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BRAND NEW MOTELS
The cost of building a new country motel used to be prohibitive. Builders would generally quote around $70,000 per room, but by the time you added a reception area, manager’s residence, laundry, the cost of land, approvals, holding costs and furnishing costs the price would blow out to well over $100,000 per room.
A standard 20 room motel running at 60% occupancy (above the state average) with a tariff of $110, total revenue of $439,000 and a net profit of $257,000 will be worth around $1,800,000, or $90,000 per room (see profit calculation). This means that in the past, enthusiastic developers built new motels, then had to wait years for the value of their motel to exceed the building cost.
This is why country motels in Australia are generally older than 30 years, and why so many motel builders were ordered to down tools in 1980.
The good news is we have solved the problem with a modular motel design that is constructed off-site and shipped to the motel location. The factory gate price of each motel room can be as low as $40,000. This means that a motel purchaser can enjoy the benefits of owning the newest motel in town and start with a property that is worth considerably more than the cost.
The secret is shipping containers. These low cost incredibly strong structures form the basis of the motel room, and are refashioned, plastered, rendered and transformed into a modern, up market 4 star property.
The photographs below show how shipping containers can be transformed into a smart two bedroom apartment or house.
Please click here for more details.
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