Motel Warrnambool and Gateway Motel were razed last year to make way for a JB Hi-Fi and Officeworks, while The Standard understands the Anchor Belle Motel is no longer open to the public.

Sydney's Kelly Adamson and her husband Paul have been attending the Grand Annual Sprintcar Classic in Warrnambool for the past six years.

Mrs Adamson said the couple usually paid about $900 for accommodation for a week, but this year they had struggled to find a vacancy.

The bed and breakfast they stayed at was unavailable and the only accommodation they could find was almost three times the cost.

"We tried so many places, but they were all booked out," Mrs Adamson said.

"A lot of people were saying they were having trouble as well because so many motels have closed.

"We were going to go to Koroit or Port Fairy but by the time we called them, they were booked out."

Mrs Adamson said the couple didn't want to miss the event and she was relieved they had found accommodation.

"We love it," she said.

The couple and their children have been collecting cans and bottles and cashing them in to help cover the cost of the trip.

Premier Speedway general manager Michael Parry said a lot of people planning to attend the classic had been calling to inquire about accommodation.

"We've been fielding a lot of calls from people inquiring about camping at the track, but it's not allowed," he said.

Mahogany Motel owner Marty Williams said he had been flat out over the past few months.

"The demand has been higher," he said.

"We've been getting a lot more calls because there is a bit less accommodation available in Warrnambool than usual."

Mr Williams said some guests said they had previously stayed at the Gateway Motel or Motel Warrnambool.

"We've been booked out most nights," Mr Williams said.

He said occupancy of the motel's 14 rooms had been close to 100 per cent for the last few months of the year.

"People are staying longer as well, which is good for the town," Mr Williams said.

He said the cost of staying at the motel had increased slightly, but guests often commented it was still at a good price point.

The Standard has been contacted recently by a number of visitors to the city complaining about the cost of some motels being significantly higher than in previous years.

Mr Williams said he was confident it would be a busy year for the city as more overseas visitors return to the region.

"Most of our guests at the moment are from Geelong, Ballarat and Melbourne," he said.

Mr Williams said bookings were already flooding in for the next couple of months.

CRE Brokers' Rohan Pertzel told The Standard last week there was demand for more accommodation in the city.

He said there was "absolutely" a need for more motels in Warrnambool after the closure of the two on Raglan Parade.

He said he had sold six motels in Warrnambool in the past 12 months.

"It's a really good motel town, Warrnambool," he said.

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