Are you thinking of buying a Costa Rica Hotel?
Hi:
Due to a contract dispute with the property owner, the Banana Tree Hotel is no longer available for sale, and has ceased operating.
I am keeping this page up because it receives many visitors who are looking for Costa Rica Hotels For Sale. And I would like to give you, information and advice that you may find usefull, if you are interested in buying a hotel in Costa Rica.
Background:
It was always my dream to own a small hotel or bed and breakfast near a tropical beach. And even though it didn't have a story book ending, I am proud that I went after my dream, and successfully owned and operated a hotel. I know that it isn't a unique dream, that many people share the same desire, and you may be visiting this website hoping to fulfill the same fantasy I had. 
So let me give you some free advice about owning a hotel in Costa Rica.The first, and most important thing you should know, before buying a hotel in Costa Rica is that - tourism and investment are down. In fact, they have been declining over the past two years, and I don't expect a rise in either for a couple of years. The reasons are that, after two very strong years, there was a rapid expansion of hotel room capacity in Costa Rica, in anticipation of continued growth. Instead of growth in tourism, there was a decline, with the added capacity, the negative effect was magnified.At the same time, due to a slowing U.S. economy, tourism and investment declined. The U.S. economy, the country with the largest number of visitors to Costa Rica, is expected to get even worse. And the collapsing housing market in the U.S. will have a large negative impact on real estate investment into Costa Rica. So, all in all, I wouldn't expect great numbers over the next couple of years. European visits should remain strong, but it remains to be seen if it will expand due to the weak dollar, or if it's economy will be dragged down by the U.S. I would expect to see a lot of Costa Rica hotels for sale. Don't think you can't
own a small hotel in a foreign country? We did it!When we came to Costa
Rica from the U.S., and decided to buy a small hotel, neither my wife or I had
any experience owning hotel, knowledge, ability, know-how, or even common sense. Plus neither
one of us spoke Spanish.Worse, we didn't buy
a hotel, we got a building. We created the hotel from scratch, from mattresses
to marketing, we took a shell and filled it. The name, decor, website, light
fixtures, paint, furniture, washers, curtains, basically everything.And we somehow managed
to survive, better than survive, we succeeded. The Banana Tree Hotel was profitable.
Our website receives 9000 visitors a month, and we got reservations, from all
over the world. Doing business and
living in Costa Rica is different, but easier than you think, although learning
Spanish would be very helpful.
Before buying a Costa Rica hotel you see for sale, do a list of pros and cons, and think really hard before you chase a dream. Here's a list of pros and cons I discovered:
Pros
- We met a lot of wonderful people from all over the world. And we made a lot of friends. We're people people.
- You get to be your own boss. It's always better to be your own boss.
- Personal satisfaction from guests telling you how great your hotel is, how it was the best hotel in Costa Rica etc.
- A hotel is a business where people go to be happy, although they sometimes don't arrive, or leave that way.
Cons
- It can be the hardest business you'll ever own. It's always open, 24/7, Christmas, New Years, and you're always responsible.
- Employees, if they suck, your hotel sucks. If they're sick - you work. My wife and I cleaned rooms on our wedding day. Enough said.
- You can meet some really terrible people. Fortunately rare, but it does happen, and after a while you'll spot them before they check-in.
- You are going to screw up someones vacation. Handle 3000 reservations a year and you're going to make a mistake. It's no fun.
That's a short list of pros and cons. If you are looking at Costa Rica Hotels for sale there are many more things to consider. Location, marketing, occupancy, size, staff etc. Something to be aware of - hotel owners lie. I could never figure that one out. I owned a hotel, when my numbers were off by 20%, I knew other hotels were down as well. But when I asked other Costa Rica hotel owners how things were going, they would respond, "Fantastic. Wonderful. Great. Never better." Liars. I had one hotel owner, my neighbor, when we started our hotel she told me that she was "sold out for the next three years." In those three years she would go weeks and months without any guests. So, don't believe the numbers that you are being given. Do your own set of calculations.
There are three seasons for Costa Rica hotels - High, Low, and Dead. Plus two weeks of the year that are insane - Christmas and Easter.
Now that I don't own a hotel anymore, I have started a small real estate company, in an attempt to save Costa Rica's environment. Although the focus is not on hotels, if you are looking for Costa Rica Hotels for sale, we may be able to help you. Check out the Costa Rica Real Estate site for more information.
Sincerely,
Ramsay
Banana Tree Hotel
Manuel Antonio Costa Rica
(506) 777-1585
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