Originally constructed in 1955 atop the fort built by the Dutch in 1645. The fort is a national monument. The hotel currently leases the land, that lease has 130 years remaining.
The hotel consists of 250 rooms, half of them are in the original three story structure and the other 125 rooms are in the tower that was constructed in 1975. The hotel also has restaurant facilities, swimming pool, gift shop and massive lobby with live coy pond running through it.
At the end of the lobby is the entrance to the Casino which has numerous slot machines, Black Jack tables, Roulette tables, a Crap Table and at the end of the Casino is the sports book and Pirates Bar. Inside the bar are port holes into the swimming pool.
Along with this are 60 retail facilities (known as "The Arches" which are part of the fort structure) for tenants that would market their products and services. These Arches rent for $1,000 per month each. Current tenants include oceanfront restaurants, a dive shop and clothing retailers.
Once we have closed on the purchase of this hotel, in bringing an international flag we will renovate all existing facilities to that hotelier's standards. Enclosed please find the acquisition and renovation budget. We will do this in three phases.
In seeking a way to secure our costs prior to close we have asked the Seller (and he has agreed) to post the stock of the Casino as collateral for up to $500,000 in pre-closing soft cost expenditures.
Our anticipated expense budget is:
Administrative $ 60,000
Travel $ 30,000
Entertainment $ 20,000
Outside services $ 50,000
Miscellaneous $ 40,000
We have this facility under contract to purchase for $21 million. We have renovations planned for an additional $12 million. The Government is granting us the right to build two cruise ship docks on the Caribbean side of the property. We also have entitlements to add a second tower.
Our plan is to renovate the existing facility, add the cruise docks and timeshare the 250 rooms in the hotel. Provided that sells as planned we will build a second tower with an additional 250 hotel rooms for the timeshare model.
Our discussions to date have led us to assume that we will wish to contract with Hard Rock for the Hotel and Casino Flag and with Starwood for the timeshare component. We are also talking with NCL, Carnival and Resorts World for the Cruise ship components of this transaction.
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