Around mid 1956 one of the local Dubbo builders started construction on the first stage of the Blue Lagoon for the Travelodge group in Sydney, this would be only the second motel in Dubbo and Central New South Wales. It would be bought by the Mendom family in the late '60's and again by the Townsend family, some where in the early 80's.

The motel ran into difficult times and was sold at auction to the Webb family in 1994, who are the present owners. A general internal refurbish took place the following year. The old Restaurant was literally demolished and rebuilt in 2000, now the rooms are again having a complete refurbish and the whole motel has a new pitched roof as an ongoing program of upgrading.

The 2 storey motel has 55 rooms of a variety of bed configurations, a superb 100 seat A-La-Carte Restaurant, a brand new swimming pool to replace the old one and fresco outdoor dining planned for the near future. Reception is staffed with attentive and professional personnel and open from 6:30am till 10pm 7 days a week, our night bell is answered and serviced at any time through the night.