Coastal V's Inland Location If you want a motel for profit, buy an inland motel. There are many good quality motels located in quite sizable inland towns that are making a lot of money. Also, with a high profit level you will be able to borrow more to fund the purchase. If you want a coastal lifestyle, be prepared to pay more for the same motel located on the coast. You may get a perceived lifestyle (although many dispute this) in a more equable climate, however, it will be more difficult to borrow to the "limit"

Location with in a town. There probably is a general trend to the siting of quality motels in the CBD, or close to the CBD, of large towns where there is close access to facilities. In the early days of the industry motels were often sited outside of town where the land was cheaper.

Location in a small town V's larger towns. There is little doubt that there is a trend to regionalisation of Australia, where a larger centre is taking from the smaller towns many of the services, and also light industry. The smaller towns cannot compete with the larger centres in the provision of services, recreational facilities and so on. As a consequence new motels tend to be located in the larger centres unless the smaller centre has some kind of unique appeal, such as being in a strategic position on a major highway.

Where is the competition located? Check out the position of other motels. Is the market large enough for everyone. Does the motel target a certain kind of clientele, and so stand apart? Does the motel enjoy a unique location?

Location in regard to passing traffic. Some motels depend on passing traffic for their custom while others have a custom that is not derived from passing traffic, but from bookings and tour groups. Thus appearance and presentation to the road can be critical, where there is a dependence on passing trade.

Location. Is the motel easy to find? Do you have to search some back street to find your accommodation after a tiring day at the job, or at driving?

The points mentioned above, can have an important effect on trading levels and to an extent, values. Generally speaking any advantage, or disadvantage that a motel may have due to location, will be reflected in the trading accounts and thus the profits. And from the profits the capital value of the asset will be assessed.