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16/11/2009 -
What is a mum & dad motel |
Primarily a "mum & dad" motel is a motel where the motel is run by a couple with out much assistance from staff. They are motels on the smaller end of the scale and provide B&B services only, although some may provide evening meals to units.
Motels of up to say 12-13 units would usually be in this class. However, should the occupancy rate be low then a motel with more units could still be still classed as a "mum & dad" operation. Conversely if the activity rate is high then a smaller number of units would be appropriate. I know of one motel in particular, of 12 units, that is definitely not a "mum & dad" motel, because it has such a high activity level.
Perhaps another way of assessing the status of a motel is to look at the trading data. In my opinion a motel trading say up to $110,000.00 pa could be classed as a "mum & dad" motel. Should the motel be achieving a high tariff then this threshold of $110,000.00 pa could be increased to say $125,000.00 pa.
Another factor to consider is ease of maintenance for the building and the grounds. Some motels and in particular modern ones are easy to maintain and have low costs (and workloads) to maintain both the landscaping and the building.
The ultimate determinant as to the "mum & dad" status is the workload. Can the motel be operated by only 2 people, with minimal input by employees?
Really, there are a number of factors to consider;
Generally must be a B&B operation,
Turnover of the business,
Ease of maintenance, including landscaping.
Number of units, and,
The level of tariffs being achieved.
There are no "hard and fast rules but basically a "Mum & Dad motel is a motel that can be operated by only the 2 persons.
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