The Inn on the Bay in Agat was sold to Balboa Asian Investments for $3 million (See "Asian hotel management company seeks Guam investments for its portfolio" in the April 17 edition of the Journal.) and will turn the property into a condo resort. The sale of the hotel was finalized on April 21. Balboa plans to invest another $2 million in renovations to the hotel. The representatives for Balboa Asian Investments are Matthew Giger executive director of the Marianas for Balboa and operations and business coordinator for Pacific Telecom Inc.; and Ronald E. "Ron" Mullers executive director international for Balboa.
Giger said "We are bringing in resort specialists from our sister company Choice Hotels Indonesia to assist in the redevelopment process. Starting June 1 the Inn on the Bay will be undergoing a major renovation and transformation turning it into a Bali style boutique condo. We will obviously be taking advantage of its unbelievable location on the water and building the concept around that. There are very few properties left on the island where you can get this close to the water. The facility actually hugs the Philippine Sea coastline."
The hotel has 70 rooms at a total of 44 100 square feet. Mullers said that during the renovations the rooms will be enlarged bringing the total number of condos down to 50. "The condos will be specifically targeted towards local and military purchase."
The renovations throughout the facility will include upgrading the pool area adding two new entertainment-based restaurants a coffee shop a convenience store an executive fitness center and a few other "demo-centric" specialty shops. "Ron Mullers is in Indonesia now working with manufacturers developing specifications to customize wood paneling stone tiles specialty lighting and interior fixtures windows etched glass furniture and other unique items that you would expect in a beachside resort in Bali or Indonesia " Giger said.
"They (the restaurants) are international concepts that we are looking to put in. Right now we are negotiating with the international concepts to come in " Mullers said. He would not say which franchise restaurants would be put in but he did say "They will be major chains. One will be an Asian chain and the other will be a U.S. chain."
Giger sees the upcoming increased military buildup on Guam as an opportunity. "It’s no secret there is a condo shortage on the island "" especially on this side of the island supporting Big Navy. With little to no inventory to choose from it translates into a huge opportunity for us with this project. Now that the military is increasing its presence on the island investors wanting to purchase condos or a large block of condos "" with the mission of using them as long-term rentals to the military "" will take a good look at this project. It’s a one-of-a-kind opportunity."
In addition to the renovations Giger said the inn’s location is prime property. He said that from the property tenants would be able to view sunsets go to the beach snorkel dive and dolphin watch from within their room. It is also a short drive away from four different golf courses the Agat marina and downtown HagÅtÃ±a.
"It (Inn on the Bay) will be a unique property an icon in Agat. We are looking to have some commercial space for divers. We plan to be a major player on Guam. Our strategy is to network with the local businessmen. We also look forward to working with the local community and the government. Success attracts success. I’m sure investors are looking at our success and that will benefit Guam " Mullers said.
As previously reported in the Journal (See "Hotels change hands rapidly more sales on the way" in the May 30 2005 edition of the Journal.) Philip J. Flores president of BankPacific and Casa De Flores Inc. which then did business as Inn on the Bay in Agat said the Casa De Flores Group was selling the property. The asking price was $4.5 million. MBJ