Buying a Hotel in Mauritius: Complete Checklist

Published on October 31, 2025 and written by Cyril Jarnias

Buying a Hotel in Mauritius: A Visionary Investment

Purchasing a hotel in Mauritius, a true gem of the Indian Ocean, could be one of the most rewarding investments for visionary entrepreneurs. With its pristine beaches, breathtaking landscapes, and unique cultural atmosphere, Mauritius attracts millions of tourists each year, offering unlimited potential for the hotel sector.

However, before embarking on this exciting venture, it’s crucial to familiarize yourself with legal requirements, financing options, and management strategies suited to this booming market.

This guide provides a comprehensive checklist to navigate the purchase of your hotel smoothly and turn this island dream into a prosperous reality.

Overview of the Hotel Market in Mauritius

The hotel market in Mauritius is experiencing a gradual recovery phase in 2025, marked by significant shifts following the COVID-19 pandemic. Recent data shows a slight increase in visitor numbers (+1.6% in the first months of 2025 compared to the same period in 2024), indicating sector stabilization but also highlighting its dependence on traditional historical markets.

Recent Hotel Trends and Performance

• Occupancy Rate: After the pandemic shock, occupancy rates are gradually recovering, driven particularly by the massive return of European travelers and the “revenge travel” trend. Five-star hotels are showing particularly strong results.
• RevPAR (Revenue Per Available Room): The recovery is accompanied by a noticeable increase in RevPAR in upscale establishments, sometimes reaching levels comparable to pre-crisis times.
• Geographical Distribution: Hotels are mainly concentrated in highly sought-after beach areas such as Grand Baie (north), Flic-en-Flac (west), Belle Mare (east), and Le Morne (southwest).

Tourist Area	Hotel Concentration	Dominant Type
Grand Baie	High	Resorts & Boutiques
Flic-en-Flac	Very High	Luxury & Family
Belle Mare	Significant	Luxury
Le Morne	Moderate	Prestige Resorts

Recent Evolution and COVID-19 Impact

The pandemic caused a historic drop in international arrivals with a temporary collapse in the maritime segment. However, the crisis served as an accelerator to rethink the tourism offering around:

• Local authenticity,
• A clearer positioning between family, business, or luxury tourism,
• Enhanced promotion of natural and cultural heritage.

Diversification towards new source markets like East Africa or the Gulf is encouraged to reduce dependence on traditional European clientele.

Relevant Government Policies

The Mauritian government actively supports:

• Modernization and digitalization of tourism infrastructure,
• Opening towards sustainable tourism with tax incentives for eco-friendly projects,
• Strengthened international marketing strategies to attract foreign investors and high-end tourists.

Specific measures also encourage the creation of innovative concepts such as serviced residences or integrated vacation villages to expand the tourism offering beyond traditional complexes.

Popular Hotel Types

Tourists predominantly prefer:

• Five-star hotel complexes offering premium services,
• Family resorts with kids/teen clubs,
• Growing interest in intimate boutique inns and eco-lodges focusing on environmental sustainability.

New Investment Opportunities

The strong emergence of sustainable tourism opens an attractive field for investors wishing:

• To invest in green real estate projects incorporating modern ecological technologies,
• To explore the growing segment of long-term stays (“digital nomads”),
• To invest in diversifications like themed vacation villages or unique accommodations meeting new post-pandemic expectations.

Strategic repositioning around upscaling, new authentic local experiences, and sustainable development is now the main potential driver to transform this fragile recovery into lasting revival.

Key Steps to Acquire a Hotel in Mauritius

Legal and Administrative Process for Property Transfer

The property transfer of a hotel in Mauritius requires the mandatory involvement of a notary, chosen by the buyer. This professional prepares and formalizes the sale, verifies the compliance of property titles, and checks the property’s mortgage status. The buyer must also ensure the property is free of any debts or charges. For foreigners, specific conditions apply (minimum investment required to obtain a residence permit or acquisition through dedicated schemes like PDS). The process generally includes:

• Property selection
• Signing a preliminary sales agreement (promise)
• Notarial and administrative checks
• Final signing at the notary after obtaining necessary authorizations

Obtaining Operating Licenses

Hotel operations in Mauritius require several mandatory licenses:

• Tourism license issued by the Tourism Authority
• Health and environmental permits based on services offered (dining, spa, etc.)
• Registration with the Mauritius Revenue Authority for tax obligations

It’s essential to initiate these steps in advance to ensure legal continuity from the takeover.

