.
Sell with us Sold Listings. Thread starter SnyCorp Start date Oct 30, Accelerate wealth. Build a business that pays freedom. Join more than 70, entrepreneurs and register for the Fastlane Entrepreneur forum. Remove ads? Sort By Best Posts. SnyCorp New Contributor. Oct 30, 35 1 9 Helena, MT. I have an opportunity to purchase a 36 room motel. What do you see as the real opportunity in a property like this? Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.
Aug 28, 57 26 TX. Russ is our hospitality expert perhaps he could advise. The only site I could find off hand with any type of benchmark is listed below. Still in negotiation. Yes, My wife and I would run the motel. Click to expand Yankees Bronze Contributor. What is the area like? Are there any that are being built soon? Is the area poised for growth which would attract more people to the area, and, thus, add to the number of potential customers?
Also, what is the condition of the property? Will it require updating or rehab in the near or distant future? Does it have any addition space or features that you could use for your benefit? For instance, is there an used space on the property that would be better used as a retail space, restaurant, or cafe for guests and outsiders? Just a couple things to consider.
Didn't see you mention them, but you may have already studied these factors. Good luck. Keep us posted. Last edited: Oct 30, Read Millionaire Fastlane. Summit Attendee. Speedway Pass. Jul 27, 5, 2, Washington DC. What do you know about motels? I am not saying it can't be done, just that experience is everything in this and any other business. I see that you may have a chance to reduce costs, improve the property, improve occupancy rates and increasing the valuation for the business nothing new, huh?
Any opportunity is great if you know what you are doing, and generally if you have to ask what we here think then it means that you are probably not ready to get into this opportunity. Also, based on what I understand, this is not only an investment, it will also be a full time job. Yankees said:. Motel is booked a year in advance for hunting season and has a trophy walleye lake just 4 miles away. No Is the area poised for growth which would attract more people to the area, and, thus, add to the number of potential customers?
Motel is in great shape. There is a grass lot that would come with the motel right next door. I was thinking of adding 6 more rooms. But I like yore ideas as well. A Days Inn is going to furnish rooms with a level of quality that is less than what would be found in a Hampton Inn. But the price of the Hampton Inn is liable to be twice that of what you would find at the Days Inn.
It is not a matter of being good or bad, it is a matter of segmenting the market so that there are Motels available for people of varying budgets. Most frequent travelers will deal with only one or two specific flags, because those Motels provide them with a balance between quality and price that they find acceptable. That is where being part of a major brand becomes an asset to you, the Motel Owner because when someone from Minneapolis wants to travel to Georgia, they can call the number four the brand they prefer and make their reservations, without a huge amount of muss and fuss.
If you own the Motel in Georgia with that brand, that is a tremendous benefit to you. And this is not only the case with Motels. This is one of the major reasons to purchase a franchise. But this is also where some of the negatives start to come in. You pay for that advertising, in the way of franchise fees or marketing fees or percentages of what you receive from that referral, from the parent organization.
This can be costly. And there are all kinds of other types of referral systems, such as Expedia, Hotels. These have become invaluable as travelers like everybody else in the world, becomes more and more dependent on the Internet. But again, you pay for that! You pay either a set fee or a percentage of what you charge the traveler, or both. It adds up and it is not getting any cheaper. Being an independent can save you money by not paying franchise fees.
But again, a huge number of people in the traveling market depend upon those brands for assurance of quality, and they will avoid non-branded Motels in many, many cases. As a result, the majority of non-branded Motels can only compete by reducing their rates. They save the franchise fee, but they probably lose even more in terms of the discounted rates and lowered occupancy levels, than their branded competitors.
You have seen these all over the country. This is where the doors to all the rooms open to the outdoors, and the traveler walks up steps or takes an elevator to a walkway that surrounds the outside of the Motel. That kind of construction is frequently open to the weather, and therein lies part of the problem, as far as the parent company is concerned.
Who wants to see someone staying at your Motel struggle up the stairs with suitcases, and then be pelted with rain and snow while they fumble for the keys, trying to get the door open? So virtually all flag Motel operations have gotten away with new construction for these types of exterior corridor designs.
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