Why Invest in
Regional Property?
Regional Australia continues to grow
Regional Australia has increasingly become one of the country’s most important economic and investment growth stories.
Over the past decade, regional markets have evolved well beyond their historical reliance on agriculture or seasonal tourism alone. Many regional centres now support diversified local economies built around healthcare, logistics, mining services, infrastructure projects, education, renewable energy, government services and domestic tourism.
At the same time, changing lifestyle preferences, population movement away from major capitals, and continued domestic travel demand have strengthened the long-term outlook for many regional property markets.
Diversified Exposure
One of the strengths of regional motel investment is that income is not usually dependent on one tenant, one lease or one industry.
Revenue may be generated from hundreds or thousands of individual stays each year.
weekday corporate travellers
sporting groups
weekend leisure guests
families visiting regional centres
contractors on regional projects
government and healthcare travel
wedding and event guests
emergency accommodation
Growth in Domestic Tourism
Tourism Research Australia reported total tourism consumption of $211.1 billion in 2024–25. This was 43% higher than the pre-pandemic level recorded in 2018–19.
Domestic overnight travel remains especially important for regional motels.
Tourism Research Australia reported 94 million domestic overnight trips in regional Australia for the year ending December 2024, with domestic overnight travellers spending $74 billion.
Importantly regional motels are generally more exposed to domestic travellers than international tourists. Which means more stable demand, particularly during periods of international travel volatility.
Why Motels for Regional Investment
Many regional property investments depend heavily on long-term capital growth or rental income.
Motels are different.
A motel is an operating business with performance driven by:
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occupancy
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average daily rate
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online distribution
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labour efficiency
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maintenance discipline
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guest experience
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cost control
This creates operational upside that does not usually exist in passive residential or commercial property.
For example, a 40-room motel at 62% occupancy and a $145 average daily rate generates approximately $1.31 million in annual room revenue.
The same 40-room motel at 72% occupancy and a $165 average daily rate generates approximately $1.73 million in annual room revenue.
That is more than $400,000 of additional annual room revenue.