If you want to learn more about the accommodation sector, you can explore Quest Apartment Hotels: https://www.questapartments.com.au
In this episode, Trudy sits down with David Toomey to unpack why he believes the motel sector offers one of the strongest risk‑return profiles in Australia. From his private equity background and a $2.1B NASDAQ listing to building a national motel fund, David breaks down the economics, the scale advantages and the operational levers shaping the industry.
This episode covers:
◼️ Why property‑backed motels can deliver a 25% IRR
◼️ How diversification across motels reduces overall risk
◼️ The macro forces lifting regional accommodation demand
◼️ Why four‑star corporate motels create steadier revenue
◼️ How operational changes drove a 10–15% uplift
Timestamps:
00:00:00 - Introduction
00:01:35 - Guest Introduction: David Toomey
00:02:22 - David's Background and Career Path
00:04:06 - Transition to Australia and Tritium
00:05:33 - Identifying Opportunities in the Motel Industry
00:08:47 - Risk-Return Profile of Motels
00:09:34 - Market Trends and Population Growth
00:10:33 - Fund Structure and Acquisition Goals
00:11:56 - Investment Criteria for Motels
00:12:53 - Brand Strategy and Quality Focus
00:14:42 - Investor Participation and Fund Structure
00:16:10 - Comparison with Other Investment Models
00:17:01 - Fund Management and Governance
00:18:15 - Projected Returns and Investment Strategy
00:20:08 - Diversification Benefits of the Fund
00:21:44 - Operational Management and Team
00:23:07 - Revenue Optimization Strategies
00:25:08 - Expense Management Techniques
00:26:54 - Challenges in Property Acquisition
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