We identified an immediate opportunity to increase guest room rates and introduce an EP Plan with an optional FAP plan for guests that prefer an all meals inclusive plan. The increase in revenues is reflected in the 5-year business pro-forma. Management has kept their rates below the comp set to attract their loyal client base directly while limiting their use of OTA’s.
We also identified an added value opportunity to upgrade
Curtain Bluff to a Trophy Status Resort in Antigua competing directly with Jumby Bay. This would significantly increase the profile and value of the asset and its revenue base. We estimate that physical upgrades to the public area restaurant and kitchen, the beach front restaurant, and guest rooms/ suites would cost approximately $5.0 million or less. Architectural and construction plans and cost can be arranged through an Antigua based contractor.
There is an excellent opportunity to develop 7 ocean front villas on the existing site by relocating the Tennis Courts and an additional 3 villas on the southern section of the property. These 10 villas would be about 3,000 SF, can be used to increase the number of suites/villas in the resort or alternatively sell them to high net worth individuals in the United States or in the United Kingdom. In view of the high demand for oceanfront real estate, we expect these units can be sold for a premium exceeding $1.0 thousand per square foot.
Curtain Bluff is being offered unencumbered by a management agreement or franchise. An investor possesses the opportunity to bring in a new management company or operate the hotel as an owner operator to revamp the marketing strategy and build asset value through expansion.
Overview
ECONOMY
Tourism is an essential source of revenue for the economy, accounting for more than 50% of the gross domestic product. Antigua is famous for its luxury destination resorts which makes the Island the ultra-high end leisure travel destination in the Caribbean.
Investment banking and financial services make up an important part of the economy. Major banks include the Royal Bank of Canada, Scotia Bank, Pricewaterhouse Coopers, and Lloyds Banking Group.
Antigua is also home to three leading medical schools that contribute to the local economy and the Health Care System. They are the American University of Antigua, the University of Health Sciences and the Metropolitan University College of Medicine.
TOURISM
Antigua is an upscale Caribbean destination for those who love the beach sailing, water sports, such as yachting, snorkeling, kayaking, scuba diving, and jet skiing. Destinations for snorkeling include Cades Reef, Carlisle Bay and Deep Bay. There are 365 beaches in Antigua and exploration is the favored pastime as it boasts stunning beaches with white sand and turquoise blue waters.
In 2019 Antigua hosted in excess of one million leisure travelers from the United States, United Kingdom, Canada, the European continent, and South America. Hospitality receipts amounted to 990 million US dollars.
The weather in Antigua and Barbuda generally is low humidity with temperatures that average 80.6F, with a range from 73.0F to 84.2F. The coolest period is between December through February.
AIRLIFT TO ANTIGUA
VC Bird International Airport is the largest airport in Antigua and Barbuda. There are 23 airports around the world that have direct access to St John, Antigua. Destinations include London from United Kingdom, Toronto from Canada, United States from Miami, New York, Newark, Boston, Charlotte, and Dallas.
Regional service is provided from the Dominican Republic, Sint Maarten, Jamaica and Providenciales.
Carriers include American Airlines, Jet Blue, United Airlines, Air Canada, and West Air, from the United Kingdom service is provided daily by Virgin Airlines and British Airways.
