NH Hotels to Invest $400 Million in the Dominican Republic

Spain-based NH Hotels is planing to pour some $400 million into the Dominican Republic´s travel industry over the next seven years to build a fancy resort, a golf course and several real estate projects, according to Victor Cabral, president of Cap Cana, a Dominican tourist group.

Mr. Cabral said the Spanish company will buy one of the most exclusive tourist offers in the Caribbean country -currently owned by the Cap Cana group- for $120 million. The one-million-square-meter vacant lot is located in Bavaro, in the easternmost province of Altagracia.

The official announcement made by the local impresario started making the rounds shortly after NH Hotels informed net losses by 17.2 percent in 2004. With a strong presence in Latin America, NH Hotels´ sales dropped 22 percent in the course of the past year and totaled $1.2 billion, especially following the sale of NH Cancun and the all-out refurbishment process undergone by NH Mexico City.

The most positive piece of information by the end of 2004 was the snapback of the company´s occupancy rates both in Europe and Latin America, two of the Spanish giant´s main markets.