The first step to buying a motel or accommodation business

Before you start looking for a suitable motel or accommodation business, it is recommended you determine how much you can comfortably afford to borrow. Let’s consider a Freehold Going Concern motel for a purchase price of $1,000,000.

Based on typical lending LVRs the maximum borrowing capacity would be $700,000 (or 70% of the purchase price). You will require $300,000 cash to inject into the purchase. An allowance will also need to be made for the costs of the purchase and working capital until the business is up and running. We’ll use an approximate allowance of an additional $70,000 – $80,000.

Based on the above, cash of approximately $380,000 will be required for the purchase.

The next step is to determine the required cashflow of the motel to enable comfortable repayments.

It’s important to note if you don’t have sufficient cash funds there may be other options available to raise the equity. Your Green Team finance broker will be able to walk you through your options in detail.

Knowing which lender will look most favourably at your business case is critical when it comes to getting your business off the ground.

Your Green Team broker is in the best position to provide you with a thorough overview of your borrowing capacity for motel purchase based on the lending policy of a range of banks and secure lenders. You may be surprised by the sheer range of dollar values from bank to bank.


To secure finance approval you will need:

Additional documentation may be required and your Green Team Finance Broker will guide you through exactly what you need and professionally package your application for presentation to the bank or lender.

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THE FINEPRINT: The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. While all care and attention are taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.

Green Finance Group Pty Ltd ACN 145 035 221 is authorised under LMG Broker Services Pty Ltd ACN 632 405 504 Australian Credit Licence 517192.

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Meet the Author

"While my extensive industry experience covers all areas of banking, loans and leasing – commercial, equipment and residential – my business finance specialties are the broader hospitality, accommodation and childcare industries."

Daniel Green

  • Commercial Finance, Equipment Finance, Home Finance

Fortitude Valley, Brisbane

Australia's leading hospitality, accommodation and childcare finance specialist and winner of Australian Broker of the Year 2022.

Prior to establishing GFG in 2010, I occupied senior management roles in some of Australia's leading financial institutions including Commonwealth Bank of Australia, Suncorp, Bankwest and Westpac.