Falor Cos. Perceive Acquisition Opportunities As A ‘Shore’ Thing

CHICAGO, IL— The acquisition of the Cheeca Lodge & Spa should be sufficient evidence The Falor Cos. has its corporate eye determinedly peeled for opportunities involving some of the nation’s leading resort-destination properties— particularly in Florida. But just in case industry observers haven’t yet gotten the hint, the company is preparing yet another attention-getter as it reportedly closes in on the purchase of the Ritz-Carlton Palm Beach. As Falor Cos. President/COO Robert Falor told HOTEL BUSINESS®, his firm— in concert with a major U.K.-based equity partner— is well into the “letter-of-intent” stage of the transaction for the plush, 270-room mid-rise beachfront property. Falor further anticipated the $107-million deal to buy the hotel from its current owners Crescent Real Estate Equities and WestBrook Partners should close by the middle of September. When all the pieces do finally fall into place on this particular deal, it should make for a most fitting sequel to the recently completed $34.5-million acquisition by The Falor Cos. and Johnson Resort Properties (teamed with investor Geoffrey Hockman under the ownership name of Cheeca Holdings LLC) of the 206-room Cheeca Lodge & Spa from Olympus Real Estate. Billed as a veritable fishing/watersports haven, the nearly 60-year-old Islamorada property’s last renovation (of its public areas) was carried out some three years ago, Falor said. Accordingly, now that the venerable site has changed hands, another $12 million is being committed to upgrade the facility. With the thought being to evolve Cheeca Lodge & Spa into a U.S. mainland alternative to the Ocean Club on Paradise Island (in The Bahamas), Falor pointed out the property would accentuate its family-themed water-oriented features going forward— all the while making sure the on-site ambiance is “high end… without being snobby about it.” He further noted RockResorts International will continue to manage the property; The Falor Cos. will asset-manage it, and Johnson Resort Properties President/CEO Jerry Johnson will oversee the overall renovation of the Florida Keys resort, including the planned conversion— and ultimate sell-off— of 120 of the property’s rooms as condominium units. Finally, Falor contended his company has long displayed a definite focus on the Midwest and Southeast and, as such, is not only checking out The Sunshine State for buying opportunities. As an example, he alluded to a mid-July $52-million addition of the Renaissance O’Hare (slated to become an Omni Suites property) as proof the organization is well aware of deal-making opportunities outside Florida. Moreover, without going into detail, he allowed he and his associates have similarly heard of “an interesting high-end hotel possibility” in New York City that could well merit a closer look as a candidate to expand the company’s current portfolio of 10 properties owned, 15 managed and— of course— one (Cheeca Lodge & Spa) now being asset-managed.