Believe it or not, more and more investors are quietly scooping up every motel for sale in Ontario they can find. They’re discovering a hidden corner of the real estate world where low overhead meets high returns—and the charm of the open road turns into serious monthly cash flow.
The Unexpected Goldmine Hiding in Plain Sight
When most people think about investing in real estate, they imagine luxury condos, rental apartments, or pre-construction townhomes in urban jungles. Rarely do they picture a roadside motel nestled between pine forests and provincial parks. But in Ontario, that’s exactly where some of the savviest investors are making serious money.
Ontario motels—yes, motels—are quietly outperforming expectations. They’re not just surviving in a digital age of Airbnb and boutique hotels—they’re thriving.
Why? Because they sit at the intersection of a few powerful trends:
- A domestic travel boom, fueled by post-pandemic wanderlust and cost-conscious Canadians.
- Rising property values in even remote parts of Ontario.
- A growing appetite for passive income and alternative investments.
The result? Modest-looking motels are turning into unexpected cash machines.
Who’s Staying in Ontario Motels These Days?
Gone are the days when motels were only for weary truckers or traveling salesmen with nowhere else to go. Today, Ontario’s motels cater to a new wave of guests:
- Urban escapees from Toronto or Ottawa looking for weekend nature trips.
- Construction crews and workers on long-term contracts in rural areas.
- Budget travelers skipping pricey hotels for practical comfort.
- Digital nomads seeking solitude and Wi-Fi in the wilderness.
The beauty of the motel model is its versatility. With as few as 6–12 rooms, many are fully booked in peak seasons and require minimal staff. Some owners even live on-site, cutting down costs dramatically.
How Much Money Are We Actually Talking?
The numbers can be jaw-dropping—especially when you compare them to traditional rentals.
Let’s say you purchase a 10-room motel in Northern Ontario for around $800,000. After moderate renovations and a solid marketing strategy (hello, Google Reviews and a decent website), you’re charging $120 per night per room.
- At full capacity: That’s $1,200 a night.
- Monthly: Around $36,000 (assuming 75% occupancy).
- Yearly gross revenue: Close to $400,000.
Even after expenses like cleaning, taxes, insurance, and occasional repairs, many motel owners report net profits of 25–40%.
Now compare that to a downtown Toronto condo bringing in $2,500 a month in rent (before property taxes, maintenance fees, and insurance). Motels offer more control, more cash flow, and frankly, more adventure.
The Hidden Upside: Lifestyle + Legacy
Beyond the numbers, there’s something inherently romantic about owning a motel.
You’re not just investing in bricks and mortar—you’re curating experiences. Watching guests check in after a long drive, hearing stories from travelers, helping someone find the best local diner—it’s a lifestyle business wrapped in a real estate deal.
Many motel owners turn it into a family affair. Kids help with check-ins, partners run breakfast service, and over time, the property becomes more than a business—it becomes a legacy.
Where Are People Finding These Motel Deals?
Here’s the secret: not all of them are listed on the usual real estate platforms.
If you’re serious about entering this niche, HomesEh is one of the best places to start. Their curated listings of motels across Ontario range from turnkey operations to hidden gems needing a bit of love. It’s where many current owners first found their goldmine.
And since HomesEh specializes in Canadian real estate, their platform is tailored to local buyers—not just international speculators looking for short-term flips.
How to Make It Work (Without Losing Your Shirt)
Buying a motel isn’t like buying a house or duplex. You need to approach it with equal parts business savvy and hospitality mindset.
Here’s what smart investors do:
1. Run the Numbers Like a Business
Look beyond the asking price. Dive into operating costs, occupancy rates, and seasonal income. Always request past 2–3 years of financials if available.
2. Think Renovation ROI
Small upgrades—like new linens, keyless entry, or a better website—can dramatically improve booking rates. But don’t overdo it. This isn’t a boutique hotel.
3. Get to Know the Community
In smaller Ontario towns, reputation is everything. Building relationships with locals, contractors, and returning guests can pay dividends for years.
4. Market Smart
Set up your Google Business profile. Claim your spot on booking platforms. Keep your reviews honest and personable. Even the most humble motel can sparkle online with the right digital touch.
5. Consider Owner-Occupied Models
Living on-site reduces staffing needs and builds equity faster. Many investors do this for the first few years before handing operations off to a manager.
Hot Zones: Where Motels Are Thriving in Ontario
While deals can be found province-wide, here are a few areas seeing particular investor interest:
- Muskoka & Kawarthas: Cottage-country charm and steady seasonal traffic.
- Sudbury & Timmins: Mining and infrastructure projects keep crews coming.
- Niagara Region: Tourism overflow and cross-border travelers.
- Bruce Peninsula: Gorgeous views and nature-driven visitors.
- Northern Highway Corridors (e.g., Trans-Canada): Constant flow of long-distance drivers.
These areas offer both reliable occupancy and potential for property appreciation over time.
Why This Is Still Under the Radar (But Won’t Be for Long)
Motel ownership in Ontario isn’t a secret because it’s not valuable—it’s a secret because it looks boring. It doesn’t sparkle like a new condo tower or make headlines like short-term rental bans in Toronto.
But smart investors know that the best opportunities often look a little dull at first glance. And while the rest of the market chases trendy investments, Ontario’s motels are quietly turning into high-yield, cash-flowing assets with soul.