Buying a Hotel in Monaco: Complete Checklist

Published on October 4, 2025 and written by Cyril Jarnias

Acquiring a hotel in Monaco, one of the world’s most prestigious destinations, is an ambitious project requiring meticulous preparation. Nestled between the Mediterranean Sea and the majestic Alps, this jewel of the French Riviera offers an exceptional setting combined with a strong economy, attracting numerous investors to the luxury hospitality sector.

Before embarking on this venture, it’s crucial to consider a comprehensive checklist to ensure your investment’s success. From verifying necessary licenses and permits to evaluating the local real estate market dynamics, every detail matters when navigating this unique business environment.

This article will guide you through essential steps and potential pitfalls to transform your dream of buying a hotel into a prosperous reality in the Principality.

Monaco Hotel Market Overview

Size and Structure of Monaco’s Hotel Market

The Monaco hotel market is distinguished by its compact size yet high-end positioning, consistent with the Principality’s limited area and international standing. Monaco features approximately 2,500 rooms distributed across about twenty hotels, including

Hotel Purchase Guide for Monaco

The hotel real estate market in Monaco is distinguished by an extremely limited supply, some of the world’s highest prices, and consistently strong demand, particularly in the luxury segment. In 2025, growth continues, driven by record residential real estate sales (€2.6 billion in the first quarter of 2025) and remarkable stability even during international volatility. This dynamic also affects the hotel sector: the scarcity of properties for sale and the appeal of event tourism (F1 Grand Prix, Monaco Yacht Show) ensure hotels have strong occupancy and valuation potential.

Current Trends & Forecasts

• Square meter prices exceeding €50,000 for prime properties; upward trend expected for super-prime products.
• Increasing scarcity with few new opportunities: any launch immediately attracts international investors.
• Neighborhoods benefiting from recent real estate developments (Mareterra/Testimonio II) see enhanced attractiveness.

Most Sought-After Neighborhoods for Hotels

Neighborhood	Main Characteristics
Monte-Carlo	Proximity to casinos/opera houses/historic grand hotels; international high-end clientele
Larvotto	Waterfront, access to private beaches, new Mareterra development
Fontvieille	Modernity, lively port/sporting events
La Condamine	Commercial/traditional heart; proximity to F1 circuit

Key Criteria When Purchasing

• Location: Immediate tourist/event visibility
• Size & Number of Rooms: Balance between capacity/profitability/operational ease
• Services Offered:
  • Fine dining restaurant or lounge bar
  • Spa or wellness area
  • Event/conference rooms

Concrete Example: A boutique hotel in Larvotto with sea views and private spa attracts premium clientele while benefiting from high occupancy during summer season.

Local Regulations & Legal Requirements

• Prior authorization mandatory from the Tourism Department for any hotel opening/takeover.
• Strict compliance with fire safety/accessibility/food hygiene standards.
• Recruitment under Monegasque law; nationality quotas applicable for certain positions.

Brief list of mandatory procedures:

• Official application to the Princely Government
• Urban planning/safety compliance validation
• Specific approval if ancillary services (spa/restaurant)

Hotel Financial Evaluation

“Analysis must incorporate average revenue per available room (RevPAR), annual average occupancy rate as well as fixed/variable costs…”

Essential points:

• Revenue: Room nights + dining + ancillary services + event privatizations;
• Expenses: Salaries (+ high social contributions), energy/water/Monaco-specific taxes;

Simplified Table:

Financial Indicator	Sample Annual Value
RevPAR	€420
Occupancy Rate	80%
Average Net Margin	Between 18% and 27%

Practical Advice: Hiring a local accountant familiar with Monegasque fiscal/labor specifics is highly recommended.

Financing & Tax Incentives

Available options:

• Local bank credit possible through partner institutions subject to strong personal contribution/experienced investor;
• Financial structures sometimes including institutional partnerships or international family offices;

Tax advantages:

Hotel companies generating over 75% of revenue outside the Principality potentially benefit from partial ISB tax exemption on certain income – a scheme reserved for genuinely international structures.

To Go Further:

Legal Aspects and Hospitality Due Diligence

Legal Obligations When Purchasing a Hotel in Monaco

Acquiring a hotel in the Principality of Monaco involves complying with several mandatory legal obligations, concerning both real estate ownership and commercial operation.

