Extract from my new e-book on amazon" Hotel Investment in Brazil for 2016" Chapter 1
Why Invest in Brazilian Hotels 10 Important Reasons
Here are some important factors that make Brazil a very attractive market for hotel investment in the short to long term future.
1.Fabulous tropical environment
2.All year round warm sunny climate in the north east of the country
3.Huge domestic market
4.Great potential for long term growth internationally
5.Devaluation of the Brazilian currency creating a definite window of opportunity
6.Improving accessibility and infrastructure of airports and highways linking the Brazilian coastline.
I will touch upon on each of these factors in the subsequent chapters.
Why Invest in Brazilian Hotels 10 Important Reasons
Here are some important factors that make Brazil a very attractive market for hotel investment in the short to long term future.
1.Fabulous tropical environment
2.All year round warm sunny climate in the north east of the country
3.Huge domestic market
4.Great potential for long term growth internationally
5.Devaluation of the Brazilian currency creating a definite window of opportunity
6.Improving accessibility and infrastructure of airports and highways linking the Brazilian coastline.
I will touch upon on each of these factors in the subsequent chapters.
Here are 4 additional reasons that create a highly attractive investment environment for hotel investors ;
Low stock of good quality hotels
7.There is a low percentage of modern, newly built hotels in Brazil.The vast majority of hotel establishments are over 15-20 years old and many of them have not been extensively remodelled over the years so they feel out dated, a bit run down and in need of upgrading in general.
This provides an opportunity for you to buy an existing hotel in a great location at a competitive price and remodel to your specifications. This will allow you to stand out, by creating a high quality infrastructure that is fresh, stylish and properly maintained thus ensuring a great reputation in the market and competitive edge.
Low stock of good quality hotels
7.There is a low percentage of modern, newly built hotels in Brazil.The vast majority of hotel establishments are over 15-20 years old and many of them have not been extensively remodelled over the years so they feel out dated, a bit run down and in need of upgrading in general.
This provides an opportunity for you to buy an existing hotel in a great location at a competitive price and remodel to your specifications. This will allow you to stand out, by creating a high quality infrastructure that is fresh, stylish and properly maintained thus ensuring a great reputation in the market and competitive edge.
Competitive advantage with high quality services
8.Aligned with the general low quality of Brazilian hotel maintenance is a lack of consistency in the quality of hotel management, guest related service and attention to detail. This can apply to all types of hotels in Brazil (budget to luxury) and covers the standard of efficiency in dealing with guests from checking in/out at the front desk to ordering room service to the quality of food, restaurant services etc. This erratic standard of service is mostly caused by the lack of proper training, monitoring and evaluating of staff members and the short term nature of employment contracts with subsequent high turnover of staff. This situation creates another potential opportunity for foreign hotel investors who understand the importance of customer service and can train staff to deliver the very best levels of care, courtesy and consistency.
8.Aligned with the general low quality of Brazilian hotel maintenance is a lack of consistency in the quality of hotel management, guest related service and attention to detail. This can apply to all types of hotels in Brazil (budget to luxury) and covers the standard of efficiency in dealing with guests from checking in/out at the front desk to ordering room service to the quality of food, restaurant services etc. This erratic standard of service is mostly caused by the lack of proper training, monitoring and evaluating of staff members and the short term nature of employment contracts with subsequent high turnover of staff. This situation creates another potential opportunity for foreign hotel investors who understand the importance of customer service and can train staff to deliver the very best levels of care, courtesy and consistency.
Low revenue and capital gains tax rates.
9.The taxation on Brazilian hotel revenue is relatively low at 16%.You are able to repatriate profits overseas after paying this tax and when you decide to sell your hotel you are liable to pay only 6% on the total sales price or as an individual 15% capital gains tax.
9.The taxation on Brazilian hotel revenue is relatively low at 16%.You are able to repatriate profits overseas after paying this tax and when you decide to sell your hotel you are liable to pay only 6% on the total sales price or as an individual 15% capital gains tax.
No legal barriers of entry.
10.As a foreign investor you are able to buy a hotel free and clear without the need for a Brazilian partner/shareholder. You can transfer the property, holding company into your name with 100% ownership rights and providing you obtain the relevant licenses, can renovate, expand and rebuild the property without any legal impediment.
Mike is a licensed hotel broker in Brazil and has a large portfolio of hotel resorts,boutique/business lodgings and development land in all the main cities and resorts of the country.
10.As a foreign investor you are able to buy a hotel free and clear without the need for a Brazilian partner/shareholder. You can transfer the property, holding company into your name with 100% ownership rights and providing you obtain the relevant licenses, can renovate, expand and rebuild the property without any legal impediment.
Mike is a licensed hotel broker in Brazil and has a large portfolio of hotel resorts,boutique/business lodgings and development land in all the main cities and resorts of the country.
Mike Smith
Professional Real Estate Broker in Brazil
Website; http://www.brazilbeachhouse.com/
Cell; 55 84 99993 8936 / whatsapp
Skype; mikebrazilbeachhouse
Buy Mike's new book on Brazilian Hotel Investment in 2016 at Amazon today;
https://www.amazon.com/Hotel-Investment-Brazil-2016-Investors-ebook/dp/B01EINIZVA
Cell; 55 84 99993 8936 / whatsapp
Skype; mikebrazilbeachhouse
Buy Mike's new book on Brazilian Hotel Investment in 2016 at Amazon today;
https://www.amazon.com/Hotel-Investment-Brazil-2016-Investors-ebook/dp/B01EINIZVA
