A truly unique opportunity exsists to acquire the majority stake of TRUMP OCEAN CLUB’S hotel assets (“Hotel” or “Property”). The world-renowned Property is ideally situated in one of the most sought-after real estate markets in Latin America and the Caribbean, and is the tallest and largest building in the region. Steps from Punta Pacifica’s sophisticated shops and nightlife, less than five minutes from the financial district and city center, and minutes from the Tocumen International Airport–the Trump Ocean Club is the premier hotel in Panama.
The Trump Ocean Club International Hotel and Tower Panama rises 70 stories above the Panama Bay along Punta Pacifica’s pristine peninsula. The building’s sleek design evokes a majestic sail fully deployed in the wind. The Trump Ocean Club Hotel features 369 luxurious condo-hotel rooms and suites; the 202 units offered include the majority of the existing suites, including curve suites, one-bedroom suites, and a presidential suite. A total of 368 units are currently participating in the Hotel rental program. The Property, opened in 2011, is exceptionally well maintained, in accordance with the standards of a branded, luxury resort. Included in the offering are all the hotel’s common areas, over 32,000 square feet of restaurants and bars, oceanfront pools, the hotel operation, parking rights, and over 21,000 square feet of meeting rooms and ballrooms. The sale also includes concession rights to the pier and dock, outdoor deck space and over 10,700 square feet of prime, leasable restaurant space.
INVESTMENT HIGHLIGHTS
+ Iconic luxury hotel, offering world-class guest rooms and amenities, with waterfront location and pier
+ Significant upside from market recovery/growth and property ramp-up
+ Number one performing hotel in Panama – RevPAR index is 124% of peers – with 369 rooms and suites and world-class amenities
+ Other building amenities (including outdoor deck, leased restaurant spaces and ferry dock/pier) can be combined with purchase of hotel to enhance guest experience and immediately drive cash flows
+ Developer in final stages of its residential sale program, where units have been sold at record-breaking prices
+ F&B profit share to hotel owner to increase to approximately 68% in 2016 and subsequently 100% in 2021
+ Operational expense reduction of $500K expected in 2016
+ Stable market due to pervasive U.S. dollar denominated economy, which shields investors from currency exposure
+ Low cost of labor in Panama, which allows for better cost control
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