Recession bites the “Great White” as Doral Resort and Spa goes for sale
The economic recession that seems to linger on endlessly, claimed another victim, the scenic Doral Golf Resort and Spa, the venue of WGC Cadillac Championship since 2007. The owners of the resort have decided to sell off the “Great White Course” to provide
them with some breathing space from the mounting debt.
The owner of the resort, the MSR Golf Resort, currently owns five golf clubs including the Arizona’s Biltmore and the Grand Wailea in Maui. MSR is of the view that Doral is churning out the lowest profits for the moment and has as such become a liability
for the parent company. The owners MSR Golf Resort are inclined to sell off one of the courses to lessen the debt burden and also try to exit the Chapter 11 Bankruptcy.
The lawyers for the MSR Golf Resort, in their official statement said, “Doral is at a strategic crossroads, to remain competitive in the long-term, the Doral should reposition itself as an elite resort. This repositioning will require a capital infusion
in exchange for improved profitability in the future...’’
“The Great White” is designed by the famous veteran golfer Greg Norman, and derived its name from Norman’s nick “White Shark”. The course is surrounded by residential blocks and its sprawling greens and fairways are often found reverberating with the bustling
traffic outside.
Apparently a disadvantage, the crowded neighbourhood has added to the Great White’s real estate value, which thereby compelled the owners to seek a buyer for the same. The rest of the four courses at the resort are said to maintain the status quo for the
moment, including the Blue Monster, the venue of the WGC Cadillac Championship.
In its court filing, MSR wrote: “The White Course encompasses 131 acres on highly valuable land adjacent to dense residential developments and a proposed mixed-use city center. As a result, the Debtors believe that the White Course would be more valuable
as an expansive commercial and residential development.’’
MSR Resort also seeks to alter two features of the existing resort as they mentioned in their court filing. The company wants to use the Great White for its own development project, which can be a real estate residential block or turning it into a commercial
hub.
Secondly, MSR Resort also wants to bring an end to its long term contract with the Marriot International which has the license to operate the hotel as well as the resort. MSR did not cite a reason of seeking an end to the contract with Marriot.
The bankruptcy judge will issue a final approval of the selling bid for the course. MSR Resort has stated in the filings that the course revenue is growing as the economy is gaining momentum and would prove to be a lucrative investment opportunity for the
buyer.
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