By pouring over the
The table below records the
number if motels with 15 or more rooms in each major country town,
their occupancy rate, average tariff and accommodation revenue per
room available for the 2012/13 financial year.
| New South Wales Motel Statistics | ||||
| Financial Year 2012/13 | ||||
| Annual | ||||
| Accomm | ||||
| Motels | Occupancy | Average | Rev | |
| Town | 15 rms + | Rate | Tariff | Per Room |
| Sydney | 283 | 79.4 | $195.50 | $56,684 |
| South Coast | ||||
| Batemans Bay | 18 | 43.9 | $130.74 | $20,942 |
| Bega - Tathra | 4 | 55.3 | $139.33 | $28,137 |
| Eden | 7 | 35.5 | $109.60 | $14,207 |
| Merimbula - Tura Beach | 17 | 44.2 | $96.60 | $15,570 |
| Moruya - Tuross Head | 3 | 27.5 | $93.82 | $ 9,431 |
| Narooma - Bermagui | 6 | 54.5 | $120.72 | $23,999 |
| Berkeley - Warrawong - Windang | 3 | 26.0 | $114.40 | $10,837 |
| Kiama | 5 | 60.6 | $162.00 | $35,820 |
| Kiama Hinterland - Gerringong | 4 | 43.3 | $140.01 | $22,140 |
| Shellharbour - Flinders | 3 | 42.6 | $124.49 | $19,374 |
| Wollongong | 19 | 62.1 | $152.47 | $34,556 |
| Berry - Kangaroo Valley | 4 | 35.0 | $173.62 | $22,163 |
| Huskisson - Vincentia | 4 | 51.4 | $136.52 | $25,601 |
| Nowra | 8 | 59.7 | $109.20 | $23,802 |
| Ulladulla | 10 | 51.5 | $188.59 | $35,450 |
| Total South Coast | 115 | 48.8 | $136.60 | $24,324 |
| Snowy Mountains | ||||
| Cooma | 8 | 40.5 | $108.08 | $15,979 |
| Jindabyne - Berridale | 44 | 27.9 | $235.17 | $23,930 |
| Tumbarumba | 3 | 35.9 | $91.00 | $11,920 |
| Total Snowy Mountains | 55 | 30.3 | $196.91 | $21,784 |
| Capital Country | ||||
| Goulburn | 12 | 67.5 | $103.45 | $25,503 |
| Yass | 6 | 63.8 | $110.24 | $25,668 |
| Young | 4 | 54.3 | $101.40 | $20,099 |
| Queanbeyan | 11 | 53.8 | $120.89 | $23,742 |
| Bowral | 9 | 50.8 | $161.58 | $29,974 |
| Mittagong | 5 | 53.9 | $132.28 | $26,023 |
| Total Capital Country | 47 | 55.6 | $123.82 | $25,134 |
| The Murray | ||||
| Albury - South | 29 | 58.1 | $124.35 | $26,372 |
| Albury Region | 3 | 58.7 | $87.50 | $18,762 |
| Lavington | 4 | 55.3 | $120.61 | $24,328 |
| Wentworth - Buronga | 10 | 32.3 | $76.21 | $8,975 |
| Wentworth-Balranald Region | 6 | 39.9 | $105.57 | $15,389 |
| Corowa | 6 | 26.7 | $106.84 | $10,428 |
| Corowa Region | 5 | 61.7 | $115.00 | $25,916 |
| Deniliquin | 8 | 40.6 | $79.61 | $11,807 |
| Deniliquin Region | 8 | 47.7 | $87.99 | $15,310 |
| Moama | 11 | 57.2 | $114.59 | $23,935 |
| Tocumwal - Finley - Jerilderie | 17 | 32.5 | $94.46 | $11,197 |
| Total The Murray | 107 | 48.4 | $110.28 | $19,481 |
| Riverina | ||||
| Hay | 6 | 50.5 | $106.33 | $19,586 |
| Griffith | 11 | 50.8 | $108.36 | $20,102 |
| Leeton | 3 | 47.6 | $95.99 | $16,668 |
| Narrandera | 6 | 42.2 | $95.70 | $14,754 |
| Cootamundra | 5 | 54.0 | $100.28 | $19,770 |
| Gundagai | 7 | 52.5 | $93.62 | $17,933 |
| Wagga Wagga | 26 | 67.6 | $136.55 | $33,679 |
