Grand Velas sees Recession as Opportunity for Growth; an example for Playa del Carmen real estate | ArticlesBase.com
August 7th, 2009 by adminBuyers interested in Playa del Carmen real estate can see a valuable model in some of the Riviera Mayas top businesses. The recession is most certainly a time to act with caution, and as always, make decisions based on accurate, complete information; but with these conditions in place excellent growth opportunities can be found in Playa del Carmen real estate. Here in Playa del Carmen there are several examples of companies that have used this time as an opportunity to grow.
Grand Velas and the recession
Eduardo Vela, owner of the Velas hotels, opened a new resort in the Riviera Maya just two months after the devaluation of the peso in October 2008. The situation in which this resort was opened was by no means simple. Grand Velas was built on 86 hectares of land, which cost almost 10 million dollars. The first 378 suites were opened last November and within a month the full 490 suites had been opened. The resort opened exactly at the time when the exchange rate with the US dollar was least stable, and was fluctuating between 11.97 and 14.08 pesos.
Vela also was not daunted by the swine "flu crisis, which saw Grand Velas, a 490 suite resort, dip to almost zero occupancy during the most critical moments. In May, when the resort had only been in operation for 6 months, the resort a point when there was only one suite occupied!
Details of the Grand Velas resort
The investment for the first phase of Grand Velas was 260 million dollars; the investment was funded by Bancomext and BBVA-Bancomer. This same investment bank is in the process of authorizing another loan of 30 million USD to increase the number of suites available, which is currently projected to a total of 1,100. These are scheduled to be ready by the end of August. Likewise, the resort includes its own electric power plant, which can support the resort alone for 5 days. Grand Velas Riviera Maya provides jobs for 1,500 workers. The cost of operation reaches almost a million dollars a month.
Velas Enviromental commitment
The resort also maintains a balance with the natural setting in which it is located; of the 85 hectares which Grand Velas occupies, more than 43 hectares remain untouched. The resort has also replanted 25 thousand trees to maintain the natural atmosphere, and installed a water treatment plan which purifies and re-uses 65% of the resorts water to water mangrove growths " a very important species of trees in maintaining costal ecosystem " and the other 35% is returned to the ground water.
Grand Velas also employs a full time biologist who finds cenotes, for the purpose of preserving them and classifying them. Three professional divers work with the biologist to help carry out these tasks.
The Velas Group
The Velas group also includes the resort Grand Velas Nuevo Vallarta, which offers 297 suites, and Hotel Velas in Puerto Vallarta with 483 suites, which was a condo-hotel 16 years ago. In 2006, the Velas group also bought Hotel Real Quinta property in Puerto Vallarta, converting it to Casa Velas, a boutique hotel of 90 suites.
Velas is not the only company using the recession as an opportunity for growth. Another example is the Xcaret group, which has just finished the process of opening its new Xplor park; the park opened on July 6. And there are other cases as well. These companies are probably not acting without detailed, accurate information, showing that their current investments will pay off in the near future.
Potential Playa del Carmen real estate buyers can use this same principle. The recession can be an opportunity " there are a lot of great deals out there right now. But make decisions based on accurate, reliable information. The best place to obtain accurate, reliable information is from an experienced broker, 100% committed to finding the property right for their customers.
About the Author:
TOPMexicoRealEstate NETWORK; “Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!” Region: Playa del Carmen real estate Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. A Mexican Certified Realtor he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546.
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