If you are considering running your own hotel or B&B in Costa Rica, there are many reasons to consider purchasing an existing property rather than building your own from scratch. Perhaps one of the most important reasons to consider doing so is that you can purchase a property with an established name and branding. This can make marketing easier – freeing up time and money that would otherwise be spent on building brand awareness – allowing you to turn a profit that much quicker.
Purchasing an established bed and breakfast or hotel also provides the benefit of a solid financial history. This, in turn, can facilitate the preparation of budgets. It can also make it easier to obtain financing, if necessary. As is the case with many areas in this part of the world, cash is critical. Purchasing an established property provides you with the benefit of cash flow that can assist you in meeting your short-term financial needs. It can often be somewhat difficult to obtain commercial loans, or even short-term financing, in Costa Rica. A solid cash flow can provide you with the peace of mind you need when first starting your business.
An established property can also provide you with the benefit of the necessary legal status for complying with tax reporting, permits and labor law obligations in Costa Rica. You will also find that many of the established B&Bs and hotels for sale in Costa Rica come with a large number of assets, most of which can be quite valuable in their own right. Rather than spending time and money on furnishing a new hotel, you can instead walk into a turn-key establishment and focus on turning a profit right away.
Building the marketing channels necessary to ensure high occupancy rates can take time. If you are new to the area, it can also take quite a bit of patience. Naturally, this can increase your risk when starting a new business. By purchasing an established property, you may find that it already has a loyal following that can ensure you stay booked.