Blackbeards Resort

[Parkinsons]

What? 2. 5 million US dollars! Seriously? The prior owner made out like a bandit.

I've never been to BB, but I was curious to see if US $2. 5 million is an outrageous amount. So I did some quick math.

I'm guessing the sales price would include the land, hotel, furniture, inventory, etc. For a hotel with quite a bit of amenities (pool, restaurant, bar) and its size, I'm lowballing all the "hard assets" at US $900,000. Again, not an expert in DR real estate, so that's just a guess.

That'd leave a business value at US $1,550,000. Normally businesses are sold between 2 and 3 times their annual revenue. Not an expert in the hospitality industry either, so I'm guessing a 2. 5 multiple, which would be fair for an established business that's still in its prime.

That means the business has to have an annual revenue of US $620,000 - break that down to 365 days per year, equals to US $1,698.63 daily. Lowballing an average daily room plus food and drinks sold at US $80, the place has to have a minimum of 22 guests per day, to justify the sales price. (I'm pretty sure they make more than $80 per guest per day, the guys there are captive and spend loads on alcohol. Also BB might take a cut from the chicas' take?

So I think while US $2. 5 million sounds like a lot for a business in DR, it can make sense. The previous owner may be doing some seller-financing, allowing the buyer to pay back a portion in installments. Assuming the seller bought the place a while back at a much lower price, he may have recouped all his investment from the buyer's down payment, and then the monthly installment the buyer pays him back is nice gravy.

How many rooms does the place have? Generally on any given day how many are filled?

[Dickhead]

Latin American Economics 101:

1) You think your business is "worth" $2. 5 million BUT.

2) You know no one HAS $2. 5 million SO.

3) You make an agreement with someone who has $25 thousand and agrees to pay the rest over time while giving you a share of the profits in the meantime, THEN.

4) This asshole lies about the profits, and refuses to give you agreed-upon profit share anyway, BECAUSE.

5) You lied to him in the first place about how much money you were making and how much money you owed suppliers, repair people, and so forth (contractors' liens), THUS.

6) The business goes downhill due to infighting, deferred maintenance, supplier problems, etc. , HENCE.

7) The business closes down due to lack of supplies, licensing issues, failure to bribe the right people, etc. , and EVENTUALLY.

8) The original seller regains the business after a protracted legal battle, by which time the property is in way worse condition, the clientele has been lost, etc. , and FINALLY.

9) The original and now again owner finally DIES and the business gets tied up in a protracted pissing contest among all his legitimate and illegitimate offspring, WHEREAS.

10) It again remains vacant, deteriorates, etc. , until no value is left and the government, lawyers, greedy relatives, and corrupt police have extirpated all possible liquid value.

Any questions?

[Manny51]

I rarely have seen a sale of a business that is well run and liked be for the better after a sale in the DR. First this is a much tougher a business to run then most realize, just look at FOD or the mansion in Colombia. Second too many times in the DR the next guy has no plan, no money, alternative motives, which leads to the raising of prices. Third these types of businesses are getting tougher to run and own in the DR, especially with that Carnival port being close by. John's DR connections and willingness to put money into the business are very important and have made it as rock solid and reliable as an American business. No doubt Tim knows the business so we will see.

I don't doubt your knowledge of local history, but I would wonder why its so hard to continue to succeed. Blackbeards has THE local name, and from what I understand, one of hte most successful local businesses of any kind. As long as he doesn't change anything fundamental, I don't see how he can lose. Is it something like, not paying off the local police correctly?

I just hope that he has enough money to fix the showers. The biggest problem there has always been the plumbing and reliability of tap water.

[Manny51]

If Tim is the new owner wow. Where does the night manager get 2. 5 million? Maybe John gave it to him. LOL.

What? 2. 5 million US dollars! Seriously? The prior owner made out like a bandit.

[RadPoker]

If Tim is the new owner wow. Where does the night manager get 2. 5 million? Maybe John gave it to him. LOL.

[Doker44]

Is the sale final?

I've never even seen the current owner.
He's been absent for a long time. I think he is recuperating in Florida, right?

I rarely have seen a sale of a business that is well run and liked be for the better after a sale in the DR. First this is a much tougher a business to run then most realize, just look at FOD or the mansion in Colombia. Second too many times in the DR the next guy has no plan, no money, alternative motives, which leads to the raising of prices. Third these types of businesses are getting tougher to run and own in the DR, especially with that Carnival port being close by. John's DR connections and willingness to put money into the business are very important and have made it as rock solid and reliable as an American business. No doubt Tim knows the business so we will see.

[Husker Dude]

BB is already sold, Tim the day manager is the owner. I asked him about the rumor when I was there in May and Tim confirmed it to me. He is the new owner.

I just heard that this may not be true, that Tim may have lied to my face. So I will await further news.

[Husker Dude]

I heard BB is for sale for about 110 million pesos. I heard it from a chica working at BB. Not sure it is true. But it is not entirely shocking as the current owner is clearly absent for quite a while.

BB is already sold, Tim the day manager is the owner. I asked him about the rumor when I was there in May and Tim confirmed it to me. He is the new owner.

[Lou32]

Is the sale final?

I've never even seen the current owner.
He's been absent for a long time. I think he is recuperating in Florida, right?

[Doker44]

I heard BB is for sale for about 110 million pesos. I heard it from a chica working at BB. Not sure it is true. But it is not entirely shocking as the current owner is clearly absent for quite a while.

If this is true not good news.

[StrawBoy]

I heard BB is for sale for about 110 million pesos. I heard it from a chica working at BB. Not sure it is true. But it is not entirely shocking as the current owner is clearly absent for quite a while.

[CuningLinguist]

Bliadun, TwoSticks99, thanks for the information. I look forward to getting blown by a Dominican honey.

[TwoSticks99]

Interesting. I tried to research as much as I can about Blackbeards and this was the first mention of any rate lower than 1800 for ST. Can anyone please confirm then that a Beej's going rate is RD $500? Or was this a special circumstance? Would this only be done in the jacuzzi area?

Thanks for the information!

I was at Blackbearsd in April this year when I took the girls to the hot tub for BJs I always gave them a $20. And when I take them to my room I always give $40.

[Bliadun]

If you do come, you'll pay RD $1800.

Interesting. I tried to research as much as I can about Blackbeards and this was the first mention of any rate lower than 1800 for ST. Can anyone please confirm then that a Beej's going rate is RD $500? Or was this a special circumstance? Would this only be done in the jacuzzi area?

Thanks for the information!

[CuningLinguist]

Later on I went to the jacuzzi with 2 who took turns on me. One did a very good DT. Had another good time and decided to call it a night.

Yesterday I was feeling good for a few hours. Took 2 more to the jacuzzi for some fun, but wasn't interested in bringing either of them to the room. Instead brought DT girl from day before up. She left me worn out. Turned down quite a few offers when I went down for dinner and decided I wasn't feeling well enough to bother.

Jacuzzi. 500 per girl.

Exchange is 42.5 per $1 USD.

Interesting. I tried to research as much as I can about Blackbeards and this was the first mention of any rate lower than 1800 for ST. Can anyone please confirm then that a Beej's going rate is RD $500? Or was this a special circumstance? Would this only be done in the jacuzzi area?

Thanks for the information!