Oceanfront Hotel in Dominican Republic

Puerto Platta, Dominican Rep.


Asking Price: Annual Revenue:
$799,000 $123,000

Services: Hotel, Motel, Lodging


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RE: Oceanfront Hotel in Dominican Republic Broker: Seller of Business

Quick Facts

Asking Price: $799,000
Annual Revenue: $123,000
Net Profit: $76,555
Cash Flow: Not Disclosed
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: $700,000
Year Established: Not Disclosed
Employees: Not Disclosed
BBN Listing #: 11017375
Broker Reference #: Not Disclosed

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Business Overview:

Asking Price: $799,000

Cash Flow: $70,000

Gross Revenue: $120,000
EBITDA: N/A
FF&E: $150,000
Inventory: $5,000*
Real Estate: $600,000
Established: N/A
*not included in asking price.
Business Description
Seeking a lifestyle change? If you are interested in becoming an active, engaged investor in the splendor of a tropical paradise, this facility built in 2004 in Cabarete, Dominican Republic is definitely worth consideration! Requirements for ownership: best-suited for a couple who truly enjoys interacting with people, love the outdoors and the tropics as well as possess a willingness to fully immerse themselves into a new and interesting culture. Specifically, the real estate/ business is being sold by a Swiss-born ( U.S citizens) for $799 K; they have owned the facility for 5 years, and are desirous of enjoying the fruits of their labors from two businesses while still in good health. Although they are willing and ready to sell at any time, they would provide any and all necessary on-site training and stay actively involved for as long as the new owners would be in need of their expertise and guidance.
As an overview of this business, it provides accommodations closest to the world-class surfing spot known as Playa Encuentro. Competition is minimal, as there are no beachfront hotels or villas in Encuentro. Because of outstanding surf and beautiful beaches, this area is alluring for all sports enthusiasts; however, surfers and kiters are catered to with camps frequently offered. Sports enthusiasts from Europe and North America predominantly comprise the guests with Germans and Americans being the largest single groups. With a simplistic business model that offers clean, safe and fun accommodations for these sports lovers, management of the facility is fairly uncomplicated, as there is no food service offered. Since the Puerta Plata Airport is merely 20 minutes away, guests fly in daily from Miami, New York and Boston. Direct flights from Canada, Germany and Manchester, UK also bring guests to this tropical paradise.
Renovations by the present owners totaling $150,000 were done to upgrade the facility to US/European standards. Included in the renovations were: diesel generator, AC units in every room, security system, yoga platform, workshop, drinkable tap water, strong Wi Fi signals in all areas, grilling area, laundry facility, office and a new kitchen in the Penthouse. No outstanding maintenance issues exist, and there is a property management system online. Actual accommodations consist of 8 studio apartments located in a tropical garden with a pool; 5 apartments can lodge 3-4 guests while the 3 smaller apartments are exclusively for singles and couples. Directly above the larger apartments is the owners' apartment whichconsists of 3 bedrooms, 2 baths and a large terrace. Staff for the facility includes 2 maids and a gardner who have been employed here for quite a long time and are anxious to stay on with a new owner.
Financially, gross sales are $ 120,000, and the business has generated not less than $50,000 - $60,000 per year in cash flow in the last 5 years. Approximately $600,000 of the assets for sale are directly related to the business while the rest relate to the Penthouse and to personal assets. Since long-term mortgage financing is extremely difficult to acquire in the DR, at least half of the asking price would be needed in cash at closing. Also included in the sale are the fixtures(FF&E ) which are valued at $150,000. As added incentive, the owners would consider a substantial price reduction if no financing was needed.
With a cost of living at approximately $10L because there is no rent, no personal income taxes, inexpensive food and low costs, in general ,to live in the Dominican Republic, this can be a dream come true. In addition to a successful business, a prospective buyer may rest assured that the friendly island residents and spectacular tropical surroundings will offer and unparalleled lifestyle change!

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Additional Details:

  • The property is owned.
  • The owner is not willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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