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Well Established Motel And Rv Park With For Sale

Asking Price:
$1,300,000 (USD)
Sales Revenue:
$363,009 (USD)
Cash Flow:
$222,218 (USD)

The ideal buyer is someone with business or hotel/motel management background who seeks to own and operate a profitable, updated and well-organized business opportunity with Real Estate. A new owner will have an appreciation and understanding about community involvement, customer service and being a good neighbor.

The motel and RV park are extremely well-maintained with the motel receiving an upgrade in 2016. This motel and RV park are virtually the “only game in town”. The multiple positive reviews on TripAdvisor give an overall ranking of 4.5 stars. The motel and RV park is clean, comfortable and offers great customer service.

Property information

Premises Details:

The business occupies three Real Estate parcels which consist of the 20 unit motel, 15-space RV park and a 1,159 square foot single family residence. The motel was built in 1968 and expanded in 1994. Besides the 20 rooms, there is an attached manager’s residence with approximately 1,000 s.f. with three bedrooms, two bathrooms, kitchen, dining, living room and outside front and back decks. The seller resides in the manager’s residence.

The motel has been renovated multiple times over the years with the most recent in 2016 which included new wood siding and interior finish upgrades. The RV park was constructed in 1993 and is adjacent to the motel. It has water/power hookups at each space and access to motel amenities including a laundry room and Wi-Fi.
The single family residence, built in 1970, is a single-level, three bedroom, one bath home sitting on 1.58 acres. The residence currently has a tenant in place.

Occupancy is estimated at 47% in the motel and 90% in the RV park.

Business Operation

Expansion Potential:

The seller expects the revenues continue with the historical growth trend with approximately 10% growth in 2018. The increase is expected based on the increase of baby boomers who are traveling with RV’s and the lack of other quality lodging accommodations in the local area.

A new owner could increase occupancy through advertising and marketing to local and out-of-area travelers and travel industry.

Competition / Market:

Competitive advantages include: desirable location, modern facilities, and marketing, and customer service.

According to First Research, overall revenue in the lodging industry is expected to grow 4% over the next 12 months. This is driven in part by the rise in consumer spending and full employment. The industry is benefiting from tourist travel while experiencing some disruption from short-term rental services such as AirBNB. Also, online travel agencies such as Expedia have reduced the earnings from hotels and motels by charging commissions on bookings.

Large hotel/motel operations have the benefits of economy of scale and raising capital while small operations benefit from favorable locations and specialty services. The US lodging industry is highly fragmented with approximately 45% of the total revenue being generated from 50 of the largest companies.

The RV park industry is mature dating back to the beginning of automobile mass production. Overall demand is driven by personal income and tourist travel. The profitability of individual parks depends on the site occupancy rate and
effective marketing. The typical RV park customer is nearly 50, married and has an annual household income of around $60,000 according to the Recreation Vehicle Industry Association. Word-of-mouth endorsements and reviews on industry websites are important.

Reasons for selling:

While the motel and RV park has provided the owner with a great income and lifestyle which allowed the owner to be “home” while raising their family. Now, the owner is an empty nester and wishes to retire and travel. The business has allowed the seller to live a comfortable lifestyle while having the flexibility to help family, friends and charities both financially and with volunteer time.

Trading hours:

7 Day/24 hours

4 PT
Years established:

Other Information

Support & training:

Will train for 4 weeks @ no cost
Business or hotel management experience including customer service, sales and operations background is a plus.

Financing available:

$195,000 down/$130,000 for 120 mos. @ 7.50/Other financing
An experienced lender has provided a pre-approval for a qualified buyer. A copy of the lender letter will be provided with the Confidential Information Memorandum to qualified buyers.

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