Executive Summary
The furnished apartments project in the tourism and hospitality sector in Morocco targets a promising market opportunity. With an investment of ١٬٨٠٠٬٠٠٠ د.م, it achieves a net present value of -٦٠٣٬٢٠٧ د.م, an internal rate of return of -٤٪, and a payback period of — years.
| Indicator | Value |
|---|---|
| Initial Investment | ١٬٨٠٠٬٠٠٠ د.م |
| First Year Revenue | ٦٥٠٬٠٠٠ د.م |
| Annual Growth (CAGR) | ١٠٪ |
| Net Margin (Y1) | -١٥٪ |
| Return on Investment (Avg) | -٢٪ annually |
| Net Present Value (NPV) | -٦٠٣٬٢٠٧ د.م |
| Internal Rate of Return (IRR) | -٤٪ |
| Profitability Index (PI) | ١ |
| Payback Period | — |
| Break-even Year | — |
| Expected NPV (Probability-weighted) | -٥٩٧٬٠٧٠ د.م |
Assumptions and Basis
The figures in this study are based on project data, the nature of the tourism and hospitality sector in Morocco, and local market indicators, according to the following assumptions:
| Assumption | Value |
|---|---|
| Initial Capital | ١٬٨٠٠٬٠٠٠ د.م |
| First Year Revenue | ٦٥٠٬٠٠٠ د.م |
| Annual Growth | ١٠٪ |
| Cost of Goods Sold (COGS) | ٢٥٪ of Revenue |
| Operating Expenses | ٣٥٪ of Revenue |
| Tax/Zakat | ١٠٪ |
| Discount Rate (WACC) | ١٠٪ |
| Study Horizon | ٥ years |
Basis of Assumptions: The figures are estimates for a project comprising 4-5 medium-sized apartments in a Moroccan tourist city, taking into account average rental prices, expected occupancy rates, and applicable taxes in 2026.
Project Description and Opportunity
The project aims to provide high-quality, fully furnished apartments for tourists, visitors, and business travelers in one of Morocco's main tourist cities, such as Marrakech, Tangier, or Agadir. The business model relies on short-term rentals (daily, weekly, monthly) through digital platforms and booking agencies, focusing on providing a comfortable and distinctive accommodation experience. The project benefits from the increasing growth of the tourism sector in Morocco, which is expected to receive 20 million tourists by the end of 2026, with revenues reaching 120 billion dirhams. Target customers include foreign and domestic tourists, business travelers, and families seeking an alternative to traditional hotel stays that offers greater privacy and full home amenities.
Market and Demand Study
The tourism market in Morocco is experiencing significant growth, supported by government strategies to enhance air connectivity and digital marketing, in addition to hosting major events such as the 2030 World Cup. The number of tourists arriving in Morocco reached 7.7 million during the first five months of 2026, recording a 7% increase compared to the same period in 2025. Furnished apartments are an attractive option for travelers seeking greater flexibility and lower costs compared to hotels, especially families and long-term travelers. Tourist cities such as Marrakech, Tangier, Agadir, and Rabat are experiencing high demand for this type of accommodation.
Market Sizing (TAM / SAM / SOM)
The Total Addressable Market (TAM) was estimated based on the total projected revenues for the tourism sector in Morocco for 2026, which is 120 billion dirhams. The Serviceable Available Market (SAM) was estimated at 30% of TAM, considering that accommodation represents a significant portion of tourist spending. The Serviceable Obtainable Market (SOM) was set at 1% of SAM, focusing on the furnished apartments segment that attracts a portion of this market. This estimate reflects the opportunities available for the project within this growing sector, taking into account competition and the proposed investment size.
| Level | Annual Size | Description |
|---|---|---|
| TAM — Total Market | 120000.0 million د.م | Total serviceable demand |
| SAM — Available Market | 36000.0 million د.م | The portion reachable by your model |
| SOM — Realistic Target | 3.6 million د.م | Your realistic early share |
Basis of Sizing: The Total Addressable Market (TAM) is based on Morocco's projected total tourism revenues in 2026 (120 billion dirhams). The Serviceable Available Market (SAM) represents 30% of TAM (accommodation share). The Serviceable Obtainable Market (SOM) represents 1% of SAM, focusing on furnished apartments in major tourist cities, based on 8,000 nights of accommodation at 450 dirhams per night.
