Lease and operate a motel

Rent an existing motel from its owner and run it, a lower-cost way in than buying the property.

Startup cost$20k to $100k
Monthly revenue$10k to $40k
Time needed50+ h/week
First incomeMonths
  • $20k-100k
  • Full-time
  • Own premises
  • Licence or permit needed

Estimates for a small start in the US, not guarantees.

Official data

55,895 US businesses with employees in this field, -1.8% in a year

NAICS 721110 “Hotels (except casino hotels) and motels”. Source: U.S. Census Bureau, County Business Patterns 2023.

What it is

Instead of buying the property, you sign a lease or management agreement with the motel owner and operate the business day to day: guests, rooms, staff and upkeep.

Your first three steps

  1. Look for owners who want to lease or step back from a motel, through local commercial brokers and listing sites
  2. Ask for two or more years of income records and review them with an accountant before talking terms
  3. Have a business attorney review the lease, especially who pays for repairs, taxes and insurance
Who pays

Travelers, traveling workers and longer-stay guests who want simple, affordable rooms close to their car.

How it makes money

Nightly and weekly room rates, minus rent to the owner and running costs. Your profit depends on the lease terms and how well you keep rooms filled.

Skills that help
  • Customer service
  • Organizing housekeeping and shifts
  • Handling cash and basic bookkeeping
  • Negotiating a fair lease
Watch out for
  • Lease terms: length, rent increases, repair duties and what happens if the owner sells
  • Who holds the lodging license and permits, so check with your state and city or county whether they transfer to you
  • Lodging or occupancy taxes and sales tax registration, so check your state and local rules
  • General liability insurance, plus workers' compensation once you hire
  • Run-down rooms that need upgrades, which you may have to pay for without owning the building
  • Long hours and being on call, since guests arrive day and night

Deep research report · US

Everything you need to start: lease and operate a motel

Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to lease and run a motel?

Startup costs are typically around $20,000 to $100,000, depending on the lease terms, deposits and any room upgrades you have to fund. Check who pays for repairs before you sign, since you won't own the building.

How much revenue can a leased motel bring in?

Monthly revenue is typically estimated at around $10,000 to $40,000, depending on the motel's size, location and how full it is. That is revenue before rent, staff and upkeep, so work out your costs before signing.

What licenses and rules should I check before leasing a motel?

Check who holds the lodging license and permits, and ask your state and city or county whether they transfer to you. Also check lodging or occupancy taxes, sales tax registration, and insurance, including workers' compensation once you hire.

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