Surf’s up: Seven coastal motels for sale offering a sea-change lifestyle
Australia’s coastal motel market is experiencing a robust period of activity, driven by several key factors shaping domestic tourism patterns.
According to insights from Ray White Commercial, the prolonged high-interest rate environment and relatively weak Australian dollar have made drive holidays an increasingly attractive option for Aussie travellers, particularly benefiting coastal locations.
RWC’s Head of Research, Vanessa Rader, indicates that investment in the coastal motel sector has remained steady, with more than $300 million recorded in transactions in 2024 for smaller offerings under $12 million.
Strong domestic tourism numbers has made the coastal motel sector popular. Picture: realcommercial.com.au
These assets are showing varied yields ranging from 5.4% to 9%, reflecting differences in quality, location, and redevelopment potential.
Ms Rader said the sector’s resilience can be traced back to the COVID-19 period, which sparked renewed interest in domestic travel destinations.
“This trend has evolved rather than dissipated, with current economic conditions reinforcing the appeal of drive-to destinations. The ability to travel with pets and the generally more affordable nature of motel accommodation compared to larger hotels has also resonated with cost-conscious travellers dealing with broader inflationary pressures.”
Sea-changers have been drawn to the motel market. Picture: realcommercial.com.au
Ray White Commercial has observed two distinct buyer profiles in the coastal motel market.
“The first emerged during COVID-19 with sea-changers looking to own and operate these assets while undertaking refurbishment programs. The second consists of investors who recognised the growing demand for these properties as visiting destinations, capitalising on Australia’s renewed appreciation for domestic travel options,” Ms Rader said.
“Cost of living pressure is actually working in favour of these assets, as travellers seek out more economical holiday options. This has enhanced the investment appeal of smaller motel offerings, particularly in well-located coastal areas that can sustain strong occupancy rates throughout the summer period.”
Heading into 2025, Ray White Commercial predicts the combination of strong domestic tourism numbers and the continuing appeal of drive holidays will see the coastal motel sector maintain its position as a resilient segment of the accommodation market.
As such, we’ve rounded up the best coastal motel opportunities currently on offer around the country.
A retro slice of Palm Springs on the east coast – Eden, New South Wales
Price guide: $2 million
The Coast Motel in Eden, NSW. Picture: realcommercial.com.au
Located in the heart of Eden’s picturesque beachside township, The Coast Motel is a stylish property with exceptional investment potential.
Fully renovated less than two years ago, the vibrant Palm Springs inspired establishment comprises 12 double- and 2 triple-rooms offering modern, relaxed coastal vibes.
Two on-site businesses – a local radio station and nail salon – provide further income potential for buyers, along with a substantial two-level manager’s residence featuring three bedrooms, living room, kitchen and two bathrooms.
“Eden is well known for its whale watching and is a popular one-or-two-night stopover for tourists traveling between Sydney and Melbourne,” said John Gymellas of Raine & Horne Bexley.
Mr Gymellas noted that the business enjoys approximately $170,000 net profit, with circa $450,000 of gross annual takings showing on current income statements.
The freehold opportunity is on offer via a mortgagee sale with a price guide of $2 million.
Award winning accommodation and restaurant – St Helens, Tasmania
Price guide: $2 million
The Queechy Motel in Tasmania. Picture: realcommercial.com.au
Considered one of the best bay side locations in Tasmania, the magnificent Queechy Motel is an ideal opportunity for a sea change enthusiast at an affordable entry level.
The St Helens property is comprised of six rooms enjoying views of Beauty Bay, a separate two-storey manager’s residence and the renowned and award winning Furneaux Restaurant & Comptoir.
Marcus Douglas of Shepherd & Heap noted the potential to operate the business remotely, freeing up the manager’s residence for an additional income stream.
Mr Douglas also told realcommercial.com.au that Tasmania’s east coast has experienced a remarkable visitor increase in the last year.
“St Helens in particular was absolutely flogged with tourists over the Christmas period. And we expect numbers to increase further when the region welcomes new tourism boats in the near future.”
Positioned within short walking distance to the town centre, the Queechy Motel was recently voted as ‘Best Mid-Range Accommodation’ in 2023 and also took out the bronze in 2024 for ‘Best Budget Accommodation’ in Tasmania.
