Hotel for Sale

Multiple reports say the North Coast of Ecuador is safer these days than years ago when the "pandilleros" were coming across the border and causing some problems.  The policing authorities have stepped up their presence in the region.

But do your safety due-diligence (including the U.S. State Department website) before considering property acquisition in remote areas of northern Ecuador.

cccmedia in Quito

I have lived in the Northern part of Ecuador for one and a half years and have never had a problem with crime. This property is located in the country outside the big city within a highly secure gated community. The people in the Northern part of Ecuador have been nothing but kind and very helpful. I disagree with this blanket statement from a person who probably has never been to this particular area.

Performing due-diligence before investing in a remote property is prudent action for any investor.

A seller should repect that.

cccmedia in Quito

Luna2 wrote:

I have lived in the Northern part of Ecuador for one and a half years and have never had a problem with crime. This property is located in the country outside the big city within a highly secure gated community. The people in the Northern part of Ecuador have been nothing but kind and very helpful. I disagree with this blanket statement from a person who probably has never been to this particular area.

I have never been to Iraq, won't be moving there any time soon.
One would expect a used car, er used hotel salesman to overstate his case.
Everybody does everything for personal reasons.

@ Luna2 > Can you please post your offer in the Business for sale in Quito section or in the Business partners classifieds in Quito section? It would be more appropriate.

Thanks

Priscilla 

Do you have pics of the hotel, and i would like to know the price

CARMEN ALICIA wrote:

Do you have pics of the hotel, and i would like to know the price

Bored working so I searched and found these listings for you to look at:

http://www.mondinion.com/Hotels_for_Sal … y/Ecuador/

and

http://www.viviun.com/Real_Estate/Ecuador/Hotels/

And, as a bonus, "Seven Secrets to a Successful Hostel Business in Ecuador"
http://ecuadorrealestate.org/hostels-fo … n-ecuador/

CARMEN ALICIA wrote:

Do you have pics of the hotel, and i would like to know the price....

The asking price -- $1.25 million -- and dozens of photos are accessible via the Facebook link the OP listed at the top.

This "structure" that the OP described that is now "available for your finishing touches" apparently is a concrete shell for a future hotel, currently with plumbing and electric, a water heater and one completed bathroom.

That the seller put this up for sale mid-project just weeks after the shell was completed -- the OP first posted this property as for-sale on Expat.com Ecuador last October -- and that the reason for trying to sell it so soon is undisclosed...are red flags.

cccmedia in Quito

Yes you are correct.  You can go to my Facebook page for information and pictures.
https://www.facebook.com/pages/Ecuador- … 7833794494

As for putting it up for sale, I had a personal tragedy, which I will not air on this forum.  But if interested in the property I would share my story.

Yes the building is complete with all plumbing and electrical. The finishing touches needed are windows and tiles throughout. One bedroom is finished, were we lived, as is one bath. Decided the new owner might want to pick there color scheme and style. The price is negotiable of course, but if you look at the amount of land, the location, the building, the list goes on.

If anyone has the time they should click on the website underneath Luna2's name, and have a read. It's a very good read. God bless the free marketplace. I wish Luna nothing but the best in getting the asking price.

Luna, the problem you are going to have is that
1. The area is questionable. Even if it is very safe, that is not the perception. Most people aren't going to put big bucks down on a questionable area.
2. You have only a shell, or perhaps a bit more of a structure up. An investor wants to see solid provable numbers. At 1.25 million, and 6, or was it 7 bedrooms? At any rate just crunch the numbers to see what the average cost has to be to have a 10% ROI, which is what almost any investor is going to want to make. Even based on full occupancy 365 days a year, the cost you'd need to charge per night is quite high.
3. This would be a 1.25 million dollar speculation for an investor. 1.25 million can buy very good rental properties in other places throughout the world with proven, and reliable ROI's.
4. Unless you can prove to someone where the profit is going to come from, then you are going to have a very tough time selling the place.

