A ten-island archipelago just off the west coast of Africa, Cape Verde is a tropical paradise in the middle of the Atlantic Ocean. Boasting 350 days of sunshine, temperatures are consistently between 25°C and 30°C and the waters surrounding the Islands are crystal clear. Cape Verde is famous for their ‘No Stress’ mantra and laid back lifestyle, making it the ideal holiday destination.
Tourism numbers have increased 115% since 2000 and are expected to double again by 2024. This thriving tourism is thanks, in part, to the impeccable Cape Verdean hospitality standards, as well as the year-round high climate. This fast-growing interest has led to high levels of demands for quality accommodation, often outstripping supply considerably, which is why The Resort Group PLC earmarked the country as the perfect chance for rewarding property investment.
The recent and on-going prosperity of the Cape Verde Islands is largely connected to the continual growth in tourism. However, this has been combined with a democratically elected and stable government structure and a clear strategy to develop the Islands in line with that increasing touristic demand.
This strategy includes key infrastructure improvements and modernization, including supporting foreign investment and leisure development, as well as modernizing the utilities, telecommunications and transport links. In addition, efforts have been concentrated on increasing investment in social projects and improving the quality of life for the Islands’ inhabitants as new opportunities become available to them. There is also considerable investment in key education and housing projects.
Tourism analysts predict the Islands are set to rival beach Resorts in the Caribbean and the Canaries over the next decade and here’s why:
- All-year round tropical climate with no low season or hurricanes
- A renowned sunshine destination with some of the best beaches in the world
- Access routes being opened all the time from many major European cities, opening up new markets and increasing the supply of visitors
- Strict environmental controls and regulations for tourism development prohibit the building of high level, high density projects, providing further safeguards against over-supply and poor quality developments
- Current levels of tourism demand far outstrips the supply of high quality Resort accommodation – a trend that is projected to continue well into the future
As tourism develops, the industry has adjusted – with tour operators, flight planners and the leisure trade coming to the fore as interest in Cape Verde has increased rapidly.
- Since 2005, additional flights have been added from Amsterdam, Milan, Lisbon and Paris, among many others
- Direct contribution of travel and tourism to the Gross Domestic Product is predicted to rise by 5.9% pa to CVE48.9bn (18.6% of total GDP) in 2025
- A deal between The Resort Group PLC and a leading travel operator guaranteed one million guests to our Resorts over the course of three years
- In the World Forum tourism rankings Cape Verde has gained places in business environment, air transport infrastructures, competitiveness of prices and environmental sustainability
The Resort Group
The Resort Group PLC (TRG) is a world-class luxury Resort hospitality company specialising in creating 5-star holiday Resorts and Hotels. The Group has strategic partnerships with world leading hotel and tour operators, which include TUI Travel, Meliá Hotels International, Steigenberger Hotels and Resorts and Hilton Worldwide. The occupational rate is around 75% all together.
They are the market leader of 5-star Resort developments in Cape Verde, one of the world’s fastest-growing tourism markets, with the largest Resort and Hotel pipeline. Their award-winning beach Resorts at MELIÃ Tortuga and MELIÃ Dunas were recently joined by two new hotels, TUI Sensimar Cabo Verde and MELIÃ Llana Beach Resort & Spa, and the new exclusive Bikini Beach Club. They have a further ten projects in the pipeline for the Islands.
The Group manages the entire development process from identifying prime land to architectural design through to managing the full construction works programme. We have a proven track record of delivering 5-star Resorts on time, on budget and to plan, making us the partner of choice for world-class hotel operators who drive occupancy and profitability at these developments.
We develop, manage and operate the Resorts and provide a number of on-site services including hospitality and entertainment. The Group is dedicated to providing the highest quality Resorts and delivering an unrivalled holiday experience.
Founded in 2007, today the Group employs over 2,000 people.
The Resort Group PLC has five completed projects in Cape Verde situated on prime beachfront land on the Island of Sal.
MELIÃ Tortuga Beach Resort was completed in May 2011 and was the first Cape Verde project by The Resort Group PLC. Since its launch, it has enjoyed unprecedented success in the industry, winning awards year after year and demonstrating consistently high occupancy levels.
