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Beautiful Hostel In Tropical Paradise Surf Town For Sale

Itacare, Bahia
Asking Price:
$295,000 (USD) Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
Under $100K (USD)
Cash Flow:
Under $50K (USD)

We are looking to rent out our beautiful hostel in the main street of this amazing surf town called Itacare, in Bahia, Brazil. The annual rent is: R$65,000, (currently equivalent to: 16,000GBP, 20,000USD, 17,500EURO).

The hostel's key features:
Successful hostel & bar
9 Rooms (4 doubles, 5 dorms) all en-suite
Breakfast area
Communal shower & toilet
Hammock area
Big tropical garden (the only hostel in town with this) - including several fruit trees (cacao, banana, graviola, acerola), also palms including coconut and dende as well as coffee, neem and cinnamon trees.
BBQ & Pizza oven
Roofed social area
Games area
Camping space
Camping kitchen, shower and toilet

The hostel has been open for 6.5 years and is well known amongst the backpacker trail in Brazil and South America. In our 2nd year of running we achieved no.1 in Brazil on hostelworld for 6 months.

We have a great reputation as a hostel and have also hosted several music events, including a weekly evening which attracts musicians from inside and outside town and recently hosted a private party for some of Brazilians famous movie stars (including Deborah Secco).

The town is stunning! It has 12 local beaches (including one of the top 10 beaches in Brazil), a famous surf beach which holds international competitions, waterfalls, a beautiful river with mangroves, and has one of the last pieces of Atlantic rainforest meeting the sea in this entire region.
For activities and lifestyle there are; surf schools and all year waves, a skate bowl, almost daily capoeira (3 groups), forro nights and lessons (local dance), reggae, yoga, daily fresh fish and vegetables and lots and lots of sunshine!

In terms of wildlife, there is a huge selection of butterflies, birds and insects which can be seen in the trails on the way to some of the beaches, but also there are humpback whales during whale season (sept-nov) and we also 5 of the 7 species of sea turtles nesting from December to March (Loggerhead, Olive Ridley, Green, Leatherback, and Hawksbill) - there are local projects to help protect them and we have helped turtles hatch several times.

Temperatures here generally don't exceed 35 degrees in the summer months and don't drop below 23 degrees in the day and 13 degrees in night during the 'winter' months, or raining season as it is (Jun-Aug). Not only is the outside temperature perfect, but so is the sea temperature which averages 25 degrees alround.

The town has a high season, which is from Dec-Mar and low season is Apr-Jun. The rest of the time is a kind of mid-season.

In recent years the town has become more and more well-known and for the last 3 years films and series have been filmed here (including a Brazilian Disney series).

The main street (Pituba), where the hostel is, is currently undergoing renovation which should be finished in the next few months. This will make the main street even more attractive, reducing the traffic flow and increasing the pedestrian area.

More details available upon request, please contact seller below for more information.

Property information

Real Estate:

Real Property Included

Living Accommodation:

There is a large, en-suite double room with kitchen facilities within the hostel.


The hostel is perfectly situated in the middle of the main road, which is 10 mins from the bus station, 10 mins from the nearest local beaches, 7 mins from the bank and right next to the restaurants and bars.
Although it's on the main street, it doesn't really suffer with street noise, as the property is deep set.

Premises Details:

The hostel grounds are around 950m2. This includes a garden of over700m2

Business Operation

Expansion Potential:

There is a lot of expansion potential. So far, the property is only on one level. A second floor could be added, without taking away any beauty from the grounds. There is also the area at the back of the garden that could easily have rooms, or even apartments built. They could easily be on 2 floors, again without interfering visually with the property.

Competition / Market:

When we moved to town we were one of only 5 hostels. Now there are more like 15, however, we are the only hostel with a huge tropical garden in the middle of the main street. We have an ideal location, great reputation and beautiful grounds.

Reasons for selling:

Why rent/sell?
Well, we're actually ideally looking to rent out the business for at least 3 years, but would consider selling for the right offer.
We have been doing this for a long time and are not feeling as spritely as we did. Not only that, but we have become very interested in other projects and simply don't have time and energy to run the hostel and be as involved in the other projects as we'd like. We feel that the hostel deserves full, undivided attention to be the best it can be and has even more potential in the right hands.
Included in the rent & or sale would be the hostel name, contacts, facebook page, email, booking engines & training on the existing systems etc. It would be the whole package!
Please contact us for more information.

Trading hours:

07:30-01:30 7 days per week.

1 full time, 1 part time and 4 volunteers
Years established:
6.5 years

Other Information

Support & training:

We will give training on how to use the systems in place (both online and physicall), structure and maintenance, the town (including local contacts, agencies, stockists) etc. We are happy to give full training and will be available for ongoing support if required (if buying, then at least for the first 1-2months).

Furniture / Fixtures value:
$15,000 (USD) - included in the asking price
Inventory / Stock value:
$2,000 (USD) - included in the asking price
This business can be relocated.

Contact Seller

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