Important Update For The Residences
After months and months of somewhat vague newsletters the time has come to announce the next real phase, or maybe the next chapter of the Residences and One Eleven. As most of you know, we have been involved in long, arduous negotiations with our original construction lender, Banorte. With the collapse of the money markets on both sides of the border, it had become almost impossible to find investors or financing for the final completion of our two projects. As we searched for a solution to our problem, the financial situation in the U.S. deteriorated even further and fear began to set in with a number of you in regards to our ability to complete and even with the security of your original deposit. Fortunately for us (and ultimately, you) we had developed such a strong relationship with our lender, that through all of this we were never really forced to stop construction, lay our people off and close our doors. Even in these very difficult times, we have been able to constantly move forward in construction (as slow as it may be) and maintain a staff, ready and willing to assist all present and future clients. Because of our commitment to our owners, our lender and to the entire region, we continuously sought for a solution to this economic meltdown that affected all of us and in the end, we found a way to keep all of our investors and all of our reservation holders from getting hurt financially. This is the good news of this month's newsletter.
We are proud to tell you that a true solution has been found. Last week the documents needed to bring in enough money for completion and delivery were signed at the Notary's office in Tijuana. An agreement between Banorte, their Real Estate holding arm, SOLIDA and the Residences was made and finalized, this is the vehicle which the new money towards completion will be allowed to flow through. In essence, we now have two new partners, Banorte (our construction lender) and SOLIDA (a holding arm of Banorte), with their financial strength and expertise, we have found the very best solution to this situation and a way to deliver to you exactly what you purchased. The three companies formed a trust through which all funds of the new loan will flow through, this protects your original deposits and insures completion of the project as it was offered. It is fortunate indeed, that even in these uncertain financial times, we were able to negotiate a package that takes the project to completion and we will still be here to protect your interests.
Also this week, we contracted with Ernst & Young to begin to gather information on an updated market study to develop new strategies for the profitability of the entire project, particularly TheHotel and the Vacation Rental Program for the rental of the individual condominiums. Now, more than ever, we are well aware of the fact that many of our owners are looking to rental of their condominiums to help supplement ownership costs. As concerns of the status of tourism and relocation into Baja have mounted, new information was deemed very important at this time to protect everyone's investment so far. As this study progresses, the information will be made available to our reservation holders and new prospective buyers.
After careful consideration, there seem to be three main questions most of you will have initially: 1) When will construction begin again? 2) Will there be changes to initial quality? 3) When will delivery of the condominiums begin? I will try to answer these three questions as directly as possible.
Also, our sales team has joined AMPI, the Baja Realtor association. We hope to begin to play a larger role in our community, as we can learn from the trials each of us has had to go through in these troubling times. This will give us more presence in the area as things begin to slowly come back.
First, about resuming construction... Giving hard dates on any of this will be difficult, but understanding the process may help. As of last week, a trust was formed which will accept the new construction funds and release those same funds to the various contractors, this is not the instrument that brings the money to the project. The documents on the construction funding will be drawn next, what we have been told is that this could be four to six weeks more. Once that final step is taken, the funds will begin to flow to the project within two to three weeks. In short, construction should begin in approximately two months.
Second, changes to initial quality... Incredibly, these two new partners fully understand the importance of the perceived quality that we presented to our future condo owners and they have agreed to carry that concept through to the very end. Therefore, we can emphatically say, that your finished condo will be of the same, if not higher quality than what was originally presented.
Third, delivery date... As you might suspect, this is difficult to put a hard date on also, similar to the question on resuming construction. What we know for sure is that once the new money begins to flow into the project, it will be administered over a nine month period, which means that it will all be spent on the construction of the project within a nine month time frame. If it takes three months to actually start and nine months for construction, delivery could begin within one year. This is as close as we can estimate at this time.
Another point that some of you may be curious about is in regards to the future of THEHOTEL. After months of supplying facts and figures to Banorte, and months of explaining our concepts and plans for the relationship of THEHOTEL and the condo owners, we were able to show the importance of the high-end amenities that THEHOTEL will make available. After a lengthy Ernst & Young market study, the services that will be made available to the condos owners by THEHOTEL became an important part of the completion of the project. Rick and Jack's original concepts for THEHOTEL will stand; they will be here to offer to you everything you thought you had purchased. Everything from the rental program of the condominiums, to the quality of the restaurants, the convention area, the spa and the outside amenities are all intact. For the end user, this financial restructuring of the project will not be apparent, it will all appear seamless.
