? Business Strategy for Resort Real Estate Investments


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Horizon’s investment strategy is a relatively simple. We will be purchasing resort properties in Central and South America and the Caribbean Islands. After extensive research into the variety of resorts available to the public in our target areas, we realized that there is a substantial void in the mid-tier of the market. In countries such as Nicaragua and Panama there are a large number of “Back Packer” resorts. These are general 1 and 2 star resorts with few amenities and services, which cater to those simply looking for a low price and a clean room for a few days as they travel. On the other side of the spectrum are the upper end 4 and 5 star resorts that cater to the business traveler or corporate retreat sector of the industry. What is difficult to find are the mid-tier resorts that cater to couples, families and small groups. This is the area we will focus on. We will purchase “Back Packer” resorts with good locations, which can be purchased for reasonable prices. We then upgrade the services and amenities to a standard that will attract a more affluent and longer stay client.

A perfect example is Costa Rica. 20 years ago the resort and tourist industry there was in a similar state. The clientele was mainly surfers and eco-tourists. But as resort owners realized that American and Canadian citizens were looking for tropical destinations other than Hawaii or Cancun, they began to add more amenities and services and started upgrading their resorts to be more “Family Friendly”. The result, as anyone who has been there recently can tell you, has been a dramatic shift in the resort business.

Today Cost Rica is a one of the top tropical vacation destinations in the world. As a result of Costa Rica’s success many of the other countries in the region have begun initiatives to bolster their hotel and tourism industries. The competition has started to become significant enough to prompt the Costa Rica hotel industry to further invest in the industry. (Read about Cost Rica’s resort initiative)

Currently we are in negotiations with several resort properties as possible acquisition targets. The global recession that began in 2008 has created an extraordinary opportunity to purchase resort properties. There are a large number of small resorts which have struggled greatly to make a profit or even remain in business. Many of the owner of these privately owned resorts are struggling are eager to sell. With very few purchaser of these mid-tier properties, the market prices have been reduced significantly.

Once purchased, each resort will be renovated and the necessary amenities and services added. Other additions will include the installation of energy saving systems, security and communications upgrades, room décor upgrades, employee training and incentive programs added and potentially building of additional rooms where expansion is feasible. Due to the low labor costs in the target markets these upgrades and build outs can be made with relatively low capital investment.

Once Horizons has in excess of 12 million USD in assets and solid and established cash flows, the company intends to become an international REIT and be listed on the larger stock exchange.

We are raising investment funds from via a Reg D 506(c) Private Placement. The offering is in the form of convertible preferred dividend paying shares.