Traded on the OTC Bulletin Board and formerly known as Caribbean Clubs International Inc., the property is the first resort acquired by CCI, which plans to sell private memberships to boutique style resorts located in the Caribbean that are owned, leased or managed by the company. CCI expects to build a portfolio of boutique hotel properties and gradually convert the properties to private clubs for exclusive use by its members. The company says it expects to generate revenue from two sources--the operation of each resort and the sale of memberships. In the industry, operators are typically compensated by receiving 3% to 4% of gross revenues and 8% to 10% of net revenues of the managed resort.

The price of the leasehold acquisition and the purchase option was not revealed by the company in its SEC filing regarding the transaction and the company's CEO Fred Jackson, one of two employees, did not return a phone call seeking comment. In another recent filing the company estimated its cash requirements for the next 12 months at $5 million, of which $4.3 million was the cash portion necessary for the acquisition of two resorts. "We expect to acquire resort properties through a combination of cash and debt payable to the seller," states the filing. "The amount of seller financing will bear annual interest of rates between 8 to 12% and will be secured by the resort property."

Jackson, in a statement, said the Palmetto Beach Hotel exhibits many features of a preferred vacation destination including a swimming pool, oceanfront bar and a restaurant. Moreover, Jackson says Barbuda, a sister island to Antigua, is one of the least populated and least developed Caribbean islands, with only 1,200 residents and just three hotels, one of which is Palmetto Beach. The island has long been a mecca for those desiring exclusive privacy in an unspoiled Caribbean atmosphere, he adds, and is a scuba diving destination because the many reefs surrounding the island feature hundreds of shipwrecks.