Published on and written by Cyril Jarnias
Buying a Hotel in Morocco: An Opportunity to Seize
Buying a hotel in Morocco is an ambitious venture, blending the promise of a vibrant tourism opportunity with the challenges of an international real estate investment. With its rich cultural heritage and diverse landscapes, Morocco attracts millions of visitors each year, making the hotel sector particularly appealing.
However, this project requires a deep understanding of local specifics, current regulations, and market nuances.
A Complete Checklist for Your Project
In this article, you will discover a complete checklist that will guide you through all the essential steps:
- Identifying the ideal location
- Legal considerations
- Key financial aspects
These elements will help you turn your dream into a prosperous and well-planned reality.
Good to Know:
Morocco offers attractive tax benefits for foreign investors in the hotel sector, under certain conditions.
Overview of the Hotel Market in Morocco
The Moroccan hotel sector is undergoing significant evolution with promising growth projections, moving from USD 0.81 billion in 2024 to USD 1.12 billion by 2029, representing a compound annual growth rate (CAGR) of 6.72%. This progress occurs within a dynamic tourism development context, although recent fluctuations have been observed.
In March 2025, the sector experienced a notable decline, with the overall hotel occupancy rate dropping to 43%, 7 points lower compared to March 2024. Paradoxically, this period also saw an increase in the average revenue per room (RevPAR), illustrating a pricing strategy despite the decrease in foot traffic.
The year 2023 had shown very encouraging signs with significant growth in international tourism, which surged by 54% compared to 2022, reaching 17.1 million visitors. Domestic tourism also grew by 9%, with 8.6 million visitors.
The Moroccan hotel market is characterized by a diverse offering including:
- Chain hotels and independent establishments
- Serviced apartments
- Budget hotels
- Mid-range and upscale establishments
- Luxury hotels
This diversification meets the different expectations and budgets of travelers, as evidenced by the evolution of overnight stays by category between 2022 and 2023:
| Accommodation Category | Growth 2022-2023 |
|---|---|
| 5-star hotels | 28% |
| 4-star hotels | 35% |
| Hotel clubs | 44% |
| Guest houses | 79% |
| Other accommodations | 107% |
The particularly strong growth of guest houses (+79%) and alternative accommodations (+107%) reflects a shift in traveler preferences towards more authentic and personalized experiences.
Occupancy rates also saw notable improvement between 2022 and 2023, with an overall 37% increase in total visitor numbers. Guest houses recorded the highest growth in occupancy (+28%), followed by luxury hotels (+22%) and 4-star establishments (+20%).
In terms of trends for 2025, the hospitality sector is placing increasing importance on sustainability, now encompassing environmental well-being, employee welfare, and local community health. This focus aligns with the expectations of contemporary travelers, who are increasingly sensitive to ecological and social issues.
The Moroccan real estate market, closely linked to the hotel sector, also shows moderate changes with a nominal increase of 0.8% for apartments (a slight decrease of 0.1% after adjusting for inflation) and a minimal increase of 0.1% for houses.
These mixed trends reflect a sector in transformation, facing cyclical challenges but benefiting from solid fundamentals and an ambitious national tourism development strategy.
Good to Know:
The hotel market in Morocco has experienced notable growth in recent years, with an increase in investments in the sector, particularly thanks to infrastructure projects supported by the government aimed at boosting tourism. The diversity of the hotel offering ranges from luxury hotels to budget establishments, thus catering to different market segments. Key tourist destinations like Marrakech, Casablanca, and Fez continue to strongly influence demand, attracting both international and domestic tourists. Occupancy rates have shown an upward trend, reaching around 65% in some regions, while revenues generated by the sector have increased in correlation with the growing number of visitors. International tourists, mainly from Europe and North America, show a preference for authentic cultural experiences and stays combining relaxation and discovery, which could influence future hotel development strategies in Morocco. Government initiatives, such as the Vision 2020 plan, aim to attract even more foreign investment, promising a dynamic and expanding hotel market for years to come.
Key Steps to Buying a Hotel in Morocco
Property Search and Selection
- Identifying strategic locations is paramount: prioritize high-potential tourist areas, close to points of interest, transport routes, or in cities with high foot traffic.
- Regularly consult specialized hospitality real estate listings and professional platforms to broaden your options.
- Plan visits to several establishments to compare overall condition, capacity, commercial positioning, and improvement potential.
- Assess the local competitive environment as well as the reputation of each establishment.
Legal Validation
- Carefully examine property titles to ensure they are authentic and free from undisclosed disputes or mortgages.
- Verify that the hotel has the necessary operating permits issued by the relevant authorities (municipality, Ministry of Tourism).
- Check compliance with local standards (urban planning, fire safety) and national standards (hotel classification, hygiene), as well as the existence of any specific licenses, such as for serving alcoholic beverages.
Financial Evaluation
To ensure a profitable investment:
| Step | Description |
|---|---|
| Analysis of financial statements | Review recent balance sheets, income statements, and debts |
| Current profitability | Calculate the average annual occupancy rate, average room rate/night |
| ROI potential | Evaluate return on investment under different scenarios |
Practical tips:
- Rely on an accountant specialized in hospitality
- Compare with the average performance of the local sector
Negotiation and Purchase Offer
Effective strategies:
- Gather all useful information during visits (required renovations, furniture condition)
- Negotiate the price considering not only the market but also necessary investments
Draft a formal offer specifying:
- The proposed amount
- Contingency conditions (obtained financing, legal validation, etc.)
