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.

About the Author

Prior to becoming a Managing Principal for Luxury Hotel Advisors, Inc, Carlos served as Vice President & Managing Director of Hotel Bel-Air and the Palace in New York as well as EVP and COO of Olympus Hospitality responsible for directing hotel operations, marketing, and branding strategies for eight Rock Resort properties.

Carlos co-founded Unique Hotels and the Bel-Air Hotel Company. Over a period of five years with partner Eric Prevette, he successfully repositioned and managed over 50 luxury hotels and assisted in the sale of properties valued in excess of $500 million.

Previous to that, he served as Senior Vice President at Rosewood Hotels and responsibilities included operations, branding, centralizing marketing, and distribution initiatives. He also served as Sr. Vice President of Marketing of Four Seasons Hotels during their primary expansion which included new hotels in Washington, San Francisco, Vancouver, Newport Beach and New York.

Recently, Carlos redeveloped the new iconic Hotel Californian, one of the newest luxury lifestyle hotels on the west coast.