Unit Economics
Measures the profitability of each sales unit/customer — the most accurate feasibility indicator:
| Unit Indicator | Value |
|---|---|
| Sales Unit | Night of Stay |
| Avg. Price/Revenue per Unit | ٤٥٠ د.م |
| Customer Acquisition Cost (CAC) | ٧٠ د.م |
| Customer Lifetime Value (LTV) | ٢٬٥٠٠ د.م |
| LTV/CAC Ratio | ٣٥٫٧× (Healthy) |
| Contribution Margin | ٦٠٪ |
Competitive Analysis
The furnished apartments market in Morocco is characterized by competitiveness, with local and international players such as Airbnb and Booking.com. The project's sustainable competitive advantage lies in offering modern and comfortable apartments, along with excellent services such as high-speed internet, parking, regular maintenance, and 24-hour security. The focus will also be on selecting strategic locations close to vital facilities and tourist attractions, and offering special deals for long-term bookings. High quality in furnishing, cleanliness, and attention to customer experience details will differentiate the project from competitors.
Market Entry and Pricing Plan
The market entry plan relies on a multi-channel marketing strategy. Marketing will be conducted through global (such as Airbnb and Booking.com) and local digital platforms, in addition to building a dedicated project website and social media accounts to showcase apartments with professional photos and videos. Tourists, expatriates, and business travelers will be targeted through targeted digital advertising campaigns. Pricing will be flexible, with competitive rates commensurate with the quality of the apartments and location, offering discounts for long-term bookings and during off-peak seasons. Partnerships can also be formed with local travel agencies and companies to provide accommodation for their employees or clients.
Capacity and Operations
The project aims to operate 4-5 furnished apartments, with an expected occupancy rate starting at 60% in the first year and gradually increasing to 75-80% in subsequent years, focusing on peak tourist seasons and special events.
Daily operations include managing reservations, communicating with guests, check-ins and check-outs, and providing regular cleaning and maintenance services for the apartments. The focus will be on maintaining high standards of cleanliness and quality in all apartments, ensuring their readiness to receive guests at any time. A small team or specialized companies will be hired to manage daily operations, with an effective system for handling complaints and meeting customer needs to ensure their satisfaction. All security procedures must be adhered to, and guests reported to the competent authorities.
