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  • #6411

    PaulPaul

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      Tell me, my learned friends, what would be the expected average occupancy for a motel today in Australia? I understand there are a number of factors; demographics, location, number of rooms etc but what would be considered an ‘average’? What would be a ‘good’ occupancy? What would be considered a ‘bad’ occupancy? (We manage a 25 room motel near a major city)
      Your feedback would be appreciated..

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      • #8505

        Ash

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          Howie, it depends heavily on your area. We too have run motels in a country town not far from you and achieved a 80% Occ with high rates. I am currently relieving at a motel in the Coffs Coast region and it is dead here. There are some very low rate regulars and an Occ of 50%. I would consider dropping the rates to increase the Occ. However, 50% is good for where you are.

          • #8507

            howie

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            • Topics Started 3
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              So we have increased our occupancy slightly to about 65% but we have raised prices by 20% so all in all 18 months down the track since our last post on this topic we are pretty happy with how its going , better occupancy with higher rates.
              Since then we have installed a self checkin machine and that is getting us on average 8 after hours walkups each week that we wouldnt get and dont have to doo anything to attract , they justturn up in the middle of the night and choose a room , pay for it and receive the keys. But it allows us to shut a lot earlier and have much more flexible office hours

            • #8506

              howie

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              • Topics Started 3
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                So we have increased our occupancy slightly to about 65% but we have raised prices by 20% so all in all 18 months down the track since our last post on this topic we are pretty happy with how its going , better occupancy with higher rates.
                Since then we have installed a self checkin machine and that is getting us on average 4 after hours walkups that we wouldn`t get. But it allows us to shut a lot earlier and have much more flexible office hours

            • #6422

              PaulPaul

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              • Topics Started 25
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                We are now running at 85% occupancy average (25 rooms within spitting distance of Brisbane). When we took over it was running around 70% but we’ve ‘tweaked’ a few things and people can’t seem to get enough of us now! Perhaps it’s time we put the prices up?

                • #6430

                  howie

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                  • Topics Started 3
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                    I would be looking at putting up your prices especially if you aren`t getting negative reviews. At that occupancy even if you put them up $2 a night it works out round 14,000.00/year ( have a nice holiday and pay for relif managers in one).

                • #6415

                  howie

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                    Hi Paul , we have a motel in Euroa(castle creek motor inn) , 1.5 hrs north melbourne on the hume hwy , ours runs at about 50% to 55%, its an older style motel that we have refurbished completely. We have a lot of stopovers from sydney , canberra, wagga etc.
                    We also get the work crews for the roads/ railway line and plenty of tradies etc.
                    But we also have alot of weddings during the warmer months. There are 3 motels in town of 2200 population and i think all 3 motels run about the same occupancy .
                    Of course it depends where you are but if you work round those figures i think it would be around the mark.
                    If you get up around the 60 to 70% mark with no bad reviews they say you should put your prices up.
                    Last year we had 70% but that was because of a large project happening in the area, so we just treated that as a bonus and gave ourselves a bonus holiday.
                    Just my thoughts on the subject , others may have a better idea

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