A Complete Guide on How to Start a Motel Business in 2022



Motels are a profitable business. They are also one of the easiest ways to start a business, with virtually no risk involved. However, if you want your motel to succeed as soon as its doors open, then you need to do everything right from day one. This article will show you how to start a motel business in 2022 and make it successful for years to come.

1. Renovate a Second-Hand Motel

Renovating a motel is a great way to get started in the motel business. There are many motels for sale from both owners and brokers; for example, a motel for sale in QLD.  You can renovate second-hand motels, but you also have the option of building your own from scratch. What you do with the property depends on how much money you want to invest, how much time and effort you want to put into it, and what features are most important for your guests (and yourself).

2. Develop a Business Plan

Having a well-developed business plan will help you to make more informed decisions along the way, understand and manage the financial aspects of your business, and convince others of your idea. A business plan is a written document that outlines your plans for the future. It helps you to make decisions about your business, understand the financial aspects of your business, and convince others of your idea.

3. Do the Financials

Before you invest your time, money, and effort into starting a motel business, it’s important to do a financial analysis. By doing this, you will understand the costs of starting a business and how profitable it can be for you. Some examples of how to do financials for a motel business are:

  • Determine whether your investment is worth it by calculating the Return on Investment (ROI)
  • Look at historical data on similar businesses in order to get an idea of what kind of sales or revenue they generate per day/week/month etc., by using financial ratios such as Gross Profit Margin Ratio (GPMR), Net Profit Margin Ratio (NPRM) & Return on Assets (ROA).

4. Location of the Business

The location of your business is one of the most important decisions you will make. It will determine how many customers you get and how much profit you make. Before choosing a location, there are several things to consider: accessibility to your target market, reputation and availability of services nearby, affordability, and demand for such facilities in the area where it is located.

5. Decide on the Name, Legal Structure, and Start Up Costs

Choosing the right name for your motel business is crucial. You should consider whether it will target a specific group of customers (e.g., couples or families), or if it’s more general and can accommodate all kinds of people. It’s also essential to choose a name that gives customers an idea of what they can expect when they visit your motel, e.g., “The Perfect Motel” or “The Cleanest Motel”.

Depending on the legal structure you decide to use for your business, there may be different requirements regarding how much money you need to start up your motel business. If you set up as an incorporated company in Australia, this requires around $150 AUD just for registration fees alone; however, if you choose partnership then there are no costs associated with setting up at all. As such it may be worthwhile weighing both options before making any decisions about which one works best with your objectives as well as the financial situation even though starting out as partners means less initial capital required from each individual partner/owner who wishes to invest into their shared dream project together.

6. Obtain a Permit and License for Operation

You’ll need a permit and license to operate your motel. You may also need it for other businesses, such as restaurants or convenience stores, but this is especially true for motels because of the potential for guests to stay in the same place for long periods. You will want to check with local government officials about obtaining a permit from them first. In some areas, you may need a special license issued by the state government or federal government as well as by your county’s main governing body (an elected mayor or council). Even if there is not much red tape involved in getting these licenses and permits, it’s still important that you do it right so that no one has reason to complain later on down the road when they discover that they have been staying at an illegal motel all along.

7. Shop for Suppliers and Vendors

A motel is a unique business, and it needs special suppliers. You can’t just walk into the nearest store and expect to find everything that you need to run your motel.

If you want to start a motel business, then you have to know where to go for supplies and food. This will be a lot easier if there are several businesses in your area that offer these types of products or services. You could also try searching online for local options by searching “motel supplies” on Google or Yahoo. If there aren’t any stores in your area, then consider working with an online supplier like Amazon or eBay instead you might pay more than if you had found local options but at least they’ll deliver the products right away so that won’t be an issue with being too busy running around town trying hard not fall asleep while driving home from one store after another looking for these things.

8. Hire Trusted Employees and Management Team

You need a good manager. The right manager can make the difference between success and failure. Hiring a good accountant to handle your financial needs and tax issues. You should also hire a lawyer who will guide you on how to maintain legal records of all your operations, especially when it comes to dealing with customers, employees, and contractors. And you might also want to consider hiring an insurance agent if you plan on expanding beyond just one property or opening multiple properties in different locations across the state or country. Having proper insurance coverage ensures that no matter what happens, everything will be taken care of by your insurance company without any hassle from you whatsoever.


The motel business is a rewarding one, and if you are ready to start up, there will never be a better time than now. With all the available resources and information out there, you can easily turn your dream of owning your own motel into reality.