However, the buildings are not owned, but leased. The current lease expires in three years, but there are options for at least two further five-year terms in place. The current lease costs $50,000 per annum in rent. The motel has 15 rooms, 10 of which are double or twin rooms. There are a further three rooms with a third single bed, and the remaining two rooms are family rooms that will take four to five people. The motel is graded as a three-star facility, with tariffs for a double room being around $120 per night. There is a two-bedded residence for the manager as well. A full breakfast menu is provided at a charge as part of the motel service.

The statement that is provided by the real estate agent includes the following information:

1. The business has been in operation for 10 years.

2. Total gross income recorded for the last year is $200,000.

3. Regular costs of servicing the units, including laundry, cleaning, etc., amounted to $35,000.

4. Total operating expenses for the year are $130,000.

5. Interest and financing costs were $2,000.

6. Depreciation was $5,000.

7. Profit was estimated to be $28,000.