# Any News on Cabo Azul Resort in Los Cabos?



## Gdonald (Jun 16, 2015)

Our annual vacation to Cabo Azul was canceled last Nov due to Hurricane Odile.  We have reservations for a big family group to go back this Nov and are starting to seriously look at buying our plane tickets. But I can't find any reassuring info from DRI that they will reopen in Sept as planned. Absolutely no updates!! I even read on a MGV member blog that DRI had tried to sell off Cabo Azul after the hurricane and will be reopening just part of the resort.  Before we spend literally thousands of $ on plane tickets to Cabo in Nov, I wondered if any TUG members have current info on the rebuilding status of Cabo Azul?


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## tante (Jun 16, 2015)

Sounds like they are aiming for Sept 30.


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## Gdonald (Jun 17, 2015)

I know DRI is saying they intend to reopen Cabo Azul in late Sept, but they've been claiming that for months with no updated information about progress being made on the rebuild. I find that unsettling , and I don't understand the closed mouth secrecy.  Their disclaimer is that if thry'revunable to reopen on time in Sept, they'll help members with reservations find alternative reservations at another DRI resort, as much as possible.  Thar's jot reassuring enough to me to start spending $$$ on plane tickets, which we'll need to do soon if we're to get even remotely decent ticket prices and flight times. If DRI renegs on their reopening date, the airlines aren't going to let us rebook. I'm hoping a TUG member with inside DRI info, or any kind of recent info on the status of the resort will give me an update, since DRI isn't... I really hope that DRI is rebuilding Cabo Azul with integrity.


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## pedro47 (Jun 18, 2015)

Have you called customer service in Vegas or the resort for an update ?


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## davidvel (Jun 18, 2015)

Gdonald said:


> I know DRI is saying they intend to reopen Cabo Azul in late Sept, but they've been claiming that for months with no updated information about progress being made on the rebuild. I find that unsettling , and I don't understand the closed mouth secrecy.


The secrecy is probably that they're not absolutely certain when they'll open, or if another hurricane will disrupt their plans (there have already been 2 glancing blows the past few weeks), and they don't want thousands of people who spent millions on airfares to come back to them and say "you said you'd be open and we relied on this."


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## Gdonald (Jun 20, 2015)

*Update on Cabo Azul*

I posted this same question about the rebuild on a Trip Advisor website and received a reply from Jean-Louis M. , a property rep on the site in San Jose.  He says the resort is in the hands of the construction company but that it will reopen to the owners and public on Sept 1st.  He also said that new amenities are being added as they return the resort to it's former state prior to the hurricane. His comments eased my mind enough that we're going forward with our airline ticket purchases for Nov.  However he didn't respond to my question about whether the entire resort will be reopening or just a partial reopening...


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## Gdonald (Jul 20, 2015)

*Update on Cabo Azul*

DRI has been listening, and posted some pictures on Cabo Azul's twitter lead.  They're doing finishing work on the new palapa for Flor de Noche restaurant and swim up bar.  Looks great!  We're so excited to return to this beautiful resort this Nov!


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## nuwermj (Jul 29, 2015)

Does anyone know how DRI is paying for this construction? There was a hefty special assessment placed on owners in the Hawaii Collection when The Point at Poipu Kauai was damaged. Who is going to pay for the Cabo repairs?


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## T_R_Oglodyte (Jul 30, 2015)

nuwermj said:


> Does anyone know how DRI is paying for this construction? There was a hefty special assessment placed on owners in the Hawaii Collection when The Point at Poipu Kauai was damaged. Who is going to pay for the Cabo repairs?


If you are an MRV owner I suggest that you look at the purchase documents to see how special assessment situations are addressed.  Since this is a Mexico resort, it was probably sold as a right-to-use, rather than as deeds, so that will add a layer of complexity, as described below.

