28 Aug 2025
Words The Hotel Conversation

RB Research’s inaugural Motel Report 2025: Analysing a $15 billion national industry

RB Research, the research arm of national accommodation property agency ResortBrokers, has published the sector’s first-ever comprehensive, data-driven analysis.

“This is the first study of its kind,” Property Economist Josh Mangleson, Head of RB Research told The Hotel Conversation.

Motel Report 2025 gives the industry its first idea of its own size and value. The report estimates the value of Australia’s motel sector at $15 billion, based on 3,586 motels across the country.

The report is the result of several months of data collection and analysis, drawing on thousands of motel transactions across Australia over the last decade. Sales data was sourced from ResortBrokers — which transacts one in every three motel sales nationally — and external valuers Opteon, Acumentis Property Valuers and Knight Frank Valuations.

“The report sheds light on several aspects of the national motel sector, an area that, until now, has mostly been guided by assumptions and guesswork,” says Mr Mangleson.

“We arrived at the industry’s total value of $15 billion using national median per-key rates for FY25, which were applied to the number of keys across the country relative to their operational type.”

A key finding of the report is that motel demand is far outstripping supply.

“Buyers are rediscovering the value of motels as an asset class,” says Mr Mangleson.

“Motels, particularly leasehold motels, provide affordable entry points into the accommodation industry, as well as a business plus a home — a key draw amid the national housing crisis.”

The report found that over the last decade, regional freehold going concern motels have enjoyed the greatest growth at 154%.

“Bang for buck, regional freeholds are the best value, cheaper than state capitals and coastal locations. Regional freehold passives outperform their coastal counterparts by 20%,” says Mr Mangleson.

“In the leasehold space, Queensland motels hold the best value on the eastern seaboard with a median yield of 35.6%, compared to 32.3% for New South Wales and 29.2% for Victoria.”

Mr Mangleson said buyers are also increasingly drawn to motels for their capital growth.

“Traditionally, motels appealed to buyers for their cashflow, but these days buyers of motel freeholds are also drawn by their capital growth potential,” he says. END