Home Local RIU officially notifies Aruba government they will purchase Westin Resort

RIU officially notifies Aruba government they will purchase Westin Resort

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ORANJESTAD – Recently, RIU management officially announced to the Aruba government they have reached an agreement with Wells Fargo to purchase the Westin Resort & Casino Aruba.
In 2006, Belfonti Capital Partners obtained the property: it transferred from the Wyndham to Westin flag at the end of the year. In 2009, Belfonti Capital Partners transferred the shares to the banks, which became the owners of the property. Following that, Wachovia Bank took over the shares. When Wells Fargo bought Wachovia Bank, they became the owners of Westin.
Wells Fargo put the hotel on the market and in 2012, RIU won a bidding contest to purchase the property. In July 2013, the two parties signed a Letter of Intent, with the stipulation that RIU had 3 months time for due diligence to meet the terms of the agreement. RUI didn’t agree with the conditions stipulated, and presented counter- conditions, which Wells Fargo accepted.
The Aruba government, in turn, informed RIU of the recent changes in the labor laws, effective this year, which stipulates that RIU must take over the employees of the Westin, including their accrued benefits. RIU also came to an agreement with Starwood, the company that at present manages the hotel.
RIU also informed the Minister of Tourism that once the process to buy the Westin (about 2 months) is finalized, they will start with renovating and upgrading the facility. The cost of the renovations are expected to be between 30 to 40 million U.S. dollars