Costa Rica Attracting Enormous Foreign Real Estate Investors – What are you waiting for?

$600 million dollars of foreign investments so far in 2008 – The Costa Rican Board of Tourism (ICT), which reviews all new land development projects, announced that new projects so far this year represent $600 million dollars of foreign investment.

When the ICT declares projects tourism friendly, the developers receive tax exemptions and other attractive benefits. The list of new multinational companies includes: Ritz Carlton, Hyatt, Hilton, RIU, St. Regis, Aman and Mandarin Oriental.

These multinational companies invest substantial amounts of money in due diligence before deciding to spend millions of dollars. Costa Rica is obviously a logical choice for investors looking to expand globally.

ICT estimates that the overall investment expected for 2008 will be no less than last year, which brought $800 million dollars from foreign investment.

2008 Costa Rica Tourism Increase – The number of tourists in January increased 13.7 percent as compared to the same month last year, according to early data from the ICT and the Costa Rican Chamber of Tourism (CANATUR). The figure was 145,147 visitors, who arrived at Juan Santamaria and Liberia international airports. In January 2007, the number was 127,647. The increase is above the estimates previously stated.

Central Pacific Region – Up-Scale Resort Hotel Projects

St. Regis Resort, Costa Rica – Featuring 133 luxurious accommodations and ideally situated in Playa Coyol, on a 250-acre site with a secluded bay is surrounded by lush tropical wonderland, home to abundant flora and fauna. With dramatic views to the Pacific Ocean, stunning beaches and close proximity to the Los Sueños area, featuring an 18-hole golf course and marina, St. Regis Costa Rica promises to offer the best in world-class resort living.

Each guest room will include over-sized outdoor terraces complete with outdoor showers, netted day beds and relaxation coves. For the ultimate in privacy and pampering, the resort will boast four ultra-luxury spa suites outfitted with plush private treatment areas, plunge pools and the finest amenities. The Presidential Suite, the crowing jewel of the resort, will be perched on a dramatic cliff, complete with three spacious bedrooms, private pool and breathtaking views of the tropical forest and the Pacific Ocean.

St. Regis Residences, will include a total of 49 one, two and three-bedroom condominium-hotel residences, 42 deluxe whole ownership private villas and nine magnificent estate homes all delivered with private plunge pools.

Garabu Costa Rica – A new tourism and real estate mega-development, on a 400-hectare (988-acre) property, located between Playas Herradura and Jaco, on the Costa Rican Central Pacific coast. The project is called Garabu and it will blend Costa Rica’s natural environment and culture with luxury and exclusivity. The resort will include two 5-star hotels, a golf course, an amphitheater, condominiums, and a business center. The first stage of Garabu represents close to 10 percent of the overall project, which is an $88-million dollar investment.

Sonesta Jaco Resort – A luxury condominium resort hotel, located in Jaco Beach. This luxury complex will feature six, 13 story buildings, a luxurious lobby, lagoon style swimming pool, restaurants, bars, and all the services and amenities you might need. The resort is conveniently located at the first entrance to Jaco Beach, the ideal starting place for an adventure in Costa Rica’s Central Pacific Region.

The resort is managed by Sonesta Collection Hotels, a world-class operator of hotels for over 60 years. They offer the finest quality, service and satisfaction at its properties worldwide. Sonesta Collection properties allow you to become part of the culture that offers upscale accommodations to savvy travelers in select locations throughout the world.

Guanacaste Region – 9 Up-Scale Resort Hotel Projects Offering 3,500 New Rooms:

Guanacaste’s northern Pacific coast will have an additional 3,500 hotel rooms as soon as possible, according to nine major hotel and resort projects under way or in the planning stages.

Multinational Resort Hotel groups such as; Hyatt, Hilton, Regent International, Rosewood, JW Marriott, Occidental, Aman International, Ritz Carlton, One & Only Resorts and Four Seasons Resort are operational or have broken ground, in the permitting stage, or are negotiating to construct projects.

Many of these are very up-scale, 5 star projects situated on Costa Rica’s Northwest Pacific coast, from Hacienda Pinilla, just south of Playa Tamarindo to the huge Papagayo project, northwest of Playa Coco, home to the exclusive Four Seasons Resort. These new projects represent foreign investment of around $1 billion dollars and will create 7,000 to 13,000 new jobs.

A survey last year of 60 small, medium and large hotels across the country, by the Cámara Nacional de Turismo (CANATUR), showed about 45% of room requests were being turned down during the high season, because of the lack of accommodations.

In fact, the ICT estimated that they need about 49,000 rooms to accommodate all the tourists currently coming to Costa Rica. This means that 18,192 new rooms need to be brought on-line to support the existing tourism demand.

