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CARIBBEAN BUSINESS
12/20/2007
CPG completes transaction to acquire Dorado Beach and Cerromar hotels
New owners evaluating possible operators; retrofitting and rebuilding
of properties could begin first quarter of 2009
By JOSE L. CARMONA
The transaction to acquire landmark hotels Dorado Beach and Cerromar
in Dorado through a joint venture by Caribbean Property Group (CPG)
and local developer Federico Stubbe was completed Dec. 7, Stubbe
confirmed to CARIBBEAN BUSINESS.
Stubbe said the transaction with the Pritzker family, owners of the
Hyatt hotel chain to which both hotels belonged, was made through a
private equity fund for an undisclosed amount and involved the Dorado
Beach, Cerromar, four golf courses, adjacent properties and
residential developments.
Tentative plans call for converting the Dorado Beach into a five-star
hotel and the Cerromar into a four-star hotel plus residential and
commercial developments. Total planned investment in both properties
surpasses the $1.5 billion mark, noted Stubbe.
"Right now, we are evaluating who will be operating those two hotels,
the Dorado Beach and Cerromar. We will also begin evaluating the
architectural part, and the main issue here will be whether it's more
feasible to remodel Cerromar, how to do the rebuilding and the extent
of the demolition if it comes to that. There are several main issues
here to consider," commented Stubbe.
The local developer said the structural and design codes have changed
since the structures were originally built back in the '60s and
therefore they cannot rebuild using the same old building codes.
Secondly, luxury facilities nowadays are much more demanding and
require amenities and facilities not currently available at both
properties.
"All this is under evaluation. We expect to have some decisions made
by January in order for us to proceed," added Stubbe. "We first have
to go through a design and permitting process, which will probably
take us all of 2008, and we will hopefully begin construction full
blast by the first few months of 2009. We hope to have all the
planning structured by the first quarter of next year."
Best-case scenario has both hotels opening sometime in 2010.
Stubbe said that in order for Puerto Rico to compete in the global
market, it needs large-scale projects of the kind not currently
available on the island.
"To be a world's best destination you have to go large scale, and
that's why we're being so cautious in the way we disclose information
about this project," added Stubbe.
The 206-room Dorado Beach closed in 2006, laying off some 700
employees, while the 506-room Cerromar closed in 2003. At the time,
the hotel had 500 employees.
CPG is already the owner of the Ritz-Carlton Hotel & Casino,
Ambassador & Casino and the Normandie, as well as other real estate
and shopping centers.
12/20/2007
CPG completes transaction to acquire Dorado Beach and Cerromar hotels
New owners evaluating possible operators; retrofitting and rebuilding
of properties could begin first quarter of 2009
By JOSE L. CARMONA
The transaction to acquire landmark hotels Dorado Beach and Cerromar
in Dorado through a joint venture by Caribbean Property Group (CPG)
and local developer Federico Stubbe was completed Dec. 7, Stubbe
confirmed to CARIBBEAN BUSINESS.
Stubbe said the transaction with the Pritzker family, owners of the
Hyatt hotel chain to which both hotels belonged, was made through a
private equity fund for an undisclosed amount and involved the Dorado
Beach, Cerromar, four golf courses, adjacent properties and
residential developments.
Tentative plans call for converting the Dorado Beach into a five-star
hotel and the Cerromar into a four-star hotel plus residential and
commercial developments. Total planned investment in both properties
surpasses the $1.5 billion mark, noted Stubbe.
"Right now, we are evaluating who will be operating those two hotels,
the Dorado Beach and Cerromar. We will also begin evaluating the
architectural part, and the main issue here will be whether it's more
feasible to remodel Cerromar, how to do the rebuilding and the extent
of the demolition if it comes to that. There are several main issues
here to consider," commented Stubbe.
The local developer said the structural and design codes have changed
since the structures were originally built back in the '60s and
therefore they cannot rebuild using the same old building codes.
Secondly, luxury facilities nowadays are much more demanding and
require amenities and facilities not currently available at both
properties.
"All this is under evaluation. We expect to have some decisions made
by January in order for us to proceed," added Stubbe. "We first have
to go through a design and permitting process, which will probably
take us all of 2008, and we will hopefully begin construction full
blast by the first few months of 2009. We hope to have all the
planning structured by the first quarter of next year."
Best-case scenario has both hotels opening sometime in 2010.
Stubbe said that in order for Puerto Rico to compete in the global
market, it needs large-scale projects of the kind not currently
available on the island.
"To be a world's best destination you have to go large scale, and
that's why we're being so cautious in the way we disclose information
about this project," added Stubbe.
The 206-room Dorado Beach closed in 2006, laying off some 700
employees, while the 506-room Cerromar closed in 2003. At the time,
the hotel had 500 employees.
CPG is already the owner of the Ritz-Carlton Hotel & Casino,
Ambassador & Casino and the Normandie, as well as other real estate
and shopping centers.
It was so lovely. DH and I were there on our honeymoon and always intended to go back.
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