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Sale of a Motel Business

Another key practice area is acting for those who are selling a motel business. We have experience in working with small first timers, all the way through to large corporates with multiple motel interests.

While a motel sale does not require a legal due diligence investigation, it needs:

  • ensuring that the landlord has not exercised their option (if any) to buy the business
  • issues with figures and renegotiations;
  • legal due diligence questions and answers from the purchaser;
  • issues with valuation and finance;
  • issues with clauses of the lease and extensions of term;
  • assignment of any chain or franchise agreements;
  • the landlord trying to unreasonably (or even reasonably) withhold consent to the assignment of the lease; and
  • dealing with any right of entry document required by the buyer. 

All of these aspects and issues need to be managed correctly.

Right of entry documents

If the buyer of a motel business is borrowing money to do that their financier will normally require the landlord to the business to enter into a document that allows that financier to step into the shoes of the motelier in the event of default.  These documents are not standard and need to be negotiated for landlords to make sure that there is a fair balance of the rights and entitlements of each party.


Expert motel lawyers

Frank Higginson

Frank Higginson


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Manufactured Home Parks