Last refreshed Apr 28, 2026
Common question
What is the ROI on a riad guesthouse in Marrakech?
Direct answer
A well-located 6–10 room riad guesthouse in Marrakech typically yields a gross room revenue of 1.2M–2.4M MAD per year at 55–70% occupancy. Net operating margin after staff, OTAs and utilities usually settles between 25–40%, putting cash-on-cash returns in the 6–11% range against a 4M–7M MAD all-in entry. Pay-back periods of 9–14 years are common for stabilised properties with established review history.
At a glance
- Gross room revenue
- 1.2M–2.4M MAD / yr
- Typical occupancy
- 55–70%
- Net operating margin
- 25–40%
- Cash-on-cash yield
- 6–11%
- Typical payback
- 9–14 years
Frequently asked questions
How many rooms do you need to be profitable?+
Most operators target 6 rentable rooms or more. Below 5 rooms the fixed staff and platform costs eat too much of revenue to clear a healthy net margin.
What is the biggest cost line for a riad guesthouse?+
Staff (manager, housekeeping, breakfast cook) is consistently the largest operating line, followed by OTA commissions (15–20% on Booking.com) and utility/maintenance for older medina infrastructure.
Are guesthouse licenses easy to obtain?+
The maison d'hôte classification has a defined inspection checklist (room sizes, fire safety, accessibility). Most legitimate riad guesthouses can pass it; shortcut Airbnb-only operations face increasing enforcement risk.
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Based on 277 tracked riad listings across Marrakech Medina (2024–2026).