7 News Belize

Caye Chapel Finally Sold to Mexican Luxury Hotel Group
posted (December 9, 2014)
Caye Chapel, it's been on the selling block for years…first we heard the Four Seasons Group of luxury hotels would buy it, and then it was the Sheridan group with a Canadian connect, then the Yumi group out of the British Virgin Islands, and then the Qatari's, and in between a few other rich names popped up. But none of those sales materialized, until now. BELTRAIDE sent out a release this evening saying that the sale of the 265 acre island has been completed, and the new owner is an un-named Mexican luxury hotel development group.

According to BELTRAIDE, the group owns and operates luxury developments in Mexico City, Cancun and Acapulco and they expect to partner with a, quote, "renowned global luxury hotel brand."

These preliminary renderings were released today - and the release says work on the new tourism project should commence in early 2015.

The deal is significant for tourism because of the promise of a true luxury brand, but it's also big for banking, because Caye Chapel - acquired to settle a debt in 2011 - has been an albatross on the Belize Bank's books since that time.

So, how much did it go for? We are told the Mexican group bought it for approximately 23 million Belize dollars - what would have to be considered a distressed price considering that it was on offer for over 30 million dollars at one point - and we have seen real estate web listings which put that price at 45 million US dollars.

History tells us that Belize first black millionaire Isaiah Morter owned the island in the early 1900's and had a large coconut planation out there. Latterly, former American coal billionaire Larry Addington bought it and developed a private airstrip, an 18 hole golf course and resort on the island which has hosted Beyonce Knowles and Tiger Woods among its exclusive clientele.

Addington filed for bankruptcy in 2012.

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