Searching for Hotels

[ChrisH]

My partner and I are interested in buying a hotel on the pacific side.  We want to keep a purchasing budget of 650K.  Any advice for United States citizens on buying hotels in Costa Rica?  I would appriciate any comments.

[Jogi]

Hi Chris,

You can definitely find properties in that price range along the coast.  In Tamarindo, Flamingo, Manuel Antonio or Jacó you might find a 10 - 15 room hotel in that range.  In other areas that are not as developed, like Samara, Hermosa (either) or Montezuma you would get more land, or more rooms, or more amenities already built.

One thing that is different is the accounting books.  Don´t bother asking to see the books, because they probably don´t exist or they aren´t accurate.  You have to look at the business on your own and make sure you can verify the occupancy or revenue from sources other than the owner.

In general, rooms are scarce in Costa Rica in the high season and the government is trying to attract more rooms from investors building hotels, so occupancy rates are high and if you know what you are getting into it is a good business.

As for other advice, check out this article on buying a business property in Costa Rica.
http://www.american-european.net/business.shtml

You might like to see a hotel we have in Tamarindo, very nice and a real good price:
http://www.american-european.net/beach-costa-rica/listingview.php?listingID=575

Hotel Granada in Samara too:
http://www.american-european.net/beach-costa-rica/listingview.php?listingID=488