News

By Jeff Barton

An international arbitrator has ruled against the Trump Organization’s latest bid to muddy the future of the hotel once known as the Trump Ocean Club, the latest sign that the drama over hotel management in the building is coming to an end.

For investors and buyers, that is welcome news. After months of public spats, we believe there is pent-up demand for apartments in the building previously named Trump. Although a surge in sales took place in March, when two groups of investors jumped in to scoop up a package of 10 apartments from jittery owners, more conservative buyers have been sitting on the sidelines as the squabble played out in the media.

Now there is a real opportunity, with the potential for big news in the near future. The hotel has been renamed the Bahia Grand Panama, which is only temporary until the new hotel management agreement is signed with what is expected to be one of Marriott’s “Classic Luxury” brands, which includes J.W. Marriott, Ritz Carlton, and St. Regis. The new owner of the hotel had previously begun negotiations with  Marriott executives to operate and help the hotel, and when that deal is signed the whole complexion of the building will be changed.

Much like the stock market, there is little doubt that the hotel management dispute was a low point for the controversial hotel and residential complex but now it is reasonable to expect prices to rise again.

The latest ruling confirmed that the Trump Organization is unlikely to find help in the courts. The International Chamber of Commerce’s arbitration panel this week rejected the Trump’s attempt to regain control of the hotel management, which represented “a major setback” for the Trump Organization, according to coverage by Univision. The ruling follows days after a New York judge blocked another Trump’s legal maneuver.

The back-to-back rulings make it clear that the hotel management soap opera, which generated international headlines is coming to an end a new era is about to begin for the most famous building in Central America. As we discussed in a previous analysis, the end of the Trump role in the building is sure to unlock a wide variety of value in the building.

For those of us who have been involved in the building for years, the beginning of this next phase is exciting news. We expect sales transactions in the resort to increase dramatically as prices rise and the last remaining motivated sellers we are in contact with sell to savvy investors.

Jeff Barton is Managing Director of Punta Pacifica Realty. Jeff can be contacted at jeff@puntapacificarealty.com