Verification of Financial Statements and Infrastructure

Before any acquisition, conduct a thorough audit including:

• Detailed analysis of accounting records over several years
• Assessment of debt level, actual profitability, and recurring expenses
• Comprehensive technical inspection: general building condition, compliance with local standards (fire safety, etc.), communal facilities (pools, kitchens), deferred maintenance to anticipate

An independent report helps limit hidden risks.

Online Reputation Assessment

Digital reputation directly impacts commercial attractiveness. Therefore, it’s advisable to:

• Carefully examine customer reviews on major platforms (Tripadvisor, Google Reviews, etc.)
• Monitor social media to identify any recurring weaknesses reported by customers
• Quickly develop a corrective plan if needed to improve image and customer satisfaction

Management of Existing Staff and Transition

Human resource management during the acquisition is crucial:

• Meet individually with each key member to assess skills & motivations
• Identify potential training needs or organizational adjustments
• Communicate openly about the project to reassure teams & maintain their engagement during this pivotal period

It may be wise to gradually integrate new management practices while preserving local expertise.

Adaptation of Offers/Services to Local Market & Tourist Expectations

To succeed in positioning:

• Analyze dominant tourist profiles: geographical origin, specific expectations
• Adapt services offered: dining focused on local products/authentic experiences; cultural activities; sustainable development
• Modernize digital infrastructure: efficient online booking; adapted multilingual communication

Area	Recommended Action
Dining	Promotion of local products
Entertainment/Culture	Highlighting Mauritian traditions
Communication	Multilingualism / social media presence
Sustainability	Waste management/renewable energy

Sustainable Integration into Local Economy & Environmental/Cultural Respect

To ensure successful integration while respecting local identity:

• Prioritize purchases from Mauritian suppliers/farmers
• Employ local workforce primarily with fair HR policies
• Support community initiatives: sponsoring local cultural/sporting events
• Implement strict ecological policies: water/energy savings; reduction of single-use plastic; customer awareness of best practices

A sincere commitment to the local circular economy coupled with deep respect for Mauritian natural/cultural heritage is now a powerful competitive lever in this highly attractive island market.

The Importance of Due Diligence in Mauritian Hospitality

Due diligence is an absolutely crucial step when purchasing a hotel in Mauritius, due to the specificities of the local market and its particular legal framework.

Specifics of the Mauritian Market and Legal Framework

• Mauritius has a civil law close to the French Napoleonic Code, which may facilitate understanding for French-speaking investors but still requires local expertise to navigate procedures precisely.
• Foreigners must obtain a letter of intent and then authorization from the Economic Development Board (EDB) before any major real estate transaction, especially in the hotel sector.
• The Mauritian hotel market includes specific schemes like the Invest Hotel Scheme (IHS), allowing non-residents to acquire hotel units with certain usage rights and rental income under strict conditions.

These particularities make a thorough prior examination indispensable to avoid any regulatory or administrative risks.

Essential Aspects of Due Diligence

1. Financial Evaluation
   • Detailed analysis of past accounts and financial forecasts to measure actual profitability.
   • Verification of any debts and financial commitments related to the hotel.
2. Local Regulatory Analysis
   • Ensure all necessary authorizations have been obtained (EDB authorization, IHS compliance if applicable).
   • Compliance with local standards for urban planning, safety, and hotel operations.
3. Current State of Physical Assets
   • Complete technical inspection of buildings, equipment, and infrastructure to identify necessary work or hidden deterioration that could impact future costs.
4. In-Depth Contract Review
   • Meticulous analysis of ongoing contracts: commercial leases, supplier contracts, marketing partnerships… to detect restrictive clauses or latent risks.

