Los Cabos Hotels and Commercial Property for Sale
Two operating hotels at the southern tip of Baja California Sur, offered as whole assets.
Los Cabos
The two towns
- San José del Cabo, colonial centre and art district
- Cabo San Lucas, marina and nightlife
- The corridor between them holds the large resorts
Coastline
- Sea of Cortez side calm and swimmable
- Pacific side dramatic and largely not
- The arch at Land's End
Access
- Los Cabos International Airport
- Direct flights across North America
- Year round demand
Diligence items
- Occupancy and average daily rate
- Management or franchise position
- Federal maritime zone concession terms
- Condition of plant and staffing
Our Los Cabos book is commercial only: two operating hotels, offered as whole assets. This is a different market from the Riviera Maya and a different kind of purchase.
Where it is
Los Cabos sits at the southern tip of the Baja California peninsula, where the Sea of Cortez meets the Pacific. It is made up of two towns about thirty kilometres apart. San José del Cabo is the older of the two, built around a colonial centre with an art district and a quieter, more residential feel. Cabo San Lucas is the resort end, with the marina, the arch at Land's End, the sportfishing fleet and the nightlife.
The corridor between them carries most of the large resort inventory. Los Cabos International Airport serves both and runs direct flights to a long list of North American cities, which is the structural reason the hotel market here works: it is one of the most accessible beach destinations in Mexico from the United States and Canada.
The Sea of Cortez side is calm and swimmable. The Pacific side is dramatic and largely is not. That distinction matters commercially and it is worth understanding before assessing any asset here.
What is for sale
Palmas Cortez, a 60 key oceanfront resort, at $215,000,000 USD. And the Comfort Inn Cabo San Lucas, a 171 key hotel of 49,030 sq ft, at $41,000,000 USD.
Both are operating businesses rather than real estate alone, and both are sold as whole assets rather than by the unit.
Who it suits
Hotel groups, institutional buyers and family offices looking for operating hospitality in a market with established year round demand and direct international lift. Also repositioning buyers, where the interest is in the site and the keys rather than the current operation.
What to watch
An operating hotel is bought on its numbers and its licences, not on its photographs. Occupancy, average daily rate, the management or franchise position, staffing, and the condition of the plant are what set the value.
Beachfront and near shore assets in Mexico carry the federal maritime zone concession at the shoreline, and the terms and remaining life of that concession are a material item on any coastal hotel.
Fuller information on either asset, including trading history and the operating position, follows a genuine expression of interest and a letter of intent.
The figures on this page are asking prices from our own current listings. They are not closed transactions and they are not comparables.
Los Cabos
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Frequently Asked Questions
Find answers to the most common questions about our properties, services, and buying process. If you need more help, feel free to reach out to us
Yes. Foreigners can own property in Tulum via a “fideicomiso”: a trust with a Mexican bank facilitated by a notary. The bank acts as a trustee and follows instructions from the property owner. Via this arrangement, foreigners can have all rights to use, occupy, lease, build, improve, and sell their property. On average, it takes 60 to 90 days to complete a property purchase. Tulum Land & Property works closely with a trusted team of lawyers and notaries who ensure that all legal processes proceed smoothly.Another way of owning property in Tulum is by creating a Mexican corporation. This is recommended when investors plan to own several properties.
Most pre-construction properties require a refundable deposit of $5,000 USD to secure the unit. Our properties are in high demand so this deposit secures the unit while contracts are drafted. Typically buyers make a down payment of 30% but larger down payments lead to larger discounts. The rest of the payments are made according to negotiable payment plans spreading the cost over the construction time, allowing investors to enjoy better liquidity before delivery.
Tulum real estate agents estimate the average annual ROI to be between 6% and 10%. This depends upon location, amenities, rental rates and design. Our team of experts at Tulum Land & Property focus on finding properties that generate 10% to 20% ROI per year.
For foreigners investing in Mexico, the best way to obtain finance is to do so at home. In the US, you may take a Home Equity Loan or Home Equity Line of Credit (click here). Buyers are able to repay their monthly loan payments with rental income from their vacation rental. During the high season in Tulum, a two-bedroom apartment can rent for up to $500 USD per night and villas can command over $1,000 USD per night. Financing in Mexico is typically 8%-9% plus fees and involves a lengthy process.
Closing costs are typically 7% of the property value. This includes the acquisition tax, recordation fee, certificate of no liens, municipal appraisal, legal and closing fees, and public notary fees. The yearly property tax in Mexico is typically 0.1% of the property value. HOA fees typically start from $2.5 USD per square meter per month depending on the amenities included. The cost of furniture and appliances must also be considered in your budget. Our team of experts can help you understand these costs, schedule a call with us to get started (click here).
To ensure a property has a clear title, conduct a title search through a reputable notary or legal professional. This process verifies that the seller has legal ownership and that there are no liens or encumbrances on the property. Working with experienced local professionals can help navigate this process.
Tulum is safe. Recent data shows that the crime index is in fact lower in Tulum than in major cities of the United States, such as Miami (see here). Occasional violent incidents usually do not involve foreigners and tourists, but are rather restricted to disputes between cartels. As for every destination prized by tourists, the usual precautions do apply in Tulum when it comes to irregular activities and behaviour. Many tips are available on forums for first-time travellers to Mexico on how to avoid scams and theft (example here).
Many of the condos and villas sold in Tulum come with amenities, depending on the location. Usual amenities include: pool, spa, rooftop, fitness and yoga centre, co-working space, etc.
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