Currently, hotel and resort investors are looking more and more to invest in Caribbean Hotels as they have come to realize that acquisitions in these markets for ocean front resorts is far more financially attractive than the U.S. and Europe. If you are considering an acquisition, the Caribbean and Latin America may be a worthwhile consideration.
Look at the Numbers!
Ocean front properties in the U.S. are selling in the range of $1.2 to $1.8 MM per key. Caribbean resorts are typically $500,000 per key or less with labor expense at 50% or less of the cost in the US. That scenario is complemented by the fact that a luxury property in the Caribbean or Latin America can easily command the same room rates as a luxury resort in the U.S.
Enticing Investment Incentives
Owning a hotel in the Caribbean or Latin America means that business travel will come with some significant advantages for you! In addition, most of the islands or countries with an interest in developing tourism, have developed enticing investment incentives from mitigating taxes to including citizenship.
Anguilla has several programs with the Real Estate Permanent Residence option and the Tax Residency option and they both include tax benefits and possible citizenship. Costa Rica has generous corporate tax exemptions while Antigua and Barbuda offer one of the lowest required investments for citizenship. These are constantly changing so be sure to check current availability of investment incentives for each destination. Tourism is growing rapidly and many of the countries are quite eager to discuss ideas.
How to Get Started
We work with hotel owners, investors and family offices in finding solutions to improve profitability for existing properties, acquiring additional hotels to expand their hotel portfolio or assisting them in finding a buyer to discretely sell the asset.
If the Caribbean is of interest, this could be a great time to consider a change to your portfolio. To view select listings, visit our website here. Or give us a call and we will walk you through the options to find the right fit for your goals.