Freehold For Sale
In 2011, I bought an old ruin in the Colonial Zone, Santo Domingo. Over three years I painstakingingly managed the rebuild to turn it into a beautiful boutique hotel. The hotel is now one of the most successful in the area, number 1 on Tripadvisor. Due to personal circumstances I moved back to London in 2015, and I now want to release equity by selling the freehold on the hotel.
The hotel will then rent the building from you. You'll get a guaranteed 6% return on your investment, and will be able to stay free of charge in the hotel for four weeks per year.
What You're Buying
The building which I am selling is approximately 200 years old and located in the Colonial Zone of Santo Domingo. Throughout the building there are original features including beautiful ceramic tiles and original hand-carved mahogany doors. The building is also environmentally friendly, with solar panels used to generate over half of the electricity used.
The building includes the following six bedrooms - click on the links to see each room in detail, or here for a photo gallery.
Hermanas Mirabal Suite
Francisco Sanchez Suite
Mella Superior Room
Duarte Superior Room
Maximo Gomez Room
Marcos Diaz Room
In addition the building has
A Reception Lobby and Bar
A Pool Patio and Pool Bar
A Pergola and Roof Garden with Jacuzzi
Price & The Deal
It is important to understand that I am selling the building, not the hotel business itself. You would buy the building and the hotel would rent it back from you. The selling price is US$750,000, approximately £520,000. The hotel would enter into an agreement with the buyer to pay a monthly rent of US$3,750, or US$45,000 per year. This rent will be guaranteed by the seller for a minimum three year period and written into a rental contract drawn up by a UK solicitor. The seller is a UK national, lives in the UK and has sufficient other assets to be a good covenant.
The hotel is trading profitably and can comfortably afford to pay this level of rent, year round. If the hotel were to cease trading, or the buyer decided to terminate the agreement in the future, the building would work as a luxury family home.
In addition to the return on your investment, you will be allowed to stay free of charge in the hotel 28 days per year.
If you choose to buy the hotel business as well as the building, this is available at an additional price.
You are buying a building which a profitable, successful, business will rent back from you for a guaranteed return of 6% per year.
The building has been refurbished completely and the hotel employs a maintenance person who works constantly to maintain it. The hotel will cover the cost of maintenance work required;
The Colonial Zone is attracting increasing numbers of tourists each year. Property prices are rising and your investment will achieve good capital growth;
The Dominican Republic has a favourable tax system for foreign investors. It is reasonably easy to qualify for an Investor Residency which exempts holders from taxes on any foreign income;
The Dominican Republic is by far the most visited island in the Caribbean - in 2014 there were over 5 million tourists, compared to just over 3 million in Cuba. The majority of tourists previously headed for the all-inclusive beach resorts of Punta Cana and Puerto Plata, but as new motorways have opened up, more and more tourists are visiting Santo Domingo's Colonial Zone, the oldest city in the Americas.
Santo Domingo is the largest city in the Caribbean, with nearly four million inhabitants, larger than Birmingham or Manchester. There are over 10 direct flights a day from New York amongst many other American cities, daily flights from Iberia from Madrid and Air France from Paris. British Airways flies direct to Punta Cana from London Gatwick, two hours drive away. As a major regional hub, it has a lot of business visitors, which generates a year-round market for the hotel.
Within Santo Domingo, the Colonial Zone is the old heart of the city and the only area really worth visiting as a tourist. The Dominican government has invested in giving the whole area a facelift, and this work is ongoing. The aim is to make the area rival other ancient cities such as Cartaghena in Colombia or Havana in Cuba. The area has a lot going for it - restaurants, bars and tourist-focused shops. People love being able to see some real Dominican life, outside the bland all-inclusive environment. And it is very heavily policed and reasonably safe. Tourist arrivals are increasing substantially year-on-year and there is considerable scope for further growth.
The Independent Newspaper recently published an article, recommending Santo Domingo as a better alternative to Havana in Cuba. Santo Domingo was also recently featured as a cool destination by the New York Times. British Airways is currently filming a major advertising campaign for the Dominican Republic featuring Santo Domingo.