Fullerton Hotel & Motel Property for Sale

Two miles from Anaheim and 9 miles from Santa Ana, Fullerton provides all the quiet charm of a small city, with the economy and consumer access of a large city. Bordered by so many alternate thriving cities, hotel and motel property owners have seen steady growth over the past few years, with potential for more in the coming decade.

Buying or leasing hotel and motel property is a big commitment, and it requires a thorough knowledge of the industry. Choosing Fullerton as a location to settle your business in, offers access to a population of more than 138,000 individuals, as well as that of nearby towns, and tourists from other states and countries.

While Fullerton doesn’t see as much tourism as the larger cities, being only 25 miles from downtown Los Angeles makes it a economical alternative for travelers to stay just outside the buzz of the big city, while only a short drive from the action. Hotels and motels in the area vary in price, and most experts suggest working with a commercial realtor from the beginning to get the best possibly price point and buying experience.

Fullerton Hotel & Motel Property for Sale & Lease

Things which affect the cost of a hotel or motel in Fullerton include the total square footage of a property, the number of guest rooms on site, and the age of the building. Other factors which are included in the pricing process are special amenities, such as swimming pools, tennis courts, fitness facilities, on-site restaurants and spas, as well as other features.

Just as commercial real estate is graded in a classification system of A, B, and C for buyers, hotels are graded as well. This helps investors to determine the possible resale value in the future, as well as what kind of upgrades need to be accomplished to increase the overall evaluation. Hotels have four tiers of classification in the business world; you can usually gage the grade by how many stars the hotel has received. A rank of 4-5 stars is in the top tier of real estate, while properties with 3 stars are somewhere in the middle, with some room for improvement. Those with 2 stars or 1 star are either subpar or in need of some serious improvements, perhaps both internally and externally. It should be noted, however, while the thought of purchasing a low-grade hotel property may not appear right at first glance, it can be an opportunity for a high turnover if you are willing to put in the necessary work.

If you are leasing a hotel or motel property in the Fullerton area, your ability to remodel and renovate could be limited. Be sure to go over these details in you contract before you sign anything. Most owners are open to renovations as long as the bill is being covered by the lessee, and there is an agreement of how much work is being done at any given time. However, if you’re not planning to own the property long-term, forking out money for renovations can seem counterproductive. So, for renters at least, there is more potential for growth and income in a higher-grade property.

Fullerton Hotel & Motel Property for Sale

In Southern California, the cost of a hotel or motel property fluctuates. On average a buyer could potentially spend anywhere from $1,500,000 for 4,000 square feet to $8,000,000 for 77,000 square feet. This is an approximation, and would depend on the seller, location, size of the property, and additional features.

Buying opens the doors to investment opportunities, such as business profits, portfolio expansion, future resale value, and the option to lease the property to other hospitality business owners. One downside of owning vs. renting is the cost of upkeep and maintenance. Hotels and motels are large properties, which are used regularly by travelers. Normal wear and tear can take a toll on your funds when you have multiple guest rooms to monitor, as well as additional meeting areas, banquet halls, ballrooms, fitness centers, and outside property. It’s a huge financial undertaking, and will require loyal staff.

Fullerton Hotel & Motel Property for Lease

Leasing hotel space in Fullerton is less frequent than buying, but it has benefits, such as the potential to renew or move on once a contract has ended; getting help from the owner with maintenance, renovations, and upkeep, and in some cases, having a predetermined staff and client base. Leasing this type of property usually means it has been well-maintained, and has built a previous reputation which you can expand on.

Leasing a hotel in Fullerton would be a great first step toward owning commercial property in Southern California. It gives you a glimpse into the prospective lifestyle, workload, and income you can expect to see in the future, and it helps you get your foot in the door in terms of building a reputation for yourself.