Hotel Businesses - why so many cheep for sale?

FrankFlorida

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Feb 3, 2006
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I noticed while browsing thru DR real estate web pages that many small and middle size hotels in DR are real cheep for sale. What happen? Not enough tourists anymore? Room rents to low? Taxes to high? No safety for small, independent hotels? Are small hotels the worse business in DR? What is the trend?
 

Dolores1

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May 3, 2000
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From what I am told, a small hotel works best when the owner lives on the premises, and runs the hotel as a sideline -- such as the bed and breakfast operations.

On the positive side, the DR is attracting more tourists everyday, there now is the Internet. On the negative side, safety is an issue today, so are taxes, and high electricity costs.

On the other hand, the trend is for opening of boutique hotels, catering to the affluent. Those operations apparently are gambling on being able to pay the higher overheads.
 
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HOWMAR

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Jan 28, 2004
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FrankFlorida said:
I noticed while browsing thru DR real estate web pages that many small and middle size hotels in DR are real cheep for sale.
How can you say "cheap for sale" without knowing the cash flow. Any hotel that doesn't carry overhead, debt service and give a return on investment is very expensive, no matter what price you paid for it.
 

Criss Colon

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Jan 2, 2002
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I have asked that question to the owners of two small hotels

THe Europa,in Sosua,and the Zapata inBoca Chica.They both say that having to generate their own electricity when the power is out much of the time,and paying very high prices when it is "ON" are killing them! End of Story! The Zapata was 100% full and still having trouble.It is $65 US a night there by the time you pay the room plus taxes!!And They Have NO POOL!
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NALs

Economist by Profession
Jan 20, 2003
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Criss Colon said:
THe Europa,in Sosua,and the Zapata inBoca Chica.They both say that having to generate their own electricity when the power is out much of the time,and paying very high prices when it is "ON" are killing them! End of Story! The Zapata was 100% full and still having trouble.It is $65 US a night there by the time you pay the room plus taxes!!And They Have NO POOL!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Does San Andres Bay count as a pool?:nervous:

Let's see:

-No waves, check.
-Clear water, check.
-Safe for swimming, check.
-Not too deep, check.
-Near by Restaurant/bar (Napolitano), check (btw, good seafood).

Sounds like a pool au natural.

-NALs
 

NALs

Economist by Profession
Jan 20, 2003
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ricktoronto said:
I am not sure clear water capably describes Boca Chica bay.
Ok ok ok, clear but murky, although the closer to the Hamaca resort, the nicer the beach gets.

-NALs
 

british bulldog

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Jan 21, 2006
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The reason these hotels appear cheep is because they are struggling to survive.quote many off the reasons above.(NOT ONLY TO MENTION)the vast numbers off A/I hotels poping up;many people i talk to ,prefer the ease of A/I ,one price one fix.the cost of going solo is a killer at the moment.The idea of running owning,yes looks attractive,mabee a dream;best keep it that way; my guess;steer well clear. (what say rick)YOUR VIEWS'
 

british bulldog

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Jan 21, 2006
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OK ,in lamans terms;the competion is, all inclusive hotels;more,and more people are using them ,than travelling solo having to pay high cost for a nights hotel room ,food ,and drinks,transportation etc.One price gets them everything they need ,without the worry of added cost;for this reason and the others mentioned; small hotels are struggling.
 

abe

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Jan 2, 2002
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Hotels as potential condo conversions?

If the real estate market for gringoes is so hot on the North Coast, why aren't these small hotels being reconfigured (merging hotel rooms into condos) and sold as condos?
 

Andy B

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Jan 1, 2002
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www.elmarinique.com
One answer for why so many small hotels and tourist businesses are being sold cheaply is that their owners are tired of making small fortunes,...out of big ones. Same goes for many other foreigner owned and operated businesses here in the DR. Despite what many may think, it's not "business as usual." Things are different here.
 

HOWMAR

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Jan 28, 2004
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abe said:
If the real estate market for gringoes is so hot on the North Coast, why aren't these small hotels being reconfigured (merging hotel rooms into condos) and sold as condos?
The cost to retrofit them probably is prohibitive. As they now stand they have common electric and water, etc. They don't have reliable sources of backup electricity and the structures have been neglected for years. Most cases it is more efficient and economical to build new.