Belmond said early Monday it has agreed to acquire the entirety of Cap Juluca, a 96-key luxury resort on the Caribbean island of Anguilla, British West Indies, for $84.6 million. At the same time, Belmond said it has agreed a 250-year ground lease for property that comprises approximately 167 acres, including approximately 250,000 square feet of additional developable beachfront land. The deal is expected to close by early June.
Belmond said it expects to spend $36 million on renovation and expansion projects, which it expects to complete by the end of 2018. Cap Juluca is expected to generate adjusted EBITDA of between $12 million and $14 million following renovation and expansion and upon stabilization, and expects that the resort will start positively contributing to the adjusted EBITDA in 2019.