Though this is the firm's first acquisition of this type, the partners plan on making similar purchases in the future. "We look to expanding on what we hope will become a major asset category for Belfonti Capital Partners," says Michael Belfonti, chairman. "We believe in the very strong economy and tourism trade in Aruba." The new owners plan a capital improvement campaign and will announce a re-flagging down the line. Belfonti says the resort offers significant potential for enhanced financial performance.

Belfonti says the firm also liked the opportunity because of the island's hospitality market has substantial barriers to entry. Strict development guidelines exist and the approval process for any resort development remains difficult. There are also physical barriers to entry as the beachfront property on the island is very limited.

The resort is located at JE Irausquin Blvd. 77 in the Palm Beach area north of Oranjestad, just five miles from Queen Beatrix International Airport. It is situated on approximately 7.5 acres of land and offers Aruba's largest convention and banquet spaces. There is also a 12,000-sf Casablanca Casino. The 18-floor tower provides every guest a room with a private balcony and ocean view, along with access to the 3,500-sf Intermezzo Day Spa. The property's retail space is currently 100% leased and has a variety of shops and restaurants, including Pago Pago, and Gandelman Jewelers.