$300m Hyatt To Break Ground This Month in Costa Rica.
The $300 million Hyatt Hotel Resort, destined for Brasilito in Guanacaste but delayed for almost 12 months, will formally break ground next week, the developers have said.
A group of 75 people, including a sales force of 35 brokers from both the United States and Canada, will descend upon Brasilito to get a first hand look at the building site.
The Ministers of Tourism, Public Works and Transport, and the Environment and Energy have been invited to attend a lavish ground-breaking ceremony for the $100 million-plus, first phase of the project.
Also in town for just a matter of hours, will be the Australian golfer Greg Norman, who once spent 311 weeks as the world’s number one player, and who has agreed to design the resort’s 18-hole golf course.
“I know there were many doubters but I am here to tell you the project is now going ahead,” said a clearly delighted, Anil Kothari, Chief Executive Officer of New Jersey-based Global Financial Group, which is behind what is to be known as the Hyatt Regency Azulera Resort and Spa.
In brief comments to The Beach Times this week, Mr Kothari, said the project, which was originally expected to break ground in January, 2007, had been held up by financing.
When first announced, with much fanfare by President Oscar Arias in May of 2006, the entire first phase — which includes the 214-room resort, the golf course plus 64 condominiums — was to be funded by four Costa Rican banks.
Now there are three — the Central American Bank for Economic Integration (CABEI), Banco de Costa Rica and Banco Nacional. A $10 million commitment from a fourth bank, Banco Cuscatlan, is understood to have fallen through after the bank was acquired by Citibank in December of 2006.
“The delay was in financing,” Mr Kothari said. “You see, in Costa Rica people don’t move. It takes time, and I was committed to do local financing.”
At the time the idea of a tourist project of this size using solely Costa Rican financing was considered unique, but also more difficult to pull off. Sixty-four condominiums will be built first, and are likely to sell from $700,000 up to $2 million.
Sixty-four condominiums will be built first, and are likely to sell from $700,000 up to $2 million. There are at least 17 sales pending. The hotel is timed to be completed at the same time as the golf course, probably within 18 to 24 months, depending upon weather conditions.
Phase one will be built on 225 hectares (557 acres) just north of the town of Brasilito.
However the entire project, built over five to seven years and including the resort, 100 condominiums, up to 240 villas around the golf course, an unspecified number of single dwelling homes, a spa, gymnasium, six restaurants, a banquet room seating 350, various salt and fresh water swimming pools and a commercial centre, is likely to cost more than $300 million.
The total residential component is likely to be as high as 1000.
Construction on the hotel and golf course is expected to eventually create 2000 to 2500 jobs. Building permits have already been issued, and an environmental impact study is understood to have been approved by the National Technical Secretariat of the Ministry of Environment (SETENA).
The property, made up of two parcels split by the road known as route 155, includes about 155 meters of beachfront, part of which is under concession. The resort itself will occupy 47 acres, which the architects say will be built from wood, natural stone and include pitched roofs.
While a half dozen high-end hotels have announced plans to build along the Guanacaste coast, the Hyatt Regency Azulera Resort and Spa becomes only the second to break ground. Hacienda Pinilla, the sprawling 1,820-hectare beach and golf resort community has done a deal with the El Salvador-based Grupo Poma conglomerate, to build a five-star, 180-room, JW Marriott resort on their property. That is well into construction.
The announcement has been welcomed by tourism and real estate leaders, who in 2007 watched hotel occupancies dwindle and property prices ease.
“This is very good news,” said Cynthia Duran, President of the Costa Rican Global Association of Realtors (CRGAR). “Suddenly this is not just an announcement, it is actually happening, something we can point to.
“Depending upon how they are going to market and sell, it brings more inventory into the region, as well.”
Mauricio Cespedes, Executive Director of the Guanacaste Chamber of Tourism agreed the ground-breaking was a positive move for the region.
“First, and most important, is the number of jobs a hotel project of this kind is going to bring to the region,” Mr Cespedes said. “A number of neighboring communities outside Brasilito are likely to benefit.
“It is also important because it will bring another player into the zone, and that will give us more leverage as a chamber,” he said. Until now we have had Reserva Conchal and Hacienda Pinilla dealing with issues like infrastructure, security and jobs.
“This becomes another big player to bring pressure to bear on the central government for the things the area needs.”
A handful of major hotel projects have been mooted for Guanacaste, but have yet to break ground.
A Ritz Carlton Hotel, along with an 18-hole golf course and a 200-slip marina is slated to go on Zapotal Beach, in the north.
Late last year two Minnesota developers announced they would build a $120 million, 150-room Regent Hotel on Guanacaste’s Papagayo Peninsula.
Steve Case, the founder of the internet giant America Online, announced plans last month to open an $800 million beach resort just south of Playa Hermosa, featuring two boutique hotels.
Meanwhile, Rosewood Hotels and Resorts, confirmed it has signed a management contract with developers HPC Costa Carmel Limitada to manage a new luxury resort to be built upon a 60-hectare (150-acre) property on Playa Guachipelín.
The Beach Times.