A little bird told me you were in Loreto recently! Wasn’t me in Loreto.
What are your thoughts and what is going on with the project? We have been trying to engage but with no luck. We stay in touch on all fronts and hope it somehow circles back to us. All parties at least know we are an option. We have a strong vision for the project well rooted in the original concept. I think Loreto Bay will be successful in the near term although it will take a few years for prices to recover. As long as everyone bought for the “right” reason meaning to use their home and enjoy the region then all will be well. Any flippers will be in trouble assuming they financed their purchase.
What did you think about Chuck Bedsoles email? Chuck’s email was for all intents and purposes party line and meant to bring things to a head which it has done. He is a very intelligent resort expert which you may not have got to know because of the severity of the situation.
What is Citi & Chuck waiting for in a buyer? The waiting for the right buyer part is a difficult answer to articulate. Let’s just say they would like to recover as much of their investment as they can and in this economy it is difficult for new buyers to predict the return of the market which has a significant impact on the price they are willing to pay as the cost of equity today is so high.
What is your opinion about Fonatur taking over the Hotel? The Fonatur assumption of the hotel will just keep a heartbeat going in the hospitality assets. They won’t be able to do anything very positive while operating as a caretaker. I expect their tenure to be short.
It appears to me that all is heading in the right direction for you and your friends. The real losers in all this are the original investors, Citi and the town of Loreto which relied on transfer taxes etc… to stay alive. They are in serious pain now. If I were you I would rally the owners at the right time to do things for the townspeople. The foundation is the right way to go, just be sure to orient the funds towards the town’s sustainability rather than the turtles for now.
They need to survive for you to survive down there and you will need them as your friends. They probably don’t have good feeling about Loreto Bay today with the impact its demise has had on them.
All the best, Michael