Identification Through Due Diligence: Hidden Risks & Opportunities

A well-conducted due diligence notably allows:

• Revealing hidden risks like administrative non-compliance or latent disputes that could lead to sanctions or unexpected costs.
• Identifying untapped growth potential, for example through operational optimization or commercial development.
• Detecting significant opportunities for savings on fixed costs through precise auditing.

Environmental and Social Issues Specific to Mauritius

The island context also requires careful attention to:

• Sustainable management related to limited natural resources (drinking water, energy), directly impacting hotel operations.
• Compliance with local environmental standards often strengthened regarding waste treatment or coastal protection.
• Social issues related to the local community that can influence the reputation & social acceptability of the hotel project.

Due Diligence Aspect	Specific Importance to Mauritian Market
Financial Evaluation	Rigorous verification necessary due to IHS model
Regulatory Analysis	Mandatory EDB authorization + IHS compliance
Physical Inspection	Tropical climate impacts wear; maintenance importance
Contract Review	Multiplicity of local/international contracts
Environmental Issues	Limited resources & strict regulations

Important Note: Without rigorous due diligence adapted to the local Mauritian context—including its complex legal particularities and island environmental issues—a hotel investment can carry major financial risks and miss essential strategic opportunities crucial for its lasting success in this unique market.

Tourism Statistics and Trends in Mauritius

Recent Statistics on Tourist Influx to Mauritius

For the period from January to May 2025, Mauritius welcomed approximately 565,636 tourists, a slight increase of +1.6% compared to the 557,133 visitors recorded during the same period in 2024.

The main source markets remain Europe (notably France with +6.1%, Italy with +8.2%), followed by India (+4.5%) consolidating its position as the second source market. The United Kingdom and Germany, however, show a slight decline.

Nationality	Trend (Jan-May 2025)
France	+6.1%
Italy	+8.2%
India	+4.5%
United Kingdom	Slight decline
Germany	Slight decline

Seasonality and Fluctuations in Tourist Arrivals

• The high tourist season generally extends from October to April when the climate is warm and humid.
• The low season corresponds to the cooler and drier months from May to September.
• In early 2025:
  • January: -2%
  • February: -12.1%
  • March: -3.8%
  These declines are attributed to the global economic slowdown and increased competition in the region.

Current Tourism Market Trends

The following trends are shaping the sector:

• Development of sustainable tourism and ecotourism to meet the expectations of travelers sensitive to environmental preservation.
• Rise of high-end/luxury tourism with the opening or renovation of five-star hotels targeting affluent international clientele.
• Growth of experiential tourism (authentic local cultural activities).

Economic Impact of Tourism

The sector significantly contributes to Mauritius’ GDP:

• Tourism traditionally represents between 20% and 25% of the national GDP.
• It is a major pillar for direct job creation (hospitality-dining) but also indirect jobs via transport or related services.

Recent Developments in Tourism Infrastructure

Several structuring investments are observed:

• New hotel openings targeting the luxury/eco-luxury segment
• Major renovations in some existing complexes to attract demanding clientele
• Diversification towards alternative accommodations such as private villas or eco-lodges

These developments support the qualitative repositioning of Mauritius in the face of growing regional competition.

Future Forecasts & Influential External Factors

The sector is counting on a gradual but cautious recovery. Prospects remain favorable if several conditions are met:

• Maintenance of attractive government policies for foreign investors
• Rapid adaptation to new international expectations (digitalization of customer services – sustainable offering)
• Increased consideration of environmental issues limiting negative impacts related to overtourism

However:

• The future remains dependent on global economic fluctuations,
• Potential new health crises,
• And especially very dynamic regional competition that could impact traditional flows to Mauritius.

Relevance for Investing in a Hotel

Recent figures confirm that despite some temporary fluctuations linked to the uncertain global context, Mauritius maintains its position as a flagship destination for a loyal international clientele. Structural transformations—hotel upscaling and diversification—thus offer real potential for any investor wishing to capitalize on these new sector dynamics. However, a fine analysis of product/market positioning remains crucial to ensure lasting profitability in the face of current competitive challenges.