Buying a hotel in Costa Rica

The Costa Rican real estate market for small hotels (up to 30 rooms) has experienced significant growth, driven by a robust tourism sector and strategic investments.‍

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Market Trends and Locations

In 2024, Costa Rica welcomed approximately 2.66 million tourists by air, marking a 7.7% increase compared to 2023 and the highest number of visitors in 16 years.

This surge in tourism has heightened demand for diverse accommodations, including boutique and small hotels. While popular destinations like San José and the Pacific Coast continue to attract significant interest, regions such as Guanacaste have emerged as attractive locations for small hotel developments, bolstered by a 14.5% growth in tourist arrivals at Guanacaste International Airport. ‍

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Average Daily Rate (ADR) and Occupancy

The hospitality sector has seen positive trends in key performance indicators:

- ADR: In 2024, the average daily rate for vacation rentals in Costa Rica was $271, reflecting a 25% increase from $216 in 2019.

- Occupancy Rate: Occupancy rates for vacation rentals decreased from 45% in April 2019 to 39% in 2024.

It's important to note that while these figures pertain to vacation rentals, similar trends are observed in the small hotel sector.

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Transactions and Investments

The hotel investment landscape in Costa Rica has been dynamic:

- Investment Volume: In 2024, property transactions increased by 28% compared to 2023, signaling renewed buyer interest.

- Price Trends: Average prices for single-family homes dropped by 36%, with properties averaging $967,506.

These trends suggest a favorable environment for investors interested in small hotel developments, particularly in emerging regions.

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Tourism and Flight Statistics

Costa Rica's tourism sector has demonstrated remarkable resilience and growth:

- Visitor Numbers: In 2024, the country received 2,661,488 tourists by air, the highest in 16 years and a 7.7% increase from 2023.

- Air Travel: Juan Santamaría International Airport near San José welcomed 1,779,529 tourists (a 4.6% increase), while Guanacaste International Airport in Liberia recorded 881,289 tourists (a 14.5% increase).

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In summary, Costa Rica's small hotel sector is thriving, supported by a strong tourism industry, increasing ADR, and substantial investments. While traditional urban centers remain focal points, emerging regions like Guanacaste offer promising opportunities for boutique hotel developments.

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