With evidence to show that Costa Rica’s South Pacific real estate industry is performing well, I decided to offer my insights into one particular area that I feel is driving sales in this region.
With reports that arrivals are up in Costa Rica – tourism continues to generate a significant income for the country and, in turn, many investors are snapping up coastal real estate in the South Pacific.
Costa Rica Hotels Selling in the South
Recent sales in the South Pacific support our belief that hotel and tourism related businesses are a hot commodity. In the first 7 months of 2013, we sold the following hotel properties; Tirol, Tiki Villas, Whales & Dolphins, and Cerro.
Tourism in Costa Rica continues to be one of the main sources of income for the country. This is an excellent indicator if you are looking to start up your own business and are not sure which industries are showing healthy growth.
In 2012 Costa Rica received a total of 2.34 million visitors which accounted for a 6.9% increase compared to 2011. According to the Costa Rican Tourism Institute (Instituto Costarricense de Turismo (ICT), 2012 registered the most visitors since 2007. Another important statistic shows an 11.7% or $232 million increase in tourism related income between 2011 and 2012.
Families and Couples Acquiring Costa Rica Hotels and Bed & Breakfasts
In terms of identifying a trend in who is buying these hotels and Bed & Breakfasts; I can say that they are mostly families and couples. They have done their research and know about the South Pacific and our growing tourism industry. Buyers are mostly coming from Canada and the U.S and I would attribute this to several factors. The US economy is bouncing back as is the US real estate industry and Costa Rica continues to be highlighted as a top location for investment in the international media. Hotels for sale in the South Pacific can range from $400k to $5m depending on size and proximity to the beaches.
Location, Location, Location
Overall the number one tourism attraction in the world is the beach and it makes sense that the South Pacific beach towns of Ojochal, Uvita, and Dominical are experiencing increased hotel and Bed & Breakfasts sales. Most of the hotels purchased are doing well and are generating income even with some room from improvement in marketing and operations.
Many investors are clear on the benefits of acquiring an already existing hotel that may need some work. An established brand, existing clientele, furniture, and equipment included make these turn-key investments attractive. Investors can focus on improving operations and marketing to grow existing revenues and improve their returns quickly.
My 3 South Pacific Hotel Picks
These are three hotels that are currently on the market and which I feel are excellent investments.
– A Beach and jungle hotel in Pavones, 7 bedrooms, 9 bathrooms, stunning swimming pool on the market for $1.8m
– Dominical Bed Breakfast, 10 bedrooms, 10 bathrooms, year contract with Spanish Language School nearby $549K
– Costa Ballena Boutique Hotel, 27 bathrooms, 26 bedrooms, fantastic swimming pool, surrounded by tropical jungle views. Listed for $4.95m