Buying a motel in BC means buying a business as much as a building — the due diligence checklist reflects that from the start.
Financial Performance, Not Just the List Price
Review at least three years of financial statements, occupancy rates by season, average daily rate (ADR), and revenue per available room (RevPAR) to assess true profitability — a motel's seasonal swings can make a single year's numbers misleading on their own.
Licensing and Permits
Confirm exactly which business licences, health authority permits, liquor licences (if applicable), and tourism accommodation compliance requirements transfer with the sale versus need fresh applications under your ownership — this can materially affect your closing timeline.
Zoning and Land Use
Confirm the property is properly zoned for hospitality use, and understand any restrictions on future expansion or rezoning potential if that factors into your investment plan.
Physical Condition and PIP Requirements
For branded properties, understand any Property Improvement Plan (PIP) requirements tied to the brand affiliation, along with deferred maintenance and whether the capital reserve is adequate for near-term repairs.
Staffing and Operational Continuity
Review staffing levels and management structure, and think through how operations continue through the ownership transition — a motel with strong repeat business can lose momentum fast if service quality dips during a changeover.
Financing Looks Different Here
Hospitality financing evaluates the operating business's income and management track record alongside the real estate itself — a different conversation than a standard commercial mortgage, so start that conversation with a lender who understands the category early.
Fraser Valley hospitality demand is real — from Harrison Hot Springs and Cultus Lake tourism to steady Highway 1 corridor motel traffic. Manan can walk through what solid due diligence looks like for a specific property.