Rumors cite unlikely interest in Alegria from Hard Rock

POSTED: 12/30/14 12:07 AM

St. Maarten – Jeff Berger reports in his St. Maarten weekly News electronic newsletter about a rumor that Hardrock International is interested in taking over the former Caravanserai Resort in Beacon Hill that is currently in the hands of Alegria Real Estate.

At the same time, Berger dismisses the rumor as unlikely, and he explains why as follows: “First, we have no reason to doubt previously acknowledged stories regarding the takeover of Simpson Bay Resort by the Seminole tribe, including construction of a large centerpiece mixed-use high-rise including a Hard Rock Casino and a year-round resort/convention center.

Second, when the Seminole tribe takes over a property, it knows exactly what it’s dealing with and has precise future plans which are usually quite expansive. The Caravanserai property, recently renamed Alegria, offers little opportunity for high-rise expansion because of the adjacent airport. Likewise, underground parking is impossible because the property is next to the ocean and gets pummeled in hurricanes. Even if some buildings are demolished, which wags are saying is likely, there still isn’t much room there for a typical big Hard Rock Casino and a sizable Hard Rock International hotel. It doesn’t make sense to us.

Third, none of this means it won’t happen – it just means we don’t think it will happen. Is it possible that Alegria owner Ray Sidhom is planning an upscale conversion of the property for investment and ultimate resale purposes? That option would not surprise us, and it would explain why the property is being groomed as a hotel instead of an upscale timeshare development.”

 

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