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Property models explained

Before we get started you need to know that buying a motel or other accommodation property comes in different forms so we will set out the basic categories in this section.

The accommodation and hospitality sector presents a range of property and business opportunities. Whether you are entering the industry for the first time, or are an existing owner planning to expand or upgrade, you need to consider the range of property types available, the various models of operation, and which best suits your business, lifestyle and investment goals.

While there are many types of tourism and hospitality properties i.e. motels, hotels, serviced apartments, caravan/tourist parks, backpacker hostels, B&Bs and so on - from an ownership and operational viewpoint, they fall into broadly six categories.

There are five basic forms of ownership, namely:
1. Freehold Going Concern
2. Freehold Investment
3. Business
4. Leasehold Going Concern
5. Management Rights
6. Managed Investments

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