Hospitality in real estate includes renting houses and private villas, developing tourist resorts, and offering food and relaxation services. Thanks to its high tourist numbers, Costa Rica is one of the most desired destinations in the region for hospitality services. This is because of its beautiful natural scenery, rich culture, and commitment to environmental sustainability. Here’s everything you need to know about buying a hospitality property in Costa Rica.
At Nativu Hospitality, we provide end-to-end support to ensure that acquiring a property is a satisfying experience. We like to start with a conversation to define the vision of the property you want to obtain. Several factors need to be considered, such as the purpose, desired climate, views, land division, size, etc., to search for properties with these qualities that meet your goals for your hospitality property.
Once potential properties are selected, we proceed with accompanying visits. This allows our advisor to provide the best guidance and ensure you make an informed purchase based on previously discussed factors.
There are various types of hospitality properties that cater to the needs and preferences of visitors. Some of the most common types of properties in Costa Rica include:
Hotels:
Hotels are the most common type of hospitality service. This sector includes everything from charming boutique hotels to luxurious all-inclusive resorts. In Costa Rica, there is a wide variety of hotel options that cater to all budgets and preferences. This extensive range allows for providing high-quality service to a large percentage of visitors.
Eco-lodges:
Ecolodges are small accommodations located in natural or protected areas, designed to have minimal environmental impact. Given Costa Rica’s rich biodiversity and commitment to sustainability, these lodgings are often situated in stunning environments such as tropical jungles, pristine beaches, or mountainous regions. They are carefully designed to harmoniously integrate with their surroundings, offering visitors a unique experience in tune with nature.
Finca:
The term “finca” is very Costa Rican, although it is also used in other Central American countries. In Costa Rica, it is applied in a particular way: a finca is a property used for both recreational purposes and productive operations. It combines the features of a recreational estate with agricultural production or other economic activities.
Vacation homes:
The demand for this type of property has increased with the growing popularity of vacation rental tourism. Costa Rica offers a wide variety of private homes and villas available for short-term rental, especially in coastal areas and natural settings.
Bed and Breakfast (B&B):
Bed and Breakfasts (B&Bs) are small, cozy establishments that offer accommodation with breakfast included. Typically, these are located in rural settings or near natural attractions.
Glamping:
Glamping, or luxury camping, is a type of hospitality that has rapidly gained popularity. This is because more and more spaces are appearing with unique offerings. Glamping properties provide a camping experience with modern comforts, such as luxury tents or cabins, situated in natural environments.
Posadas or Hostels:
Posadas are a budget-friendly option for travelers or those seeking a more social experience. They offer economical accommodation in shared dormitories or private rooms with common areas.
Thanks to the expertise of our specialized advisors at NATIVU Hospitality, who have a deep understanding of the market, we have conducted an analysis of the key factors to consider when investing in these types of properties.
Location:
Location is crucial in the hospitality industry. Consider proximity to tourist attractions, beaches, national parks, and other points of interest to attract visitors. Also, evaluate the accessibility and transportation infrastructure in the area.
Market demand and trends:
Analyze the current demand and market trends in tourism that give the property its extra appeal. This includes high and low seasons, tourist preferences, and any changes in travel patterns that may affect the property’s occupancy and income.
Competition:
Research the competition in the area, including other hotels, resorts, vacation homes, and alternative accommodation options. This will allow you to evaluate how the property positions itself compared to the competition and what makes it unique.
Infrastructure and property conditions:
It’s crucial to examine the infrastructure and conditions of the property, including the quality of facilities, maintenance history, and whether there’s a need for updates or improvements. Additionally, consider the availability of basic services such as water, electricity, internet access, and security.
Regulations and permits:
Make sure to understand local regulations and permit requirements for operating a hospitality property in Costa Rica. This includes building permits, zoning regulations, footprint size for construction, operational licenses, maritime-terrestrial zone considerations, concession cases, and restricted areas.
Profitability and financing:
Conduct a detailed financial analysis of the property’s profitability, considering potential income, operating expenses, and expected return on investment. Additionally, evaluate available financing options and interest rates.
Professional advice:
Choose to work with Nativu Hospitality professionals. Our specialized real estate advisors and experts in the sector provide quality guidance and advice throughout the purchasing process.
In addition to lodging options, Costa Rica offers various forms of hospitality not directly related to accommodation:
- Restaurants, Bars, and Lookouts: The culinary industry provides a wide range of restaurants and cafes that offer hospitality services, offering a unique culinary experience reflecting local culture.
- Spas and Wellness Centers: Spas and wellness centers provide relaxation and rejuvenation services such as massages, facials, yoga, and meditation. They are ideal for visitors seeking rest and revitalization.
- Marinas: Marinas play a significant role in the hospitality industry by offering a variety of services and experiences related to the sea. Catering to visitors arriving by boat or looking to enjoy water activities during their stay in the country, they are often highly profitable.
These alternative forms of hospitality business have their own guidelines separate from accommodations. We recommend consulting with our experts in any of these cases.
Benefits of Investing in Hospitality
The value of the property
The value of a hospitality property is divided into different aspects:
- Heritage Value: The property is inherited and enjoyed among family and close ones.
- Economic Value: A hospitality property generates income and can serve as economic support or additional income.
- Sentimental Value: Linked to heritage value, a property can be enjoyed in many ways, fostering connections with others or providing personal time, which is a significant added value.
- Investment Value: The possibilities for developing a hospitality property are endless, making it a primary investment objective.
- Environmental Value: Properties near conservation areas contribute to environmental protection through tourism.
Growing demand
The demand for accommodation in hotels and hospitality properties continues to grow, especially in popular tourist destinations or urban areas with high economic activity, such as Costa Rica.
Growing tourism
Our country is known for its natural beauty and growing tourism industry. The demand for tourist accommodation, such as hotels, resorts, and vacation homes, continues to increase.
Facilities for foreigners
Costa Rica offers incentives and facilities for foreign investors, making the process of property acquisition and investment in the hospitality sector easier.
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