Posted by Mike on October 26, 2005 at 13:28:54:
As with any manager, I have found if you pay them top dollar and make them feel appreciated then they will be very loyal to you because they know that finding another management position like that will be hard to find.
Motels - Posted by Berno
Posted by Berno on October 25, 2005 at 12:43:34:
I am currently looking into purchasing a 15 room motel in a town of about 5000 people. The list is about $190,000 and it’s in decent shape. The rooms are all singles that go for $30 a night. There is also a 3 bedroom house that is attached to the motel and serves as the manager’s residence now (could be used for another purpose?). I was wondering if anyone here has motel experience and could give me a few ideas of what kind of occupancy, expenses etc. that I could run into. Thanks very much!
Re: Motels - Posted by bill
Posted by bill on November 07, 2005 at 05:11:14:
how do you fill vacancies in a small town? do people actually live in the motel? a town of 5000 doesnt sound like it could support a motel. i was thinking about the same thing but wasnt sure about keeping somewhat filled.
Re: Motels - Posted by ray@lcorn
Posted by ray@lcorn on October 26, 2005 at 17:34:54:
Berno,
As Bill pointed out, small motels are tough.
We had a similiar situation in this thread: http://www.creonline.com/commercial-real-estate/wwwboard5/messages/17603.html
ray
Re: Motels - Posted by Bill Taylor
Posted by Bill Taylor on October 25, 2005 at 20:13:28:
I guess I can help you somewhat. I live in Indiana so living up here your expenses for utilities in the winter run quite high and vacancy will also be high normally in winter months. If you are going to manage yourself you should be able to keep more units occupied. Hire a manager and you have more to deal with than you may want to . We have a great manager right now the best we have ever had. WE have had more than our share of nightmares though with mangers. There are a lot of expenses that you may not expect. Seems like in the smaller motels like ours you don’t get as much in the way of credit cards to pay the bill so you have little recourse when someone likes your towels, bedspreads, sheets and whatever. YOu have to watch every expense a lot closer. If I had it to do over again I would definitely go in another direction. Be prepared for more of a job than a lot of other commercial real estate choices. I also think the motel is going to be difficult for me to ever get out of unless the area really starts to develop and someone needs my land. Oh well you probably know all about that wishing in one hand and you know what in the other and see which one gets filled up first. Good Luck.