Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development?

Answer 1

Perhaps other businesses can make far more money on this land than the motel can make.

Answer 2

Another business may make far more money on this land than the motel can make. Another aspect to consider is the motels property tax may go up far more that the motel can support. They need to look and see if how much their profit is and see how much the land could sell for in comparison to. Will their profits go up with the new businesses around them or will they go down?