The vendor of the hotel property is RC Cayman Holdings LLC; the company that filed a writ in March demanding the immediate payment of nearly US$234 million from Cayman Islands developer Michael Ryan, according to court records.
Mr. Ryan’s company Cesar Properties developed the Ritz Carlton, Grand Cayman on Grand Cayman’s Seven Mile Beach a decade ago. The development included the hotel property and a number of high-end condominiums that were put up for sale.
According to documents filed ahead of the 31 October auction: “The sale shall be a public auction to the highest qualified bidder. The property will be sold as a single block and will not be divided and sold in lesser amounts.”
The ‘terms and conditions of auction’ document states that the entire property includes 12 unsold condominium units owned by Cesar Properties and Condoco Properties, as well as another 14 unsold lots [out of an original 19, five of which have since been developed] that were designated for development of “deckhouses”. There is also some vacant land available for future development.
The property offered as part of the auction includes the five-star Ritz-Carlton resort, including 365 guest rooms and suites. That includes 65 rooms available through contractual agreements with third-party condominium owners on the property.
The Ritz golf course, the ‘Blue Tip Nine’, is part of a strata plan common property and is not being included in the auction.
“The reserve sale price shall be and is defined as the sum of US$240,000,000,” the auction documents state. “If the reserve sale price is met by a bidder and there is no further bidding, the auctioneer will acknowledge…and that bidder will become the purchaser.
Please read the full details in Thursday’s editions of the Caymanian Compass…
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Cayman wake up. The failure of the Ritz, the Westin and the Holiday Inn are signs that tourism is in big trouble. Why? Global economic slow down and tighter financing requirements. Not Cayman’s fault,
The good old days are long gone. Government must tighten it’s belt. The days of government largess are over. Government must live within its means. Failure to do so we see Cayman go the way of Greece and Spain. Don’t think so. Tell me then what do think will happen when the Cayman government can not make a bond payment? Cayman can not print dollars the way the U.S. can. Cayman needs to balance the budget and pay off existing debt just as an individual must. If this means cut backs, then it just has to be.
I can answer that.
Just look what happened to Turks and Caicos.
Diddo that Friend of Cayman.
Caymanians have this illusion that we are the only destination with blue water and white sand. We think people will just continue to come here.. but why should they?
We need to increase our tourism product and infrastructure YESTERDAY. Our airport is a dump, we have no cruise berthing facilities, no port for private boats. Our restaurants and hotels are expensive, our nightlife is dismal at best.
Take gambling as an example. Back in the day, you had to go to Vegas or Atlantic city if you wanted to gamble. Now you can go to almost any major US city (Miami and Tampa for example) and find a casino within driving distance. All Latin American countries have legalized gambling as do most Caribbean islands that consider themselves a destination. Think about the government revenue that would have been generated by a casino had we implemented it 10 years ago. I fear we may have missed the boat on this, but hey, better late than never.
Does the Government have a Lien on the property?
I understand there is still some duty payments which where Deferred? Or have those been written off?
Actually that’s quite a bargain reserve price for a 5 diamond Caribbean beach resort. Should be sold rather easily and then it’s time to move on and forward. I expect it to be unbranded and made exclusive. The core line staff is the greatest asset and will continue to step up. Middle management is 50/50 at best. Guidance team will move on rather quickly.
This is a great opportunity for a real local-local to take it up a notch…..
If it sells at that price, it can only be on the basis of future Capital Appreciation – there is no way that the hotel is making a Net Profit which would represent an acceptable return on the capital invested.
I suspect we may find that this is a done deal and that there will only be one bidder – this has all the appearances of a manipulated transaction.
I have visited Grand. Cayman for almost 40 years. Changes to The Island are staggering. The worst was the presence of the Ritz Carlton. It is an insult to the natural beauty of the beach. I wish it were not being sold at auction and instead would slide beneath the sand.