Belfonti Makes $230M Resort Buy

NEW YORK CITY-Belfonti Capital Partners has acquired the Aruba Resort, Spa & Casino in Palm Beach, Aruba for $230 million from Aruba Hotel Enterprises NV. The off-market transaction is the local company’s first venture into the hospitality forum. The 478-key site, previously known as the Wyndham Resort, is the largest hotel in Aruba.

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.