Regional Australia is experiencing strong tourism growth of more than five per cent per annum over the past ten years, but motel supply has largely remained stagnant.

Regional motels are mostly individual owner owned and managed, with the largest group owning less than four per cent of market share by number of rooms, indicating substantial scope for consolidation.

Individual owned motels generally perform below potential due to poor management and lack of capital investment to maintain the asset offering opportunities for purchases at 30 – 50 per cent below replacement value. The motel’s operating performance and valuation can be significantly improved with minimal capital expenditure and operational improvements driven by the Redhill Hospitality Management team.