| Total Riverina | 64 | 56.4 | $116.25 | $23,934 |
| Central NSW | ||||
| Bathurst | 14 | 52.2 | $139.65 | $26,592 |
| Cowra | 7 | 41.7 | $107.66 | $16,370 |
| Forbes | 6 | 48.8 | $106.79 | $19,007 |
| Parkes | 9 | 59.2 | $106.74 | $23,067 |
| West Wyalong | 8 | 45.5 | $85.00 | $14,129 |
| Mudgee | 8 | 70.6 | $128.06 | $33,015 |
| Orange | 11 | 66.2 | $125.45 | $30,316 |
| Coonabarabran | 11 | 43.4 | $102.93 | $16,314 |
| Dubbo - East | 3 | 69.2 | $116.29 | $29,372 |
| Dubbo - South | 21 | 56.3 | $117.78 | $24,189 |
| Dubbo - West | 10 | 57.3 | $110.21 | $23,047 |
| Gilgandra | 5 | 36.9 | $92.20 | $12,432 |
| Narromine | 3 | 47.6 | $74.02 | $12,874 |
| Total Central NSW | 116 | 54.6 | $115.26 | $22,951 |
| Hunter | ||||
| Branxton - Greta - Pokolbin | 13 | 58.2 | $191.91 | $40,776 |
| Cessnock | 7 | 47.4 | $110.42 | $19,091 |
| Singleton | 8 | 57.5 | $149.64 | $31,431 |
| Maitland | 3 | 58.9 | $151.12 | $32,485 |
| Maitland - West | 3 | 68.3 | $126.54 | $31,547 |
| Muswellbrook | 8 | 56.4 | $134.53 | $27,694 |
| Scone | 5 | 61.2 | $106.76 | $23,830 |
| Scone Region | 4 | 47.6 | $93.77 | $16,294 |
| Charlestown - Dudley | 4 | 57.9 | $137.96 | $29,153 |
| Mayfield - Warabrook | 5 | 57.2 | $112.90 | $23,580 |
| Newcastle - Cooks Hill | 9 | 73.8 | $168.27 | $45,328 |
| Total Hunter | 69 | 59.2 | $151.47 | $32,737 |
| North Coast | ||||
| Coffs Harbour - North | 15 | 57.2 | $121.74 | $25,399 |
| Coffs Harbour - South | 16 | 55.9 | $119.96 | $24,468 |
| Woolgoolga - Arrawarra | 4 | 61.7 | $96.42 | $21,726 |
| Nelson Bay Peninsula | 14 | 53.5 | $163.19 | $31,862 |
| Raymond Terrace | 3 | 46.4 | $126.50 | $21,428 |
| Tea Gardens - Hawks Nest | 5 | 59.3 | $106.28 | $23,020 |
| Bulahdelah - Stroud | 3 | 50.5 | $100.90 | $18,593 |
| Forster | 10 | 44 | $142.20 | $22,857 |
| Macksville - Scotts Head | 3 | 43.3 | $109.25 | $17,286 |
| Nambucca Heads | 3 | 53.6 | $99.44 | $19,453 |
| South West Rocks | 3 | 43.9 | $107.57 | $17,247 |
| Port Macquarie - East | 22 | 61.8 | $145.16 | $32,720 |
| Port Macquarie - West | 8 | 63.6 | $124.69 | $28,931 |
| Old Bar - Manning Point - Red Head | 4 | 51.1 | $162.49 | $30,322 |
| Taree | 15 | 50.6 | $97.93 | $18,105 |
| Total North Coast | 128 | 54.7 | $133.43 | $26,618 |
| New England North West | ||||
| Armidale | 16 | 60.0 | $117.65 | $25,781 |
| Glen Innes | 6 | 47.4 | $89.23 | $15,441 |
| Inverell | 5 | 47.5 | $108.13 | $18,746 |
| Tenterfield | 10 | 37.4 | $97.14 | $13,264 |
| Moree | 12 | 57.6 | $93.03 | $19,561 |
| Narrabri | 7 | 67.2 | $112.44 | $27,559 |
| Gunnedah | 6 | 60.1 | $100.92 | $22,121 |
| Tamworth - East | 6 | 42.8 | $105.38 | $16,461 |
| Tamworth - North | 20 | 55.5 | $139.77 | $28,325 |
| Total New England North West | 88 | 54.2 | $113.14 | $22,380 |
| Outback | ||||
| Bourke - Brewarrina | 3 | 62.1 | $152.98 | $34,690 |
