When considering the purchase of a motel business, it could be helpful to gain an overview of the returns being offered by the current market. These notes are intended to outline the differences in return on investment for each situation.
Most motels in New Zealand operate by way of leasing. One of the main reasons for this, could be that the return from the real estate investment (land & buildings) is considerably lower than that earned by the operator of the business.
A Popular Choice. There are a good many Bed & Breakfast establishments throughout New Zealand and they offer a unique and distinctive accommodation experience for the guest.
Comparisons with other types of property investment.
It may come as a surprise to hear that the rates of return on investment for motel and accommodation businesses can be quite different throughout the country. So, where you buy may largely determine the return you could expect.
The intention of this article is to provide a brief overview of the operation of Management Rights in New Zealand.
The majority of new entrants to the motel or accommodation industry will have purchased their business by way of lease. For many, this will be their first encounter with a commercial lease and it often seems that some aspects of commercial leasing may not be fully understood.
When a business is advertised for sale as a lease, this means that it is the business only for sale and not the real estate which it occupies.
