Costa Rica: A top investment pick among hotel, restaurant giants

Costa Rica is unarguably one of the most popular tourist destinations in the world. In the past two decades, it has built a reputation as a fun and safe vacation spot with a focus on ecotourism.

Over a million tourists are drawn to the country's natural beauty every year, with those from US and Canada accounting for about 50 percent of it. Visitors, especially the ones travelling for business or leisure, have a plethora of options to choose from in accommodations and outdoor experiences.

High standards arising from growing tourism has made Costa Rica an attractive market for foreign investments. The past few years have seen several international hotel and restaurant brands working to establish and grow their presence in the country, especially along the coastal areas and capital San Jose.

Global hotel brands in Costa Rica

Popular upscale hotel brands that have prominence in Costa Rica include Marriott, Four Seasons, St. Regis, Holiday Inn (IHG), Wyndham and Hilton.

In September, Marriott International announced its agreement with Saxum Group to develop two hotels, each in Alajuela and Curridabat. This move will take the hotel giant's Costa Rica portfolio to 17 hotels. Marriott currently has operational properties in San Jose, Puntarenas and Guanacaste.

Earlier this year, Hilton Hotels & Resorts launched La Sabana in Costa Rica’s tallest building—Leumi Business Center—situated in the up-and-coming Sabana Norte area, close to Juan Santamaria International Airport. 

The launch came just months after Hilton had opened Hilton Garden Inn hotel in Santa Ana. This indicated Hilton's confidence in the market despite the crisis in the tourism sector due to the Covid-19 pandemic. 

Four Seasons's presence in Costa Rica is marked by a five-star luxury resort at Papagayo Peninsula, which opened in the country's North Pacific coast in 2003. In 2017, the property completed a $35-million renovation, which gave a makeover to over 180 accommodations.

The Westin also has a noteworthy presence, with its carbon-positive, all-inclusive golf resort and spa near the beautiful Playa Conchal beach. 

Restaurants chains in Costa Rica

According to the National Franchise Center (under Costa Rican Chamber of Commerce), there were approximately 94 food franchises operating in the country in 2017.

The Capital Grille, PF Chang's, Hooters, Denny's, Hooligans, Olive Garden, TGI Friday's, Chili's, Outback Steakhouse, Johnny Rockets, Starbucks, and Cosí are some of the international restaurant chains present in Costa Rica. 

AR Holdings business group was behind the recent arrival of the US-based Italian restaurant Olive Garden and the upscale steakhouse brand The Capital Grille in Costa Rica. 

The first two Olive Garden restaurants opened in 2020 while the third location is expected to open in 2022. The investment for each restaurant is said to have been approximately $1.3 million.

The Capital Grille opened its Costa Rica location in August 2021 in Escazú, next to Residence Inn by Marriott.

TGI Friday's has one franchise, which is currently owned by Roberto Rojas and Juan Carlos Rojas (current president of Costa Rican football team Deportivo Saprissa).

Costa Rica, a famed coffee producer, is home to 15 establishments of coffeehouse giant Starbucks. It also has Hacienda Alsacia—the only Starbucks coffee farm in the world. The 600-acre farm is open to public and has been the company's global research and development facility since 2013.

The Central American country was designated by 2021 World Travel Awards as the best tourist destination in Mexico and Central America. It was also named the third-most desirable country by international travellers for the 2021 Wanderlust Travel Awards.

Though several businesses suffered heavy losses last year due to the shutting down of borders, Costa Rica is now taking active measures to revive tourism.

According to Central America Data, Costa Rica's average hotel occupancy had dropped to 52 percent in 2020 from 95 percent in 2019. The figures are expected to show improvement with the pace of global vaccination rate and increasing tourist activity.