We had our motel on the market a couple of years ago and it didn't seem inclined to be sold, plus our lease was getting down toward 15 years so we made the decision to stay put, extend the lease another 10 years and refurb the rooms. This is involving 'brightening up' 40 year old bathrooms, new beds, curtains, plus all the other soft furnishings and fittings including light fittings and switches/powerpoints followed at the end of it all by carpet. The total cost for each room is probably around $4500 per room and I shudder to think what that may be if I bring tradesmen into it. The only tradesmen I have used is the carpet layers. The refurb time is measured in years (19 rooms) rather than weeks.
If we were in the position to do it I wouldn't do any of it.
With hindsight, I wouldn't have a leasehold again but we are committed so we have to make the best of it.
A word of experience to would-be leasehold buyers: unless you are quite fortunate or very astute you are buying a depreciating asset. Don't buy a lease on a motel that needs work unless it is ridiculously cheap and, if you possibly can, buy a freehold. Don't listen to the crap from brokers about how good a lease is, they are working for the landlord. Negotiate the terms of the lease.....just because they talk about a 'standard lease' doesn't mean you can't require the landlord to pay land rates, building insurance, and commit them to spending x per year on improvements. If someone had given me that advice 10 years ago we would be a lot better off now.