- The preliminary timeline
Due Diligence
The due diligence period allows for thorough verification:
Checklist:
- Complete technical inspection: main building as well as ancillary equipment
- Detailed inventory: existing furniture/technical equipment included in the sale
- Legal audit: review all current contracts (key suppliers/customer loyalty programs/staff)
Practical tip: engage a specialized firm if needed.
Financing the Purchase
Options available in Morocco:
| Solution | Advantages | Points to Watch |
|---|---|---|
| Bank loan | Sometimes attractive rates for tourism | Personal contribution often required |
| Private investors | Shared financial risk | Possible constraints on management |
| Local partnerships | Easier access to local network | Clear governance distribution |
Preparing a solid financial file with a strong business plan significantly increases your chances with banks or partners.
Finalization and Transfer
Essential steps:
- Signing before a Moroccan notary after final validation of the administrative file
- Official registration with the land registry guaranteeing your final title
- Effective transfer including physical handover of keys/administrative documents related to staff/supplier contracts
Practical tip: always request a certified true copy after each administrative step.
Post-Purchase Planning
Recommended actions:
- Quickly develop an operational strategy tailored to the desired positioning
- Launch internal audits to identify urgent renovation/modernization needs
- Implement a targeted digital marketing plan for key segments: international OTAs/local agencies/tour operators
Post-acquisition checklist:
- Recruit qualified management if necessary
- Carry out priority work without disrupting existing commercial activity
- Deploy communication campaign/update digital presence
By following these structured steps, any investor maximizes their chances of successfully acquiring and then profitably running a hotel in Morocco while limiting unexpected legal or financial risks.
Good to Know:
To buy a hotel in Morocco, start by researching strategic locations and consulting real estate listings, visiting several establishments to assess their potential. Verify the hotel’s legal compliance with property titles, operating permits, and local regulations. A precise financial evaluation is essential, encompassing the analysis of financial statements and profitability potential. Negotiate the price by drafting a formal purchase offer. Conduct rigorous due diligence including a technical inspection and evaluation of current contracts. Explore financing options like bank loans or partnerships. Finalize the purchase with the signing of the sale deed before a notary and registration with the land registry, followed by the property transfer. After the purchase, plan management, consider renovations, and develop marketing strategies to attract customers.
Guide to Hotel Due Diligence in Morocco
Key steps for hotel due diligence in Morocco:
- Engage a local expert accountant from the start of the process to guide the analysis according to Moroccan standards.
- Sign a confidentiality agreement with the seller.
- Establish a list of specific information requests by the mandated firm, including legal, tax, and operational documents required by Moroccan legislation.
- Compile and make documents available in a secure data room for review by the buyer and their advisors.
- Detailed analysis of information, Q&A exchanges to clarify technical or disputed points according to local regulations (land titles, urban planning compliance, legal statuses, etc.).
- Draft a comprehensive report highlighting identified risks and recommendations on the appropriate legal/tax structuring.
Key Financial Considerations:
List of points to verify:
- Certified financial statements for several fiscal years (balance sheet, income statement).
- Details of existing bank or private debts (including amortization schedule).
- Analysis of actual declared revenue vs. potential of the local tourism market.
- Existence of tax or social disputes that could impact future profitability.
- Budget forecasts/business plans validated according to regional economic realities.
| Financial Element | What to Check |
|---|---|
| Financial statements | Certification/reliability/accuracy |
| Debts | Exact amounts/nature/creditors |
| Profitability | Historical results vs. realistic projections |
| Taxation | Filing regularity/audit risks |
Infrastructure Assessment:
Essential checks:
- Detailed physical inspection: rooms (general condition/furniture), common areas, leisure equipment (pool/spa/gym), technical installations (heating/AC/hot water).
- Compliance check with local standards: fire safety, accessibility for people with reduced mobility, food hygiene, etc.
Geographic and Environmental Analysis:
Sensitive points to evaluate:
- Immediate proximity to major tourist sites: direct influence on seasonal occupancy rates
- Road accessibility: distance to main roads/airports/train stations
- Local natural/environmental risks: flooding/seismicity/noise pollution
Review of Licenses/Permits & Taxation:
List of essential checks:
- Actual presence of the hotel operating permit issued by the competent Moroccan authority
- Additional necessary licenses: alcoholic beverage license/restaurant/ancillary activities
- Regular tax situation: Corporate Tax/Tourism/VAT/local business tax paid without arrears
Professional Recommendations:
It is highly recommended to surround yourself from the outset with:
- A lawyer specialized in hospitality in Morocco to analyze all contractual/local legal aspects
- An accountant familiar with the Moroccan tourism sector to ensure all financial/tax analyses are reliable
- Local technical consultants to precisely audit the actual condition of buildings/infrastructure
These partners bring a fine-tuned knowledge of the Moroccan regulatory context and effectively protect against any hidden risks during your acquisition.
Good to Know:
During due diligence for buying a hotel in Morocco, it is crucial to address local legal specifics, particularly regarding compliance with Moroccan regulations and verification of necessary operating licenses. A thorough review of financial statements and existing debts is essential, as is evaluating profitability forecasts before acquisition. Prioritize inspecting the quality of infrastructure such as rooms, leisure equipment, and safety installations to avoid unexpected expenses after the purchase. Consider risks related to the hotel’s geographic location, examining its accessibility and tourist appeal. Do not forget to consult local experts, including lawyers and accountants, who have a deep understanding of the Moroccan regulatory and tax framework to facilitate the process. These specialists can also help identify potential tax implications and avoid unknown issues.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
