Company

Sale of the Orlando resort

02.08.2021 – As part of our long-term portfolio strategy, we have sold our resort in Orlando (USA). We have also sold the facility in Nysted (DNK), which had been leased out for the last ten years. We will use the proceeds from these sales, that are in excess of ten million Euro, for further capital expenditure in our resorts.

At a glance:

  • The demand from our shareholders and members for holiday apartments in Orlando had been rather low in recent years, accounting most recently for just 20 % of the average occupancy

  • The resort in Nysted had not been available since 2009 and had been leased out since 2011

  • The proceeds from these sales of USD 14,280,000.– and DKK 15,100,000.– will be used for future resort renovations and repairs

  • In the future, we will be able to devote even greater attention to our core markets in Europe

These proceeds will help us to accelerate our capital expenditure significantly over the next few years, allowing us to deploy our capital where it will be of greatest benefit to our shareholders and members.

Silvan Odermatt, Chief Financial Officer

We ensure that the resort portfolio remains attractive to the Hapimag community. The focus of our ongoing evaluation is the economic viability of every resort, in terms of: 

  • financial performance

  • condition of the facility 

  • demand from shareholders and members. 

With this in mind, Hapimag launched an assessment of the Orlando and Nysted resorts – even before the Covid-19 pandemic. This resulted in a decision to dispose of these properties. A separate sales process involving professional support was then initiated for both resorts, which was successfully concluded for both properties this summer.

The sale of the resort in Orlando will allow us to devote even greater attention in the future to our core markets in Europe, where the relevant know-how and structure already exist. 

The proceeds from the sale of both resorts will flow mainly into future renovations and repairs of existing resorts, such as the large projects in Paguera and St. Michael. These proceeds will help us to accelerate our capital expenditure significantly over the next few years, allowing us to deploy our capital where it will be of greatest benefit to our shareholders and members.

Spotlight on the Orlando sale

Hapimag Resort Orlando

The Orlando resort (USA) had been available to our shareholders and members since 2002. This facility is located on Lake Kissimmee in the state of Florida, USA.

Why was it sold?

  • The resort had been attracting fewer and fewer bookings from shareholders and members. The Hapimag community recently accounted for just 20 % of the occupancy – even before the Covid-19 pandemic. 

  • Most of the occupants were tourists who were not shareholders or members and had booked via external booking platforms. 

  • The total earnings were not enough to justify future capital expenditure. There were also additional indirect costs in connection with the management of the subsidiary in the USA.

  • The long distance made operational management very complex as we are devoting more and more attention to our core markets in Europe. 

For these reasons, we looked into the possibility of selling the facility. This year, a suitable buyer was finally found in “Berkeley Lake Townhomes LLC”, a company associated with “SAR Apartment Capital LLC”. The proceeds from the sale amount to USD 14,280,000.–.

Spotlight on the Nysted sale

Nysted

The former Nysted resort in Denmark had been available to our shareholders and members between 1979 and 2009 and had not been operated by Hapimag itself since then.

Why was it sold?

  • The resort had not been part of the Hapimag portfolio since 2009 – due to low occupancy rates. The property had been leased out from 2011. 

  • The external lease was not covering costs, so a sale was sought.

  • The timing of the sale was ideal. The coronavirus crisis has led to a surge in demand for domestic holiday tourism in Denmark. In addition, the start of construction activity on the nearby Fehmarnbelt Tunnel has had a positive impact on property prices.

For these reasons, Hapimag looked into the possibility of selling the facility. This year, a suitable buyer was finally found in the form of “Taipan Ejendomme ApS”, a subsidiary of the family-run company “Mønsted Gruppen ApS”. The proceeds from the sale amount to DKK 15,100,000.– .

Where will the proceeds go?

News about the renovation in Paguera

Outlook for renovation projects