Real Estate Ownership Regulations and Hotel Licenses:

• Only individuals or legal entities having received prior authorization can acquire commercial real estate in Monaco intended for hospitality use.
• Hotel operation requires a specific license issued by Monegasque authorities, with strict requirements regarding property destination and compliance with local standards.
• The protective commercial lease status applies if the operator is a merchant, has operated a business for at least three consecutive years, and maintains an independent clientele.

Due Diligence Process:

Essential Checklist:

• Verification of property titles to ensure no encumbrances or mortgages burden the property.
• Thorough review of ongoing contracts, particularly those related to hotel franchises or existing commercial partnerships.
• Detailed examination of financial obligations: bank debts, potential disputes, taxes due, or unpaid social charges.
• Analysis of lease status, particularly to verify if the commercial lease benefits from the protective regime under Monegasque law n° 490.

Step	Key Points
Title Verification	Title authenticity; absence of mortgages/encumbrances
Contracts	Franchise/hotel analysis; termination conditions
Obligations	Existing debts; social/fiscal liabilities

Tax Implications:

Applicable taxation will primarily depend on legal status (local or foreign company) and may include transfer duties on real estate purchase as well as applicable VAT according to services provided.

Quality & Safety Standards:

Regulatory List:

• Strict compliance with local fire safety and accessibility standards for people with reduced mobility.
• Compliance with health standards imposed on public establishments.

Staff Responsibilities – Labor Law:

Mandatory List:

• Strict application of Monegasque labor law (written contract mandatory).
• Compliance with applicable collective bargaining agreements in the local hotel sector.
• Obligation to pay all social contributions to competent organizations.

Ensuring each step undergoes thorough analysis by a lawyer specialized in Monegasque real estate and commercial law is essential.
Collaboration with an accountant familiar with local taxation along with an experienced hospitality professional guarantees not only legal compliance but also seamless operational transition.

Impact of Tourism Statistics on Hotel Real Estate

Tourism statistics play a decisive role in hotel real estate investment decisions in Monaco. Recent data reveals positive dynamics, with a three-point increase in hotel occupancy rates and a 5% rise in average room rates in 2024 compared to the previous year. This growth is supported by the recovery of business tourism and diversification of source markets, including the United States and Middle East.

Investors carefully analyze these trends to anticipate profitability potential. A continuous rise in occupancy rates indicates not only strong demand but also an environment favorable to rate increases, directly translating to better margins for hotel operators.

Seasonality is also a key factor in planning and purchasing a hotel in Monaco. The summer season traditionally sees significant occupancy peaks due to mass vacationer returns, while the rest of the year heavily depends on the local event calendar (conferences, international exhibitions). Annual tourist flows thus influence pricing strategy: maximizing revenue during high season while maintaining satisfactory minimum occupancy during off-season through business or international clientele.

Recent Statistical Data on Monaco Hospitality (as of January 1, 2025):

Category	Number of Hotels	Total Number of Rooms
Total	57	2,075
1 Star	1	16
2 Stars	7	187
3 Stars	23	941
4 Stars	8	509
5 Stars	4	127
Unclassified	14	295

Some Recent Illustrative Figures:

• Rising tourist arrivals: +28%, from 172,038 to 220,053 visitors in a recent period.
• Average stay duration: Notable increase (+9.2%), allowing growth in total room nights consumed.
• Monthly occupancy rate: Nearly 30% in January/February; up to 45% by March during first major spring events.

Direct impact on financial forecasts is major:

• Higher occupancy enables potential buyers to adjust their business plans with fewer off-season under-occupancy risks.
• Positive evolution in average room rate provides more levers to optimize their revenue per available room (RevPAR).

Operational management is consequently affected: it becomes essential for potential buyers to adapt their HR strategy (temporary recruitment during peaks), refine commercial policy according to event calendar, and potentially reposition their establishment according to dominant expected clientele each season (leisure vs business).

Major External Factors:

International events organized in Monaco – such as F1 Grand Prix, Yacht Show, or medical congresses – generate several temporary but significant peaks in local hotel attendance annually. These events not only boost average daily rates but can temporarily push rates well beyond usual levels; they therefore encourage some investors to prioritize either purchase or high-end renovation to capture this occasional premium clientele while securing annual revenues.

“The objective is maintaining momentum on long-haul destinations Particular attention will be paid to European visitors outside peak attendance periods”

In conclusion, statistical trends provide investors with precise benchmarks to calibrate investments, plan commercial strategies, and adapt budget forecasts facing structural or cyclical variations specific to the Monegasque market.