| Nyngan - Warren | 6 | 66.3 | $81.74 | $19,789 |
| Walgett - Lightning Ridge | 5 | 48.5 | $88.29 | $15,630 |
| Broken Hill | 13 | 59.0 | $118.25 | $25,484 |
| Total Outback | 27 | 61.6 | $107.73 | $24,226 |
| Northern Rivers Tropical NSW | ||||
| Grafton | 10 | 49.2 | $110.86 | $19,913 |
| Maclean - Yamba - Iluka | 8 | 58.4 | $161.29 | $34,361 |
| Ballina | 12 | 56.1 | $121.05 | $24,774 |
| Byron Bay | 14 | 66.0 | $213.84 | $51,518 |
| Casino | 4 | 44.4 | $98.34 | $15,952 |
| Lismore | 8 | 43.8 | $107.30 | $17,173 |
| Kingscliff - Fingal Head | 6 | 58.5 | $132.92 | $28,364 |
| Pottsville | 4 | 42.7 | $110.71 | $17,244 |
| Tweed Heads | 8 | 59.4 | $124.97 | $27,074 |
| Tweed Heads - South | 4 | 53.0 | $87.05 | $16,826 |
| Total Northern Rivers Tropical NSW | 78 | 54.5 | $139.34 | $27,742 |
| Central Coast | ||||
| Gosford - Springfield | 7 | 53.9 | $111.68 | $21,982 |
| Terrigal - North Avoca | 5 | 66.7 | $212.12 | $51,615 |
| Wamberal - Forresters Beach | 3 | 36.8 | $124.17 | $16,684 |
| The Entrance | 11 | 50.8 | $198.54 | $36,834 |
| Total Central Coast | 26 | 51.4 | $167.87 | $31,493 |
| Blue Mountains | ||||
| Lithgow | 6 | 62.8 | $123.15 | $28,224 |
| Blackheath - Megalong Valley | 3 | 34.8 | $133.27 | $16,904 |
| Katoomba - Leura | 17 | 53.0 | $168.30 | $32,574 |
| Total Blue Mountains | 26 | 50.7 | $185.05 | $34,253 |
| New South Wales | 1,388 | 65.2 | $169.83 | $40,410 |
| Country NSW (NSW less Sydney) | 1,105 | 52.4 | $134.95 | $25,818 |
It is important to remember
that these statistics are averages only.
In a city like Grafton, for example, the average occupancy
rate in 2012/13 was 49.2%, the average tariff was $110.86 and
average accommodation revenue generated by each room was $19,913.
At the times of writing (May 2014) the NRMA records 2 x 4
star motels, 4 x 3½ star motels and 4 x 3 star motels.
If Grafton follows the pattern discussed in Section 2, then
it is likely that the 4 star properties are enjoying occupancy rates
closer to 60% than 49.2%, the 3½ star properties are around the
average, and the 3 star properties have occupancy rates below 49.2%.
The NRMA website records
tariffs for the 4 star properties as $125 plus.
The 3½ star motels have tariffs starting at $70, $78, $91 and
$106, and the 3 star properties have tariffs of $69, $69, $77 and
$95.
I have just read a valuation
report that suggests a Wagga Wagga motel is overpriced, because its
price per room is higher than the price per room achieved in a
recent Lismore sale. On
the figures above, this conclusion is clearly absurd.
There is no such thing as a
good motel town or a bad motel town.
Motels generate revenue in accordance with the supply and
demand for accommodation.
The important things to note when considering a motel
purchase are the current return on investment and the expected
future return on investment.