Tourism and development are oftentimes cyclical processes, and the winners and losers in the real estate game are oftentimes defined by WHEN they buy, not what they buy. Certainly a simplified view of the market, but one that always merits attention, and the past several years have seen some very interesting developments take place, which have created the transition into what is arguably the best time we have seen in over a decade to be investing in Costa Rica hotels for sale. There are a multitude of factors for this window of opportunity, and we will outline a few of the key driving factors to this important time in the marketplace.
1. Tourism is Booming
Costa Rica has always been a darling of the world in terms of Eco Tourism, but the country’s government, tourism boards, and reputation globally are on a meteoric rise of late. The first quarter of 2018 saw a growth of 6% over the same period of 2017, and all indicators are that the remainder of the year will continue this pace or an even faster growth rate. Costa Rica is investing heavily in global advertising, trade show participation, and was recently awarded the 1st place position for their participation and booth at the largest German Travel Exposition. Due to the direct efforts of the tourism ministry, there are now direct European flights from Paris on Air France, London on British Airways, Iberia to Spain, Condor and Lufthansa to Germany, KLM to the Netherlands, and Edelweiss to Switzerland. These new markets, combined with increased flights to the USA and Canada, are only going to boost figures and tourism arrivals in the coming years. In addition to the flights, Cruise ships are increasing their figures with visits to Costa Rica, opening the eyes of thousands of travelers who visit on these short day trips only to return for longer stays.
2. Mother Nature
While you can never predict the power of Mother Nature, the disastrous hurricane season last year in the Caribbean will take decades to rebuild for many of the once prime tourist destinations. While South Florida and the Caribbean will recover and rebuild, the hurricane risks of this region and Mexico are unavoidable, and with the intensity of storms increasing with Global warming, it is not a question of if, but when they strike again. IN the wake of these storms, families, snowbirds, and travelers from around the globe are seeking new tropical destinations that offer warm weather, tropical beauty, security, and safety. Costa Rica offers VERY easy accessibility from all parts of the USA and Canada, the same or small time zone differences, and some of the world's most iconic beauty. With no direct hurricane impacts in the past 100 years, Costa Rica has a well-positioned and safe destination for growth and investment in the hotel and tourism sector.
3. Huge Opportunities for Redevelopment of Older Hotels
Building new resorts will inevitably be a part of the growth of Costa and any growing tourist destination. That being said, as the saying goes, first come, and the reality is that many of the BEST locations in the BEST and most desirable areas of Costa Rica are occupied by hotels built in the early days of tourism here by small mom and pop operators. Many of these original pioneers were not hoteliers by trade, but visionaries building a lifestyle, and so investments in FF&E, renovations, and redevelopment were not prioritized. Some of the finest opportunities in Hotels in Costa Rica now are on PRIME locations, which will require some degree of renovation to unlock potential, but where the land alone is worth what the hotels are seeking in pricing. Costa Rica is moving from a backpackers paradise to a world force in tourism, investors with the savvy and vision to see these opportunities, to purchase at the start of this cycle, and to create the destinations of the next 25 years have EVERYTHING to gain.
While the macro-level condition of Costa Rica is IDEAL for Hotel investments and purchases, it is important to remember that Costa Rica is still incredibly diverse in terms of its geography, infrastructure, tourism density, and lifestyle. Work with experienced teams to help you educate yourself about Costa Rica, the pros and cons of each area, and then on the properties that will suit your investment scope and hotel vision. A good team of savvy buyers with vision and experienced realtors who can guide you to the best properties for your goals will be making a LOT of MONEY in the coming years, and doing much of it in flip-flops!