Are you interested in purchasing a hotel or bed & breakfast in Costa Rica? There are several reasons why purchasing an existing hotel or bed & breakfast is the smart choice and we’ve highlighted our top 6 reasons below.
1. Branding. Finding a hotel with an established name and brand facilitates your marketing and allows you to focus on target marketing rather than investing large amounts of your budget in name recognition or building awareness in your market.
2. Financials. Established hotels have financial history which is crucial in preparing budgets, procuring financing, and evaluating return on investment.
3. Cash Flow. Cash is king in Costa Rica and benefits of established cash flows to help meet immediate short-term liabilities cannot be overstated owner in Costa Rica. Short-term financing and commercial loans can be a bit more tedious in Costa Rica, so you’ll be appreciated of the extra comfort.
5. Assets. Most established hotels for sale in Costa Rica include many of their assets in the sale, which can be very valuable. While it may be fun to hire an interior designer or select great commercial grade kitchen equipment, once you look at the cost and logistics, having those assets in place ensures a turn-key purchase and you can hit the ground running.
6. Marketing Channels. Building a referral network from tour operators and marketing channels to drive your occupancy rates takes time and involves building a reputation relying on the branding and history. Trying to build this from scratch takes a lot of cash and patience, which adds to the risk for starting a new project. In many cases, hotels for sale in Costa Rica have developed a loyal following and successful networks to keep the beds occupied.
If you are planning to explore the idea of purchasing a hotel or bed & breakfast in Costa Rica, we encourage you to give existing hotels for sale a serious look and work with an experienced broker who will help you make a thorough evaluation of the property and potential return on investment.
We have a combined 40 years of experience in Costa Rica real estate market working with clients from all backgrounds in on all types of real estate transactions from multi-million dollar to the small boutique hotel. Take advantage of our expertise and resources to ensure a safe Costa Rican investment.