It is a beautiful piece of land, but from an investment perspective, that is all it is. You have the value of the land, and not much more. Am sure you put some big bucks in the structure, but that was your dream, and not someone elses dream. People aren't going to pay a premium for your dream, and what you have an emotional attachment to.

I really do wish you the best of luck, but you also have to be realistic to the fact that this property at this price will probably not sell. If you are lucky you'll walk away with a profit, but the ugly truth behind real estate is that many people eventually wind up taking large losses.

j600rr wrote:

If you are lucky you'll walk away with a profit, but the ugly truth behind real estate is that many people eventually wind up taking large losses.

So for income tax purposes you will have a long term capital loss, something to look forward to.

mugtech wrote:

j600rr wrote:

If you are lucky you'll walk away with a profit, but the ugly truth behind real estate is that many people eventually wind up taking large losses.

So for income tax purposes you will have a long term capital loss, something to look forward to.

Lol, always looking on the bright side of things ha? But guess you always have to try and make the best out of a bad situation.

Anyway, back to the point. It will probably be tough for Luna to get anywhere near the current asking price, but if you read Luna's blogs it's pretty obvious that everything is completely legitimate. She came to a foreign country, and took a chance on a dream. For whatever reason it hasn't worked out for her. Think she deserves a lot of credit, and hope she makes a nice profit on the property.

Thank you for you well wishes. It is nice to have positive comments posted on these forums. Yes I do agree with your comments. But as for the perception of it being a dangerous area, that is changing rapidly. More and more ex pats and tourists are heading up this way everyday. There was even an article in the New York Times about it. Plus my place is located within a high end gated community.

nytimes.com/2015/03/08/travel/hidden-gems-on-ecuadors-emerald-coast.html?smid=fb-share&_r=1

Up the road is the only other hotel in the area, which is mentioned in the article above. This place charges fifty dollars a night and is on the rustic side, and that place is very profitable. There is a large need for accommodations in this area.  A higher end place with screens, a better view, indoor toilets, etc, could at least charge the same or more. Plus sitting on 2.4 hectares or 6 acres you have so many possibilities. Build some cabins on the cliff overlooking the ocean, sell a piece of the land, start a profitable fruit business, endless. As for the asking price, that is negotiable of course. Thanks again for the kind words.

The price for that particular area is totally insane. I contacted the seller on facebook a couple weeks ago just out of morbid curiosity to see what piece of n coast land might justify such a price. I would put the real value at around 200k.

SawMan wrote:

CARMEN ALICIA wrote:

Do you have pics of the hotel, and i would like to know the price

Bored working so I searched and found these listings for you to look at:

http://www.mondinion.com/Hotels_for_Sal … y/Ecuador/

and

http://www.viviun.com/Real_Estate/Ecuador/Hotels/

And, as a bonus, "Seven Secrets to a Successful Hostel Business in Ecuador"
http://ecuadorrealestate.org/hostels-fo … n-ecuador/

Love the bonus!!

Richard L'Amore
Ecuadorguru.com

Have hostil and building cabanias in Pululahua
Ecuador. Would like to hear more about your project. 1-210-209-7098

Okay so I am interested in learning more about this opportunity. Are you seeking a partner financially or a partner in terms of someone, professional, from the USA who can take the business and turn it around, manage it while you do what is needed in your own personal life.

A hands on partner without all the upfront fiscal interests?

Please inform me of your ideal scenario.

Thanks Cyndi

Cjwc wrote:

Are you seeking a partner financially or a partner in terms of someone, professional, from the USA who can take the business and turn it around, manage it...

A hands on partner without all the upfront fiscal interests?

Please inform me of your ideal scenario.

No flooring, no windows, no guests -- what business?

This seller's "ideal scenario" is evident:  sell for $1.25 million....and out!

cccmedia in Quito

Got it, thanks!