Motel/Hotel & Restaurant
Ontario has many strong Motel & Restaurant towns for investments buying, strategically placed for through traffic plus it has a strong tourism economy, so it’s a through town and a destination town in Investment terms.
Cozy and Comfortable! There are many people who still prefer the small family run motel and we at Falls Manor Resort and Restaurant are proud to offer that option. so if you like to invest or run the similar business or selling one and looking to investment in other sector we can help you in your buy or sell of that real estate
To guesstimate the income you need to make some provisos.
So, if the investment of 1 Million in Motel & Restaurant & that the $1m Motel & Restaurant is a freehold, in reasonable condition, say 3 1/2 stars at least, running strong around 60-65% occupancy, with no restaurant, then it should return approx 15% ROI(Return on Investment) to an owner operator , meaning around $150K after all expenses.
That’s the industry expectation for Ontario Motel & Restaurant.
In City returns are lower due to increased competition and higher land costs, so same Motel & Restaurant in city area returns around 10%.
Normally 25 – 30 year Leaseholds show higher returns than freehold, but it’s all location Location…location.
The location really matters of course and the accommodation “product” needs to be tailored to the local market and then maintained and presented well by very welcoming hosts and marketed strongly by internet. They’re complicated in the fine tuning the business and investment but those are the basics now days. They can be a good investment and can be run under your management, which is also a part of business plan.
We are Very happy to help anyone considering this area of investment, as many people have invested in this sector and gain their financial freedom . . . .
If you like to be contacted by us with more details, please fill up the contact form and send us to serve you in your investment needs…. contact us