Tropical oasis footsteps from the beach – Mission Beach, Queensland
Price guide: $2.4 million
The Village Motel in Mission Beach. Picture: realcommercial.com.au
Home to palm fringed stretches of stunning beaches, laidback cafes and World Heritage wonders, Mission Beach is considered a true gem of North Queensland.
Privately nestled in tropical gardens with excellent main road frontage, The Village Motel offers an exceptional opportunity to capitalise on this popular tourism hotspot.
Consisting of 18 simple rooms – six motel-style and 12 resort-style – the idyllic 2020sqm property has the potential to be a boutique resort, holiday accommodation or backpacker hostel.
The Village Motel in Mission Beach. Picture: realcommercial.com.au
Located a moment’s walk from the beach and close to shops, cafes and local restaurants, the property also boasts a common area and tropical swimming pool.
With Mission Beach also the mainland gateway to Dunk Island, potential buyers have the potential to capitalise on the many tourists looking to enjoy day trips to the island.
Rare opportunity on the NSW South Coast – Mollymook, New South Wales
Price guide: For sale by auction
The 2,024sqm block of R3 Zoned land in Mollymook. Picture: realcommercial.com.au
Large parcels of fully cleared and development friendly land in one of South Coast NSW’s most popular towns are rarely offered to market, which is what makes 8-10 Davies Street in Mollymook such a desirable prospect.
The 2,024sqm block of R3 zoned land, which sits on two separate titles, comes with existing approval for eight premium townhouses, but also holds exceptional potential to design and deliver a brand-new motel or hotel that could benefit from epic ocean views.
The property’s sought-after locale is metres to the suburb’s famous ‘Golden Triangle’ and a short walk to Mollymook Surf Club, beach, golf club, cafes and array of local restaurants.
Highly desirable leasehold on the Great Ocean Road – Apollo Bay, Victoria
Price guide: $700,000
The Beachcomber Motel and Apartments in Apollo Bay. Picture: realcommercial.com.au
Sea changers looking to secure a new business without the capital required to purchase a freehold property would do well to consider The Beachcomber Motel and Apartments in Apollo Bay.
Nestled in the heart of the Great Ocean Road, Apollo Bay receives more than seven million visitors annually; a mix of corporate travellers through the week followed by leisure seekers exploring the world-famous Twelve Apostles and Cape Otway National Park on weekends.
The motel boasts 16 well-presented rooms spanning nine motel rooms, five one-bedroom apartments and two, two-bedroom apartments.
It also has a three-bedroom owner’s apartment, a long lease to 2043 and consistent net profits.
The peaceful yet central location is a five-minute walk to the beach, shops, pubs, restaurants, cafes and golf course.
Waterfront motel with high growth potential – Port Macquarie, New South Wales
Price guide: $3.695 million
Le Gorge Motel in Port Macquarie. Picture: realcommercial.com.au
Location is everything in the hospitality and accommodation game, which makes a motel located in regional NSW’s most popular town an incredibly hot commodity.
Blessed with a serene waterfront setting, Le Gorge Motel is an incredible commercial prospect in the always popular beachside town of Port Macquarie.
Set on a generous 935sqm site with R4 High-Density Residential zoning, the recently refurbished motel features 15 rooms and yields a robust average gross revenue of $300,000.
Peter Shiplee of Elders Port Macquarie said the property offers an array of possibilities.
“Whether you envision transforming it into a boutique hotel or redeveloping it into stylish residential apartments (STCA), this property is poised for significant growth,” Mr Shiplee said.
The motel’s ideal setting is just 500 meters from Port Macquarie’s bustling retail, dining and entertainment scene.
4-star waterfront motel, restaurant and bar – Rockhampton City, Queensland
Price guide: For sale by auction
Motel 98 is a 4-star establishment in Rockhampton. Picture: realcommercial.com.au
One of Rockhampton’s most renowned and popular motels has hit the market.
Motel 98 is a four-star establishment with a lauded waterfront position looking over Fitzroy River.
With 28 rooms set in a tropical garden oasis, the exceptional property also features a resort style pool, the popular ‘Skyrings’ restaurant and bar and three-bedroom manager’s residence.
The long established, strong trading accommodation asset has upward of 91% occupancy and a net income of $408,531 each year.
A secure high-profile investment with a long-term, landlord-friendly lease until 2050, the prime 3,040sqm freehold site is also high-rise zoned for up to 12 storeys (STCA).
Motel 98 will be sold via auction at 10.30am on Tuesday 18 February at the Sydney Opera House.
