An American after hundreds of short visits and long stays have decided to retire to DR . Considering South Coast or ether North Coast , have decided to buy a land ( near or on the beach ) and build a small Apart Hotel . Probably two 4 floors buildings with the pool in the middle . He wants to have a Pool Bar , maybe small Restaurant , Laundry facility , Health Center ( may be small spa and gym) . To live in one of the apartments and run it as a family business . He is not really an internet guy . Knows everything about construction as it is his business back in NY and even participated in few construction projects here in DR . He asked me an advise about the idea of this small Apart Hotel just for vacation rentals ( 15 - 25 apartments depending on type of the units ) and his question was : What type of units will be the best to have and in what quantity proportion - Studios , 1 Bedrooms , 2 Bedrooms or even larger . Personally I recommended him to make few of each : some 3 , 2 Bedrooms , more 1 Bedrooms and even more Studios . But I mentioned him about huge DR1 Community of people with the experience of traveling or living in DR , some staying in such facilities and some of the members even own such similar business here . ( And recommended him to advertise it later on DR1 rental section as well ) . So please post any of your opinions , advises regarding this matter based on your personal experiences . Thanks .
- Thread starter STEVE G.
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New small Apart - Hotel advise needed
this sounds like a good idea up on the north coast where beaches and people are nice, always full of tourists and or locals on vacation.
i like the studio or 1br setups as i always either travel solo or with my wife. i like the gym idea as i always look for one wherever i go with little or no success...
i like the studio or 1br setups as i always either travel solo or with my wife. i like the gym idea as i always look for one wherever i go with little or no success...
In the Real Estate section there are several Apart-Hotels for sale. Has he checked those out? Might save him some $$$ and time.
this sounds like a good idea up on the north coast where beaches and people are nice, always full of tourists and or locals on vacation.
i like the studio or 1br setups as i always either travel solo or with my wife. i like the gym idea as i always look for one wherever i go with little or no success...
Thanks jalencastro
In the Real Estate section there are several Apart-Hotels for sale. Has he checked those out? Might save him some $$$ and time.
Thanks rendul but as I have posted he is a construction professional and knows how to build in DR two buildings at the cost of one bought done :cheeky:
Your friend would be wise to visit Plaza Real in Juan Dolio and view a successful development. The Italian owner started small and kept plugging along and adding buildings and services as he went along. I have stayed there often and watch the improvements. I think it is a good size development which has a good mix. He has a resturant,groceries,laundry,a good mix of different size apartments and cabins. There is something for just about any kind of independent traveler or short and long term rentals. In summary, it is a complex that fits a variety of peoples needs.
Three bedrooms bring in less per sq m than two or one bedroom. I know, mine is a three bedroom! I am considering whether it is practical to put a small kitchenette in the one bedroom as a proper 'lock off'. Of all the apartments in my complex, all the three bedrooms were at the bottom of the income list. One bedrooms have best return.
My 'mix' would be, on for example 30 units available...
20 one bedroom,
8 two bedroom
2 three bedroom
My 'mix' would be, on for example 30 units available...
20 one bedroom,
8 two bedroom
2 three bedroom
J
John Evans
Guest
I think the land would be quite expensive near the beach in a good area 15-25 apartments seems a lot ..I would go for a smaller but more exclusive development of maybe 10 apartments ...to make it more managable
Your friend would be wise to visit Plaza Real in Juan Dolio and view a successful development. The Italian owner started small and kept plugging along and adding buildings and services as he went along. I have stayed there often and watch the improvements. I think it is a good size development which has a good mix. He has a resturant,groceries,laundry,a good mix of different size apartments and cabins. There is something for just about any kind of independent traveler or short and long term rentals. In summary, it is a complex that fits a variety of peoples needs.
Thanks dulce . Agree with you Plaza Real is a good example for such developments . Sandro (The Italian owner) is a smart guy and has almost everything people need on their vacation .
Thanks KeithF for your practical advise . ''Lock off '' in case of the bigger units is a great idea . Would you consider any studios as well ?Three bedrooms bring in less per sq m than two or one bedroom. I know, mine is a three bedroom! I am considering whether it is practical to put a small kitchenette in the one bedroom as a proper 'lock off'. Of all the apartments in my complex, all the three bedrooms were at the bottom of the income list. One bedrooms have best return.
My 'mix' would be, on for example 30 units available...
20 one bedroom,
8 two bedroom
2 three bedroom
I think the land would be quite expensive near the beach in a good area 15-25 apartments seems a lot ..I would go for a smaller but more exclusive development of maybe 10 apartments ...to make it more managable
Thanks John Evans . Would you go for 10 mix apartments . Studios , 1 Bdr. , 2 Bdr. ? Agree the exclusivity of such project is a real goal .
Lock-offs are a very good idea, but usually only if you're selling the units...no need for three bedroom units - unless you do a 2BR/1BR (or studio) lockoff, but still, not really necessary. Studios are fine, especially for daily rentals. There is probably more of a market in the Sosua/Cabarete area than in Juan Dolio (I think). Your friend may also want to consider Samana/Las Terrenas.
Although your friend plans to run the property as apart-hotel, a lot of people start off with that intention but then decide to sell off the individual apartments. If he was to develop on a beach/ocean front lot, then he should also think of the future, where he may well decide to sell off individually. This in mind, he should consider more 2 bedroom units as these sell the best, and also offer the best return on investment as one bedroom apartments are only approximately 25m2 smaller than the 2 bedroom units but the sales price of a 2 bedroom is about 40% higher than a 1 bed. from a real estate point of view, I certainly would not rule out adding some studios or 1 bed units though. If you look at most of the developments on the North Coast, the majority of the units are 2 bed. I work for one of the largest property management companies on the north coast and we specialize in vacation rentals, and the units we rent the most on a short term basis is 2 bedroom units. If your friend builds in Sosua then he should take into account that 70% of the rental market in Sosua is to New Yorkers coming down for long weekends and they are generally looking for upscale 2 bed condos to rent. 90% of these renters come down in groups and they generally rent units together..it is very rare that they rent individual studios. PM me if you need more info on Sosua rentals