Most of you will be relieved that a solution has been found, and others may be nearing the end of their patience. Regardless of anyone's opinion, we have been and are still committed to giving 100% of ourselves to finding any workable solution to keep our original reservation holders from being hurt financially. This new partnership with Banorte is an incredible opportunity for us to deliver to you the condominium you reserved before. Yes, we are late, but the fact is, if everyone can be just a bit more patient, completion and delivery is closer than ever.
We invite you to visit us at our offices in Mexico, see for yourself how much progress has been made on the building in this past year. Come fall in love with Baja again. Before construction begins at full pace, we would like to see all of you on the jobsite to see what you have missed. If for some reason, you cannot make it to Mexico, please call, Jack, Rick or I will do our best to answer all of your questions and concerns. All of us are so very excited to finally be in a position to bring this news to you, after months of hinting of what was to come, we finally made it!
Michael Coskey
Please Visit: www.THEHOTELBAJA.com
Sales Office Hours: Monday through Saturday 9:00am until 4:30pm. Closed Sundays.
Check: CDDGNEWS.COM
THEHOTEL at Playa Blanca, A smarter guest experience
Boutique Hotels Vs. Chains
By Alberto Garcia Bravo
Typically, you will find Boutique Hotels furnished in a themed, stylish and aspirational way, and are considerably smaller than mainstream hotels; Boutique hotels are always individual and are therefore extremely unlikely to be found amongst the usually boring homogeneity of large chain hotel groups.
Despite this definition, the popularity of the boutique term and concept has led to some confusion about the term. Boutique hotels have typically been unique properties operated by companies with one property or a very small collection. However, their successes have prompted established multi-national hotel companies to improperly use the term when offering only a stylish design and lacking the basic of a personalized service. There is also some overlap between the concept of a boutique hotel and a bed and breakfast.
We can say that the U.S. remains the center of the Boutique Hotel phenomenon, but Mexico has entered into the game recently with a small number of boutique hotels, mostly found along the beachfront of Cabo, Cancun, and a few other "high profile" tourist and corporate destinations in Mexico. THEHOTEL at Playa Blanca will be the first and only true Boutique Hotel in Northern Baja that will definitely offer a different choice for today's travelers from both nations and with different travel purposes.
Some people believe only hotels like Marriot* or The Holiday Inn* define a hotel experience. But we want to do business differently. This doesn't mean you should suffer any less luxuries or comforts. On the contrary, you will find the exact opposite. At THEHOTEL at Playa Blanca you will find the quality and experience that chain hotels cannot match. Really, they can't. Our Business model and practices will enable the staff to offer a higher level of customer service to guests.
Remember this saying? You pay for what you get. Well, you can be certain that all of the condo and THEHOTEL guests will receive a unique experience and it's not just having Wireless Internet access, on-demand cable television, and instant access to movies or music, these are some of the standard expectations of today's hotel guest. To really meet expectations and deliver a superior service, we are creating a smarter guest experience that incorporates these technologies into the hotel rooms offering more than high quality, the same at-home multimedia experience to which our guest will be accustomed and adding the idea of empowering guests with a personalized experience. In-room systems, enhanced amenities, and almost instant information resources can and will deliver a new kind of experience a vision that maps perfectly to our efforts.
For most travelers, the decision process on a hotel is made one part budget and one part amenities. Those travelers wishing to be on a budget but also experience the best amenities will find that booking a condo or a room at THEHOTEL at Playa Blanca will get everything we have mentioned, plus more. Access to our "Connected Concierge" is standard so you or a guest will get a truly VIP treatment by staying in contact with all available amenities by any electronic means, phone, Blackberry, computer, etc. Book an in-room massage or order room service by telephone! You will have it all! THEHOTEL at Playa Blanca will be the perfect mix of luxurious amenities and very competitive pricing.
*Marriot & Holiday Inn are indeed very nice hotels, we don't mean to degrade them, just to differentiate ourselves even from the chain hotels leaders.
Have Questions? Contact us: CDDG - Media Staff
