Sunterra Purchases Premier Oceanfront Property in Cabo San Lucas

[Spence]

LAS VEGAS, NV, Dec 06, 2005 (MARKET WIRE via COMTEX News Network) -- Sunterra Corporation (NASDAQ: SNRR) announced today that it has acquired the Misiones del Cabo Hotel and Resort property in Cabo San Lucas, Mexico. The property offers stunning views of both the Sea of Cortez and the city of Cabo San Lucas. Existing on-site amenities include pools with swim-up bars, whirlpool spas, tennis courts, a poolside bar and grill and two distinctive and secluded beaches. The resort is a short drive from Los Cabos International Airport, is less than three miles from downtown Cabo San Lucas, and is located near two world-class golf courses.

Sunterra's site plan for the vacation ownership resort calls for three building phases, with an estimated retail value of approximately $200 million at full build out. The first two phases, which will comprise approximately one-third of the total units, are expected to be complete in 2006. The units in the third and final phase will have dramatic oceanfront views of Cabo San Lucas and the famous arch at "Lands End."

Nick Benson, President and Chief Executive Officer of Sunterra, said, "This upscale location is a valuable addition to Sunterra's core western U.S. locations in Hawaii, California and Arizona. The largest concentration of U.S. Club Sunterra members is in the western states, and Cabo San Lucas is an extremely popular destination for them. We are delighted to permanently secure another outstanding resort for Club Sunterra."

The total cost of the project at full build out will be approximately $50 million, which includes initial consideration of nearly $11 million for oceanfront land, the related resort hospitality management contract, and construction deposits. This purchase will provide replacement vacation interest inventory to support sales in the region and adds an attractive vacation resort destination for members who currently utilize Sunterra's existing southwest, California and Hawaii resorts. It will eventually represent another distribution point for Club Sunterra as well.

 

[fnewman]

Is there anything of value there to trade into right now or are we going to have to wait for the new constructions to be completed?

 

[Spence]

www.cabovillas.com/properties.asp?PID=37
www.hotel-rates.com/mexico/cabo-san-lucas/misiones-del-cabo-resort.html

If these describe the right place, it looks like it was previously hotel/resort with 1 and 2 bedroom suites. Looks really nice from all the pics on these sites. So there should be someplace to go before any building gets underway. Just a guess.

 

[lv_maui]

About Time

www.cabovillas.com/properties.asp?PID=37
www.hotel-rates.com/mexico/cabo-san-lucas/misiones-del-cabo-resort.html

If these describe the right place, it looks like it was previously hotel/resort with 1 and 2 bedroom suites. Looks really nice from all the pics on these sites. So there should be someplace to go before any building gets underway. Just a guess.

It is about time that Sunterra expanded its resort location list for US members to go to. This is the first real quality acquisition that has been done other than what Europe has been doing. In my opinion, it is about time!! A good sign that they must be recovering nicely from the BK.

 

[Spence]

Has any TUGger had any experience with this property?

 

[fnewman]

We will be making a cruise stop at Cabo in February. If time allows, I will try to get by there to look at it.

 

[Karen G]

There are some TUG reviews here.

We took the timeshare tour there a couple of years ago. I think new management/development will be a good thing for this property as it didn't seem to be managed very well. It does have a lovely view of Land's End and it's not as far away from Cabo San Lucas as most of the other resorts on the corridor. It's still too far to be within walking distance.

 

[randomm]

We own at Misiones

I am an owner of Misiones. I just found out that Sunterra purchased it last week (even though the sale was Dec. 6 2005).

We love it there! Although there is pros and cons. Some of the older units need updating. The jacuzzi tubs on the deck should never have been built. It is very private and borders an amazing lagoon in which you can snorkle in without fear. We love this cove and spend 1/2 of our days there. The views are some of the best in Cabo. We often do a fishing charter, the bartender at the pool will fry up your fish for you for a small tip, and we usually share it with whom ever is around. We usually pay to have our unit stocked with food items prior to our arrival. There is a car rental on property. Drawbacks include only one real restaurant within walking distance. It's a little far from town and a huge hill to climb if you opt to take public transit. (They do have a bus that takes you into town at certain times, but you have to sign up for it ahead). And the diliputated building on the left you have to drive by getting to the resort.

It is a great place for families, although the pools are smaller than most high end resorts. Maybe not so great for those who have dificulty walking or taking stairs.

We own a two bedroom that can sleep eight no problem. I'm hoping that this transaction will be a good one for us, and it sounds like Sunterra will be updating the property.

 

[Spence]

Misiones del Cabo Hotel and Resort

We will be making a cruise stop at Cabo in February. If time allows, I will try to get by there to look at it.

Frank,
Did you stop by and visit?

Anyone else have any info on when we can expect to see this resort in the Club?

 

[Spence]

I'm told that Misiones del Cabo Hotel and Resort is currently undergoing renovations. Club Sunterra anticipates the ability to accept reservation requests sometime at the end of the 1st quarter in 2007.