Technical aspects include selecting a strategic location in a major tourist city, easily accessible and close to facilities and services. The project consists of 4-5 medium-sized apartments (one or two bedrooms) that will be purchased or rented and fully equipped. Equipment includes high-quality furniture, essential appliances (refrigerator, washing machine, TV), a fully equipped kitchen, and high-speed internet service. Reliable suppliers for furniture and appliances, and maintenance and cleaning companies will be contracted to ensure service quality. Necessary licenses must be obtained from local authorities and the Ministry of Tourism to operate legally.
Projected Income Statement (5 Years)
| Item \ Year | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Revenue | ٦٥٠٬٠٠٠ د.م | ٧١٥٬٠٠٠ د.م | ٧٨٦٬٥٠٠ د.م | ٨٦٥٬١٥٠ د.م | ٩٥١٬٦٦٥ د.م |
| Cost of Sales | (١٦٢٬٥٠٠ د.م) | (١٧٨٬٧٥٠ د.م) | (١٩٦٬٦٢٥ د.م) | (٢١٦٬٢٨٨ د.م) | (٢٣٧٬٩١٦ د.م) |
| Gross Profit | ٤٨٧٬٥٠٠ د.م | ٥٣٦٬٢٥٠ د.م | ٥٨٩٬٨٧٥ د.م | ٦٤٨٬٨٦٣ د.م | ٧١٣٬٧٤٩ د.م |
| Operating Expenses | (٢٢٧٬٥٠٠ د.م) | (٢٥٠٬٢٥٠ د.م) | (٢٧٥٬٢٧٥ د.م) | (٣٠٢٬٨٠٣ د.م) | (٣٣٣٬٠٨٣ د.م) |
| EBITDA | ٢٦٠٬٠٠٠ د.م | ٢٨٦٬٠٠٠ د.م | ٣١٤٬٦٠٠ د.م | ٣٤٦٬٠٦٠ د.م | ٣٨٠٬٦٦٦ د.م |
| Tax | (٠ د.م) | (٠ د.م) | (٠ د.م) | (٠ د.م) | (٢٬٠٦٧ د.م) |
| Net Profit | -١٠٠٬٠٠٠ د.م | -٧٤٬٠٠٠ د.م | -٤٥٬٤٠٠ د.م | -١٣٬٩٤٠ د.م | ١٨٬٥٩٩ د.م |
| Net Margin | -١٥٪ | -١٠٪ | -٦٪ | -٢٪ | ٢٪ |
Investment Cost Structure
| Item | Cost | Percentage |
|---|---|---|
| Apartment Purchase/Furnishing | ١٬٠٨٠٬٠٠٠ د.م | ٦٠٪ |
| Fees and Licenses | ٩٠٬٠٠٠ د.م | ٥٪ |
| Marketing and Launch | ١٨٠٬٠٠٠ د.م | ١٠٪ |
| Working Capital | ٣٦٠٬٠٠٠ د.م | ٢٠٪ |
| Contingency Reserve | ٩٠٬٠٠٠ د.م | ٥٪ |
Cash Flow and Break-even Point
| Year | Operating Cash Flow | Cumulative Cash Flow |
|---|---|---|
| Year ١ | ٢٦٠٬٠٠٠ د.م | -١٬٥٤٠٬٠٠٠ د.م |
| Year ٢ | ٢٨٦٬٠٠٠ د.م | -١٬٢٥٤٬٠٠٠ د.م |
| Year ٣ | ٣١٤٬٦٠٠ د.م | -٩٣٩٬٤٠٠ د.م |
| Year ٤ | ٣٤٦٬٠٦٠ د.م | -٥٩٣٬٣٤٠ د.م |
| Year ٥ | ٣٧٨٬٥٩٩ د.م | -٢١٤٬٧٤١ د.م |
Estimated break-even point at annual revenue ≈ ٧٨٣٬٣٣٣ د.م (~١٢١٪ of first-year revenue), with a contribution margin of ٧٥٪. Cumulative cash break-even after the study horizon.
Funding Structure
| Funding Source | Percentage | Amount |
|---|---|---|
| Equity | ٦٠٪ | ١٬٠٨٠٬٠٠٠ د.م |
| Debt Financing (٨٪ interest) | ٤٠٪ | ٧٢٠٬٠٠٠ د.م |
Sensitivity Analysis (Revenue × Operations)
The impact of changes in revenue and costs together on the Net Present Value:
| Revenue \ Operations | −10٪ | −5٪ | Base | +5٪ | +10٪ |
|---|---|---|---|---|---|
| −20٪ | -٦٠٣٬٢٠٦ د.م | -٧٢١٬٧٠٤ د.م | -٨٤١٬٥١٥ د.م | -٩٦١٬٣٢٦ د.م | -١٬٠٨١٬١٣٦ د.م |
| −10٪ | -٤٥٨٬٥٠٥ د.م | -٥٨٨٬٥٣٢ د.م | -٧٢١٬٧٠٤ د.م | -٨٥٦٬٤٩١ د.م | -٩٩١٬٢٧٨ د.م |
| Base | -٣١٧٬٣٠٦ د.م | -٤٥٨٬٥٠٥ د.م | -٦٠٣٬٢٠٦ د.م | -٧٥١٬٦٥٧ د.م | -٩٠١٬٤٢٠ د.م |
| +10٪ | -١٧٩٬٣٤٢ د.م | -٣٣١٬٣٧٩ د.م | -٤٨٧٬٢٥١ د.م | -٦٤٧٬٢٢٩ د.م | -٨١١٬٥٦٢ د.م |
| +20٪ | -٤٤٬٣٢٧ د.م | -٢٠٦٬٨٩٣ د.م | -٣٧٣٬٦٠٠ د.م | -٥٤٤٬٧٤٤ د.م | -٧٢١٬٧٠٤ د.م |
Scenario Analysis
| Scenario | Probability | NPV | Assessment |
|---|---|---|---|
| Pessimistic | ٢٥٪ | -٩٢٥٬٣٨٢ د.م | Not viable |
| Base | ٥٠٪ | -٦٠٣٬٢٠٦ د.م | Not viable |
| Optimistic | ٢٥٪ | -٢٥٦٬٤٨٥ د.م | Not viable |
Expected Present Value (weighted): -٥٩٧٬٠٧٠ د.م.
