REH, in collaboration with the Algon Group, acted as advisors to the owner of the Peninsula Papagayo Resort and the Four Seasons Resort Papagayo in Guanacaste, Costa Rica. Subsequent to the successful completion of an operational turn-around and debt restructuring, we managed a worldwide structured M&A process targeting strategic investors and real estate funds, leading to a recapitalization of the Resort. The transaction closed in August 2016.
The Resort is world renowned as one of the most luxurious and highly regarded destination resorts in the Central American/Caribbean Region and consists of a Forbes Travel Guide Five-Star Four Seasons Resort Hotel with 182 rooms, suites and residences; an 18-hole Arnold Palmer Signature Golf Course with clubhouse and tennis center; a 180-slip marina with 40 rental apartments; a major beach club facility with restaurants, pool, spa and health club; 7 resort development parcels, 127 residential lots, plus substantial acreage approved for future resort development.
Hotel performance and real estate sales were initially robust, but suffered during the mid-2000’s downturn. The operational restructuring we led resulted in an increase of over $100 million of equity value and approximately $100 million of restructured senior debt.
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