Tropical Winds Hotel St. Philip
Barbados thrives on its tourism market and those on holiday and vacation always need somewhere to stay, often making the purchase of a hotel in Barbados a lucrative business investment.
There are normally only a few hotels on the market with prices ranging from approximately $3 million Barbados dollars through $45 million Barbados dollars.
If you are a property developer then looking to build a hotel is sometimes a good option if you can purchase some beachfront or other attractive property. You will often find smaller run down hotels are being sold off with planning permission to build either condominiums or town houses on the existing site.
Therefore, if you bought a hotel for $4 million Barbados dollars and then built eight town houses selling for a total of approximately $8 million Barbados dollars, you could make a tidy profit after your construction costs.
If you pay in the region of $5 million Barbados dollars then you can get an apartment bock with up to eight units, a restaurant, bar and swimming pool in a centrally located area. This is ideal as a first time business especially if the units are self catering.
Most development property priced between $5 million and $20 million Barbados is normally being sold as development property and would be a vacant building lot on the beach. Therefore you would have to invest in developing condominiums or beachfront villas.
An investment of approximately $26 million Barbados dollars will typically buy a fully operational hotel with approximately 30 self-contained units, complete with a formal dining room, swimming pool and all hotel facilities.
At the top end of the market, for an investment of approximately $45 million Barbados dollars will typically buy a fully operational hotel with up to 120 bedrooms and a few acres of land along the beachfront, with bars, restaurants, swimming pool, and this would normally come with planning permission for future expansion or development.
Whether you are looking to buy a hotel with a plan to develop beachfront land or purchase an existing hotel, you should convey your plans to a real estate agent in Barbados who can help advise you of the properties currently on the market. They will need to know your budget and if you need a property that already has planning permission if you are leaning towards developing vacant land.
Another option if you want to run a hotel is to look at developing a plantation house. Please read our article on Plantation House sales for more information.
If you choose this option you'll need to apply to Town & Country planning for a change of use from residential to commercial property.