Costa Rica’s Existing Resorts

Playa Conchal – Operational since 1998, the Playa Conchal Resort is a 930-hectare project with a magnificent Robert Trent Jones II-designed Golf Course in Brasilito, Guanacaste. The elegant, 5-star Paradisus Playa Conchal hotel offers: 308 deluxe bungalow suites and 2 master suites, situated in 39 two-story private bungalows. They have opened an additional 102 rooms, bringing capacity to 410 rooms.

The new guest rooms, an additional 120-seat restaurant, new pool and conference center represent new investment of nearly $20 million dollars. Desarrollos Hoteleros Guanacaste, S.A, the parent company of the Playa Conchal resort and golf course development, says they will add a second hotel, probably beginning sometime this year. It will include 200 to 250 new rooms and could be operational within 30 months.

Four Seasons – For over twenty-five years, Four Seasons has offered legendary service in the most exclusive resorts. In 2007, its golf course in Costa Rica was named the best course in Central America by Golf Vacation Insider magazine. Currently they operate 75 hotels in 31 countries, with more than 30 properties under development. Their Costa Rica property offers world-class service in 60 Premium Rooms, 30 Deluxe Rooms and 30 Garden Rooms.

Additionally for their discerning clients, they offer exclusive suites in sizes from 1025 to 4200 square feet: 1 Presidential with three-bedrooms, 3 Canopy Premier Suites with three-bedrooms and plunge pool, 7 Pacifico Suites with three-bedrooms, 3 Pacifico Suites with two-bedrooms and plunge pool, 6 Canopy Suites with one bedroom and plunge pool and 15 Canopy Suites with one-bedroom.

Furthermore, the Four Seasons Residence Club provides private residence rentals in six Residences with three-bedrooms and three with two-bedrooms, all carefully positioned to enhance individual privacy. Capturing the exotic character of Costa Rica, each residence is designed, built and furnished to Four Seasons standards.

Occidental Grand & Allegro Papagayo – Located in the Gulf of Papagayo in the province of Guanacaste. The Hotels Occidental Grand & Allegro Papagayo are located on Manzanillo Beach and Papagayo Bay. With there 469 combined rooms and villas, the hotels provide first-class luxury and comfort.

The resorts offer not only the same service that has come to be the trademark of Occidental Hotels, but also the excitement of being in one of the most beautiful areas of the Papagayo Gulf with its all inclusive program. Hotel Facilities include a huge swimming pools, beach clubs, massage clinics, restaurants, bars, solariums, handicap rooms and sports facilities.

Costa Rica Real Estate – New projects

Azulera Resort Village – Just down the road from Playa Conchal is a 557-acre resort community with the 5-Star, Hyatt Regency Azulera Resort and Spa. The resort will include 320 hotel rooms and other first-class amenities including a Greg Norman-designed championship golf course, and shops. The development faces Brasilito Bay on Costa Rica’s Pacific Coast. Plans call for 1,000 condominiums, townhouses, and single-family villas scheduled for completion in late 2008.

Mandarin Oriental Costa Rica – This 130-room resort will open in 2009 and will be the cornerstone of an exclusive 538-acre gated golf and residential development called Rancho Manzanillo, which will feature branded Mandarin Oriental residences, beach and golf villas, and exclusive private homes. The stunning retreat will offer an array of leisure activities, from the 18-hole Fred Couples Signature Championship golf course, to exotic wildlife viewing from the property’s 200 acres of protected tropical dry forest.

Guests will be presented with a wide choice of contemporary dining experiences, from three exceptional restaurants, a lounge and three bars. The bay side beach club restaurant, pool bar and grill will command spectacular views over the water. Banquet and conference facilities will also be ideally suited for intimate meetings and private functions.

The Spa at the Mandarin Oriental, a 20,000-square-foot facility, will feature 14 state-of-the-art treatment rooms offering holistic rejuvenation and relaxation in a pristine natural setting. Incorporating the most comprehensive range of holistic wellness treatments in Costa Rica, the spa will feature life-enhancing signature programs that are exclusive to the Group as well as traditional water and heat therapies.

A sophisticated fitness center, tennis courts and a series of multi-level outdoor swimming pools will also be available. The golf pro-shop on property will provide all the equipment required for play on the Championship golf course.

Hacienda Pinilla – JW Marriott – Grupo Roble broke ground late last year and has now finished moving 50,000 cubic meters of dirt around on the five hectares of land in Hacienda Pinilla, for the new Marriott hotel. Originally, the developers had planned for 180 rooms, but recently announced an additional 250 rooms and they are planning to open the 1st phase in 2008. This new project is also offering 200 condominiums and villas, which the developers will then manage.

Rosewood Project – Now a done deal, after six years in the planning stages. This project is a 60-hectare (150 acre) project on Playa Guachipelin, owned by Roger Hall, of Hallmark Properties, a California development company. The master plan, cost analysis, and construction schedules are ready to begin an 80-room hotel, which will include 12 deluxe suites and 1 presidential suite. The project will include 60 villas of 2, 3 and 4 bedrooms. 20 single-family lots, along with a spa and fitness center.