At Poipu the basic program was really quite simple.  There are deeds for the ownership of the resort.  The repair cost was estimated, then divided by the total number of deeds. That amount became the amount due from the owner of each deed.  Ensuing litigation ensured that there weren't short cuts taken in that approach. 

In Mexico, however, properties are almost invariably right-to-use instead of deeded. So the question will be how the issue of assessments is handled in the RTU documents.  Of course, a savvy developer will ensure that special assessments are passed through to the RTU members, and there will be no mention of this during the sales presentation.


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## Tikubb (Aug 1, 2015)

Maybe there is no need for SA.

Mr. Alan Bentley, Executive Vice President and Chief Financial Officer says on July 30, 2015:

"And finally, the company maintains business interruption insurance, to compensate us for any lost profit, associated with a covered event. As a result of damages incurred at our Cabo Azul property from hurricane Odile and San Jose del Cabo, Mexico, the resort has been closed since September 2014, resulting in lost profit, primarily from sales and financing operations and management and hospitality services.

Subsequent to the end of the quarter, we received $3 million as the first installment from our insurance carrier, under our business interruption policy related to lost profits. The cash will be recorded as other revenue, in the quarter ending September 30, 2015. The total claim is still being negotiated with the insurance carrier and any further payments will also be recorded in other revenue, during the period in which it is received. We expect the sales center at this property to come back online in the fourth quarter of 2015."

I would not be surprised if the accounting standards in timeshare operations in Mexico dictate that revenue from Insurance Claims are recorded as income to the parent company and losses are divided equally among the members of the club.
LOL


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## Ty1on (Aug 1, 2015)

Tikubb said:


> Maybe there is no need for SA.
> 
> Mr. Alan Bentley, Executive Vice President and Chief Financial Officer says on July 30, 2015:
> 
> ...



What he is describing is not damage insurance, it is profit insurance, covering things like lost timeshare sales, operating profits from the resort (rental of developer owned intervals, food and beverage income, incidental income, etc.) suffered by the DEVELOPER/OPERATOR,  NOT damage insurance.  While they surely have damage insurance, which may or may not cover the repair costs, you shouldn't look at this policy he is describing as benefitting RTU owners in any way.


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## Bill4728 (Aug 12, 2015)

> LATEST NEWS
> Smart Alert Cabo Azul is Re-Opening September 1, 2015
> We are excited to announce that Cabo Azul Resort is scheduled to re-open on September 1, 2015. You will find that the resort has been restored to its former glory with many additional enhancements, including new furnishings, upgraded door locks with modern technology, enhanced fitness equipment and more! Plus, we have utilized the restoration time to complete some of the building work that had been started in previous years so we are now able to offer you and your family more accommodation options.
> 
> We will still be making some minor finishing touches to the resort through late November 2015, so there may be some noise and visible equipment during this time.


So reopening Sept 1st




> Does anyone know how DRI is paying for this construction? There was a hefty special assessment placed on owners in the Hawaii Collection when The Point at Poipu Kauai was damaged. Who is going to pay for the Cabo repairs?



Cabo Azul was never sold as a separate resort but as part of the Monarch grand vacation (MGV) club.  (( and now as part of both the US collection and the Monarch collection))  So IMHO they would have to spread the SA over all the owners of MGV. This will have to include all ownership points owned by DRI not just private MGV pt ownerships.


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## T_R_Oglodyte (Aug 14, 2015)

Bill4728 said:


> > LATEST NEWS
> > Smart Alert Cabo Azul is Re-Opening September 1, 2015
> > We are excited to announce that Cabo Azul Resort is scheduled to re-open on September 1, 2015. You will find that the resort has been restored to its former glory with many additional enhancements, including new furnishings, upgraded door locks with modern technology, enhanced fitness equipment and more! Plus, we have utilized the restoration time to complete some of the building work that had been started in previous years so we are now able to offer you and your family more accommodation options.
> >
> ...



FWIW - the last sentence raises the possibility that only part of the resort will open, while work is being completed on the rest of the resort.


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