Yes you will, a long with all the others motel owners, of course there will be a price war among all motel owners in your areas, you may undercut them just to stay full. You may work with shorter staff, and use cheaper towels and sheets. You will get it one way or another.
Oh, to the contrary. Instead of working with fewer staff, I will use more staff! Instead of cheaper linens, I will use more expensive linens! And I will rotate them out of use more often! I will provide better quality tangibles, and better quality service. That is how I will stay full when other hotels in the area are only at 70% occupancy. In fact, my hotel sets the rates for our comp. set, and leads occupancy while doing so.