Cacique, Costa Rica – Steve Case, Co-Founder of America Online (AOL), owner and Chairman of Revolution LLC bought 650 acres of land in Playa Hermosa for $42 million dollars. Mr. Case founded Revolution LLC with $500 million dollars of his own money after leaving AOL. He has pledged to make this new resort an environmentally friendly and culturally sensitive destination that will include a professional Agassi/Graf Tennis and Fitness Center, a mixed-use commercial and residential village with a number of for-sale residences, a Tom Doak 18-hole golf course and an equestrian center.

This $800 million dollar, 650-acre luxury resort in Playa Hermosa is near the huge Papagayo Project where the luxury Four Seasons Hotel has been operating for years. Revolution LLC has brought several multinational companies on board to build hotel resorts within the Cacique development.

Guacamaya – A few kilometers south of Mr. Case’s well planned, Cacique development, is a new project consisting of 242-hectares (600-acres), fronting Playa Guacamaya. The Baltimore, Maryland-based Union Box company purchased this property for $11 million dollars. The developers have access to both Guacamaya and Zapotal Beaches and are planning for the future with an option to purchase an additional 405-hectares (1000-acres) close to their Guacamaya project.

Aman Resorts International – a 20-year-old company that operates 18 resorts in 12 countries around the world.

One and Only Resorts – a hotel firm with locations worldwide – One & Only Resorts will offer 120 spacious, villa-style rooms, a 12,000 square foot spa, its own exclusive beach club, three restaurants and bars as well as meeting space including a dedicated boardroom.

Revolution Places will also develop, market and sell 300 residential villas at Cacique and One & Only will provide services to residential owners. Revolution Places and One & Only will also partner to create a limited membership, One & Only Club, available to a select number of real estate owners.

Matapalo – One of the most ambitious projects underway on 240 hectares (about 600 acres) fronting Matapalo, Guanacaste by RIU Hotels. RIU, a 53-year old Spanish company, with over 45,000 beds in 110 hotels in 18 countries and 18,000 employees that serve 2.1 million clients annually. RIU paid an estimated $26 million for the land, and is underway with the site preparation. The company has stated that it will build 3 new hotels offering 2000 rooms and they plan to begin construction in 2008.

Regent Punta de Papagayo – Two Minnesota developers announced they are building a $120 million, 150-room luxury hotel on the Papagayo Peninsula. Richard Pakonen and Blaine Kirchert are to team up with Regent International Hotels and the respected Costa Rican architect, Ronald Zurcher, to build and manage what will be known as the Regent Punta de Papagayo. It will include the hotel, 86 condominiums, 20 luxury single-family homes and an exclusive spa. The project is located within the Papagayo Tourism Project and will be called Polo Turistico.

Hilton Papagayo Resort – Hilton Hotels Corporation welcomes 2008 with the first Hilton open in Costa Rica. The resort is nestled between the mountains on a secluded, government protected, natural volcanic sand beach on the Bay of Papagayo in Guanacaste. Featuring 202 rooms, including 71 bungalows, the resort delights guests with luxury accommodations in the midst of pristine natural surroundings. Four brand new Junior Suites have been added to the resort, each with its own private plunge pool and amazing ocean views.

Hilton Garden Inn Liberia Airport – Scheduled to open in 2008 and located close to the Liberia International Airport in the Solarium Technology Park, a mixed-use development with commercial, residential and office spaces.

The hotel will feature 160 guest rooms including 10 suites and will offer signature Hilton Garden Inn brand attributes including complimentary Wi-Fi, 24-hour business center, a full service restaurant, evening room service, the ‘Pavilion’ lobby, which features a comfortable living room area and the Pavilion Pantry shop offering a selection of delicious ready made meals, beverages and snacks.

Costa Rica Ministry of Tourism, (ICT) stated there are 6,569 rooms in 299 hotels in northern Guanacaste and 1,414 rooms in 130 hotels in the southern part of the province. Totaling 4,571 rooms in 294 hotels. The Guanacaste Chamber of Tourism stated that it needs more than 1,000 additional rooms.

In closing, it certainly appears that the huge multinational company’s that are investing in Costa Rica see a tremendous opportunity. These large corporations have well-paid professionals who conduct in depth research and verify profit potentials before recommending a new location to be developed. Clearly, Costa Rica is going to enjoy much more prosperity before it will experience a real estate downturn as other industrialized nations are presently facing.

Written by Tom Rosenberger. With more than 25 years of homebuilding experience, 15 of which have been in Costa Rica, construction consultant Tom Rosenberger knows the ins and outs of building and remodeling homes in the Central Valley area of Costa Rica.

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.