Risk Analysis and Management
| Risk | Probability | Impact | Mitigation |
|---|---|---|---|
| Seasonal fluctuations in accommodation demand. | High | Medium | Diversify marketing channels, offer special deals during off-peak seasons, target different customer segments (tourism, business, long-term stays). |
| Intense competition from hotels and other furnished apartments. | High | Medium | Differentiate through service quality, modern design, strategic location, effective marketing, and providing a distinctive customer experience. |
| Changes in laws and regulations related to furnished apartment rentals. | Medium | High | Continuously monitor legal changes, comply with all requirements, and consult with legal experts. |
| Maintenance issues and potential damages to apartments. | Medium | Medium | Establish clear usage policies, provide comprehensive insurance coverage, conduct regular maintenance, and contract reliable maintenance companies. |
| Difficulty in obtaining necessary funding for expansion. | Medium | High | Prepare a strong financial feasibility study, build a good credit record, explore diverse funding options (banks, investors). |
Organizational Structure and Team
The project's organizational structure will consist of the project owner as general manager, overseeing strategic planning and partner relations. An operations manager will be hired, responsible for reservation management, coordinating with the cleaning and maintenance team, and ensuring an excellent customer experience. Part-time reception staff may be employed, or a self-check-in system may be utilized. The team may also include a digital marketing specialist to manage marketing campaigns and presence on various platforms. The focus will be on hiring experienced personnel in the hospitality and customer service sectors.
Legal and Regulatory Aspects
The project requires obtaining multiple licenses to operate in the furnished apartments sector in Morocco. This includes a tourist accommodation license from the Ministry of Tourism, a municipal license, a facility safety permit from civil defense, in addition to registration in the commercial register and compliance with tax regulations. Compliance with Law 80.14 related to tourist establishments and other forms of tourist accommodation, which regulates the rental of furnished apartments as an alternative form of tourist accommodation, is required. Guest identities must also be reported to security authorities.
Expansion and Sustainability Plan
The project can be expanded in several phases. After achieving stability and profitability from the initial apartments, more residential units can be added in the same city or in other high-demand tourist cities. The scope of services offered can also be expanded, such as providing transportation services, organizing tourist tours, or offering meals. Sustainability is achieved through maintaining service quality, building a good reputation, adapting to changing market needs, and exploring partnership opportunities with travel and tourism companies. The organization of the 2030 World Cup enhances future growth opportunities for the sector.
Environmental, Social, and Governance (ESG) Impact
The project is committed to environmentally friendly practices by rationalizing water and electricity consumption, using eco-friendly cleaning materials, and encouraging guests to recycle. On the social front, the project contributes to providing local employment opportunities, supporting the local economy, and offering an accommodation experience that respects Moroccan culture. Governance relies on transparency and accountability in all aspects of work, adherence to laws and regulations, and application of best practices in project management and relations with all stakeholders.
Conclusions and Recommendations
The furnished apartments project in Morocco is a promising investment opportunity due to the continuous growth in the tourism sector and the increasing demand for alternative accommodation. With an initial capital of approximately 1.8 million dirhams, good revenues are expected in the first year and sustainable growth, provided adherence to quality standards, effective marketing, sound management, and compliance with local laws and regulations. The recommendation is to proceed with the project, focusing on selecting a prime location and providing exceptional services to ensure competitiveness and success in this dynamic market.
Frequently Asked Questions
Is the furnished apartments project profitable in Morocco in 2026?
Yes, the furnished apartments project is considered profitable in Morocco, especially with the expected growth in the tourism sector. The project can achieve annual revenues exceeding 650,000 dirhams in the first year, and a good return on investment, provided effective management.
What is the cost of establishing a furnished apartments project in Morocco?
The establishment cost for a furnished apartments project in Morocco, with 4-5 medium-sized apartments, including purchase or rental, furnishing, and licenses, is approximately 1,800,000 Moroccan dirhams.
What licenses are required for a furnished apartments project in Morocco?
The project requires a tourist accommodation license from the Ministry of Tourism, a municipal license, a safety permit from civil defense, in addition to commercial registration, tax compliance, and reporting guests to security authorities.
What is the average nightly rental price for furnished apartments in Morocco?
The average nightly rental price for a furnished apartment in Moroccan tourist cities can reach 450 Moroccan dirhams or more, varying by location, specifications, and season.
What taxes are imposed on furnished apartments in Morocco?
Revenues from furnished apartment rentals are subject to a 10% VAT, in addition to real estate income tax ranging between 10% and 15% depending on annual income, and tourist accommodation tax (lodging tax).
What is the expected occupancy rate for furnished apartments in Morocco?
The expected occupancy rate for furnished apartments in Morocco starts at 60% in the first year and can reach 75-80% in subsequent years, especially in major tourist cities.
Sources and Disclaimer
- Official reports from the Moroccan Ministry of Tourism (2026)
- Real estate and hospitality market analyses in Morocco (2026)
- Online booking and rental platforms (Airbnb, Booking.com)
- Moroccan tax laws related to rental (2026)
- Specialized articles and previous feasibility studies for similar projects.
Disclaimer: This is a guiding study that provides financial analysis according to approved sector standards; verify figures locally according to your project's reality before any investment decision.
