Mon. Sep 30th, 2024
Occasional Digest - a story for you

Around Australia, a growing number of motels are becoming custodians of vacant spaces.

Restaurants once filled with guests are now being used as storage, conference rooms, or common areas with hidden industrial kitchens often sitting idle.

Accommodation Australia CEO Michael Johnson says while some motels continue to operate restaurants and serve breakfast, the organisation has overwhelmingly seen a trend towards their closure for years.

“It’s been on a steady decline for some years,” he says.

“Certainly in the 60s and 70s when we built a lot of motels, it was the heyday.

“But we’re not building motels anymore.”

Mr Johnson says while motels still service a massive part of the accommodation market, particularly in regional towns, fewer motels are operating built-in restaurants.

“There are not too many motels now that are operating the restaurants or if they are they’ve cut back their operating hours substantially,” he says.

“What we found today is a lot of motels would rather see you use external restaurants. And they’ll just take room revenue as their bread and butter, because of the expense of running a restaurant.

“If you don’t have a local market, your in-house market for a motel will not be enough to make it profitable. 

“It’s also so difficult to get a good chef to come and live in a remote location, or regional locations where the motels are — so many of those restaurants are now meeting rooms.”

A black and white picture of a busy motel dining room in 1962, staff can be seen waiting on tables and serving.
Guests dine in at the Motel Parkroyal, Parkville, Melbourne in 1962.(Supplied: Wolfgang Sievers, State Library Victoria)

‘The good old days’

According to Accommodation Australia, in 1985 there were about 2,700 motels in Australia but only about 2,400 now.

This is evident in a photograph by Australian photographer Wolfgang Sievers, which depicts a full dining room in a Melbourne motel bustling with activity.

“It was the good old days where you checked into your motel, you had to make a booking for your dinner, and everyone in the motel pretty much dined in the restaurant because there was nothing else on offer, but now there are more offerings out there,” he says.

“There was always that romance but then everyone works out that the accommodation is not that difficult to run, but geez the restaurant is difficult.

“Cost of food and beverages have gone up to the extent where you’ve got to be doing solid numbers to make a dollar. Otherwise, your rooms are making money and they’re just subsidising your restaurant, which is losing money.”

Mr Johnson says even without restaurants, a post-COVID boom in domestic travel has benefited motels Australia wide and he does not expect their presence on the market to go away any time soon.

A man in a t-shirt holding a light pole next to a swimming pool

Sachin Gupta says more food businesses have opened near his motel over the years.(ABC Goulburn Murray: Jason Katsaras)

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