Abstract: | Motels play important role and development in lodging industry in Taiwan. Due to Taiwanese have payed more attention to domestic travel, motel has been segmented via consumer life style, taste and concept change, and motel?s sense, decoration, and price. Thus, motels industry has been promoted into a clear position. This study aims to investigate factors effect on motel?s location selection in Taichung City. First, motels were compiled into a list according to address and position surved by Bureau of Tourism and Global Positioning System. Then, the spatial distribution of motels are from Geographic Information System and Nearest-Neighbor Method. Finally, elements of industry cluster from literatures review and interview. After the investigation several factors were found. First, the spatial distribution in Taichung city is clustered, East district, North district, Nantun district, Setun district, Batun district are clustered, and South district is random. Second, factors of industry clusters that have significant effects on market conditions, traffic conditions, nearby resources in Taichung city, Nantun district, Setun district, Batun district. East district is market conditions, North district are traffic conditions and nearby resources. Governmental Policy, human resource and knowledge spillover have no concern with. Third, factors of location selection are numbers and scale of the competitors, nearby special businesses and resources, access, the traffic flow, land cost, obviousness. Forth, land factor and eight businesses are also relationship with clustering |