MELIÃ Dunas Beach Resort & Spa was the second Cape Verde project and became operational in November 2014. It is a much larger resort with over 1200 rooms and is a tourist destination in its own right. Established in the market, it attracts high levels of occupancy particularly within the All-Inclusive family holiday market.
Sal’s first adult-only hotels, TUI Sensimar Cabo Verde and MELIÃ Llana Beach Resort & Spa, opened in December 2016. Both offer a stunning range of hotel suites, tropical pools and rejuvenating spa facilities. The two hotels have over 600 suites and can welcome 62,400 tourists per year, creating approximately 500 jobs locally.
The Resort Group has a strong and sustainable business model with consistent growth demonstrated during the last 3 years. The Group benefits from multiple revenue streams and growing Hospitality revenue as more of our Projects are completed. We also benefit from the commercial income and supply chain efficiencies delivered by our vertically integrated businesses.
TRG offers its Resort properties on a freehold purchase basis to private investor clients. Purchasers take advantage of excellent capital growth potential, as well as an on-going rental return, once the Resort is operational.
White Sands Hotel & Spa Construction on Boa Vista island
Year-round sunshine, means that Boa Vista – home to the latest development by The Resort Group PLC – is always in its prime, especially during the winter months. Settled upon on one of the Top Beaches in the World according to TripAdvisor, the Resort is making progress in construction.
Comprising of 835 properties including a range of hotels suites and villas, the 5-star development will be ready to support the expected tourism hike following the Governments introduction of new European Visa rules. The move means that “Visa-exempted citizens are obliged to pre-register themselves, using a platform made available online, up to five days before the start of the trip” supporting the archipelagos’ move to accommodate the European market more efficiently, which is home to around 80% of tourists that visit the Islands.
Moreover, with the Cape Verdean Government aiming to attract more than a million tourists a year by 2020, far more than the current hotel supply can cope with, the investor opportunities on the archipelago, strategically located in the Atlantic Ocean around an hour from Dakar and around four hours from Brazil and Lisbon, are promising.
Set to maximize on the opportunity on the beach-paradise island of Boa Vista, White Sands Hotel & Spa continues to take shape upon the sandy shores of Santa Monica Beach, with work currently focused on the finer details of the Resorts Villas and Beach-front Suites. Taking great care, this stage of construction is all about attention to detail and is what makes our developments award winning
The stability factors in the investment
- To build a house, you always start with a good foundation. TRG has done this by signing contracts with Melia – the world´s biggest hotel chain, Tui – The world biggest tour operator and other famous groups as Hilton, Steinenberger, etc. These are long term contracts that will give your investment stability. They will also take care of the maintenance of your property.
- The climate. After many disastrous years in the Caribbean, this is a very important factor. In Cape Verde the climate is stable all year around and it doesn´t have terrible hurricanes that could damage your property.
- The governance of the islands is very stable and has a strong democracy. In 2018 it was ranked in the place 26, just after USA and above many nations in Europe with long democratic traditions.
- The experience and the expansion curve. TRG has operated already many years with success and this means that all further steps has passed the pioneer stage. What is built further on, has been tested over many years and this means that everything is done on solid bases.
- You can also visit the projects before you invest. We went also there to confirm everything and we were really taken by the friendly smiling people, incredible climate (and we live in Malaga), beautiful beaches, great food, etc. If you decide to visit, the cost of the round trip will be refunded if you invest.
- You invest in a hotel property that will, if you want to, be rented with a long term contract to from example Melia.
- Where: The already finished hotels are situated on the island of Sal and the newest project on the island of Boa Vista. This project is called White Sands and it is the first hotel that is built on the banks of the 14 world´s most beautiful beaches (Tripadviser). This is the next site where TRG will build many hotels.
- Why: First of all a good interest rate. Secondly, you have the possibility to use a similar to your property in the same hotel or in the others for 5 weeks (2 weeks in high season and 3 weeks in low)
- How many years: You can keep your investment as long as you like with a minimum of 5% return depending on the return from the overall TRG business on the island. You can always sell it. But if you wait 5 years, you have the possibility to enter it in the TRG stock and enjoy their sales network to resell it for a fee. When you resell your property you will get the revaluation over time.
- Other possibilities are that you buy it for your vacations and buy the maintenance to the group to take care of it.