Nov 28 2008
Trouble in Caribbean Developments
There’s nothing tranquil about two Caribbean resorts, regardless of the soothing laps of waves on their undeveloped beaches.
Cap Cana resort is a massive development including four luxury hotels, three golf courses and a mega yacht marina. Now, it stands half way through construction and deserted thanks to the economic crisis that has swept the globe.
When Lehman Brothers collapsed, so too did its $250 million loan. Talks to negotiate a $100 million short-term loan have also left the resort at a literal stand-still.
“Our project has been affected by the economic tsunami that has paralyzed the global financial markets,” said Cap Cana President Ricardo Hazoury.
Another hotel off of the secluded West Ciacos is also suffering. The Ritz-Carlton Molasses Reef resort has been brought to a stand-still after 60 Chinese workers revolted in demand for back wages that have not been delivered. Nearly 160 Chinese workers have since been sent home to China, and the future of the resort remains unclear.
