Buying or investing in a hotel in Morocco? Let me be upfront: it’s not just about the number of
rooms or the sea view. In Morocco’s fast-growing tourism sector, a hotel deal that looks perfect on
paper can hide major operational, legal, or financial risks if you don’t dig deep. That’s where due
diligence comes in.
Over the years, I’ve helped several investors evaluate hotel properties across Marrakech, Agadir,
Tangier, and Essaouira. One thing is always true: the quality of your due diligence determines the
success of your investment.
Here’s the complete checklist we use when conducting due diligence for hotel acquisitions in
Morocco—based on real local challenges, not theory.
Table of Contents
Legal and Ownership Verification in Morocco
Why it matters: Hotels in Morocco are sometimes managed informally, especially in tourist-heavy areas. You need to confirm who really owns what.
What to check:
Valid Titre Foncier (land title deed) showing the hotel is owned by the seller Company’s legal registration in the Registre de Commerce
Articles of Association (Statuts) and shareholder registry
Licenses and permits required to operate a hotel (tourism classification, alcohol license if applicable)
Litigation history: any disputes with guests, neighbors, or suppliers?
Financial Health of the Business in Morocco
Why it matters: The numbers must back up the asking price. Don’t take word-of-mouth profitability at face value.
What to check:
- Financial statements from the last 3–5 years
- Occupancy rates and ADR (Average Daily Rate)
- Tax filings and proof of payment (VAT, IS, CNSS contributions)
- CNSS declarations for all registered employees
- Outstanding loans, supplier debts, or unpaid bills
Tip: In some cases, income may be underreported by certain Moroccan hotels. It’s advisable to compare accounting records with bank deposits and reservation system data to detect any inconsistencies.
Human Resources and Staffing in Morocco
Why it matters: Labor issues in Moroccan hotels are common, especially with seasonal or undocumented staff.
What to check:
- Contracts for all employees—check if they’re legal and current
- Payroll records and CNSS affiliations
- History of labor disputes or inspections
- Staff turnover rate and key personnel dependence (e.g., head chef, front desk manager)
Building Condition and Compliance in Morocco
Why it matters: A beautiful riad can be a money pit if major renovations or compliance issues are lurking.
What to check:
- Building inspection report: plumbing, electricity, roofing, etc.
- Fire safety compliance and evacuation plans
- Environmental impact approvals, if applicable
- Zoning regulations and building code compliance
- Renovation permits and receipts for recent work
Assets and Operational Systems in Morocco
Why it matters: Hotels come with a lot of physical and digital infrastructure. Make sure it’s in good shape.
What to check:
- Furniture, fixtures, and equipment (FF&E) inventory
- Kitchen and laundry equipment—are they owned or leased?
- Booking system (PMS) and whether the license is transferable
- Existing maintenance contracts for elevators, HVAC, and security systems Utilities contracts: water, electricity, internet
Commercial and Branding Aspects in Morocco
Why it matters: A well-established brand or OTA presence can drive revenue, but you need to confirm its strength and transferability.
What to check:
- Presence on OTAS (Booking.com, Expedia, Airbnb) and customer ratings
- Trademark or brand name registration (if applicable)
- Website ownership and access credentials
- Marketing strategy and advertising performance
- Key client contracts: agencies, tour operators, corporate clients
Taxes and Regulatory Compliance in Morocco
Why it matters: Regulatory non-compliance can result in fines or even closure.
What to check:
- Patente (business license) and tourism classification certificate
- Proof of tourist tax (taxe de séjour) compliance
- CNSS and CIMR contributions for staff
Up-to-date tax clearance certificate from the Direction Générale des Impôts Office des Changes documentation if foreign investors are involved
Location-Specific Factors in Morocco
Why it matters: Morocco’s tourism market is highly localised. A profitable hotel in Chefchaouen isn’t run the same way as one in Casablanca.
What to evaluate:
- Seasonality of bookings (winter in the desert vs. summer on the coast)
- Local tourism projects or infrastructure plans (new airport, port expansion, etc.) Competition density and pricing in the area
- Access to local staff and service providers
- Dependence on foreign tour groups or local business clients
Final Thoughts
Buying a hotel in Morocco isn’t just about bricks, beds, and bookings. It’s about understanding the real heartbeat of the business. Moroccan hotels are deeply tied to local dynamics—staff loyalty, supplier relationships, and sometimes even the owner’s personal charisma.
Due diligence should not just verify what’s visible but uncover what’s missing. When done right, it protects your investment, strengthens your negotiating power, and gives you peace of mind.
If you’re planning to buy a hotel in Morocco and want this checklist as a PDF or internal review tool, let me know—I’ll send you a formatted version. If you’re ready, I’m also happy to help you build your own due diligence team locally.
Need Help with Due Diligence?
We’re here to help. Whether you’re buying or selling, our experts can support you through every step of the process.
