Hilton Hotels announces return to Panama

Hilton Hotels Corporation announces return to Panama with four properties
May 18, 09 1:54 am
Hilton Hotels Corporation announces its return to Panama with the signing of four multi-year agreements in Panama City, Panama: two management agreements for a brand-new Hilton and new build Embassy Suites by Hilton hotel, one franchise agreement for a Doubletree by HiltonTM conversion and one franchise agreement for a newly built Hilton Garden Inn. Each hotel will represent the first in the country for each brand.
"We are truly excited about these developments in Panama City and being back in such a great city," commented Daniel Hughes, senior vice president of operations, Caribbean, Mexico, and Latin America, for Hilton Hotels Corporation. "These newest additions reinforce our commitment to add a number of properties to our Central America portfolio and to have a presence in one of the region's fastest growing destinations. We're looking forward to being part of a thriving city that continues to offer some of the best tourist attractions in the region."
The 351-room Hilton Panama will be a first class property developed by Star Bay Group, Inc., and Hilton Hotels Corporation will operate the hotel under the terms of a multi-year management agreement. Led by F&F Properties and its president Saul Faskha, construction of the Hilton Panama has begun and completion is scheduled for 2011. Located in Panama City's financial district, the hotel marks the Hilton brand's return to the capital. Just 13 miles from Tocumen International Airport and five miles from the Panama Canal, the Hilton Panama will boast an array of recreational facilities including an 8,200 square-foot fitness center, a 10,750 square-foot world-class spa, outdoor terrace swimming pool, and a Las Vegas-style casino. The property will have more than 22,000 square feet of meeting space, including a 7,500 square-foot ballroom. Dining options will include an upscale specialty restaurant, a three-meal restaurant with outdoor terrace and ocean views, and lobby bar. The 27-floor hotel will form part of a 68-floor mixed-use complex with 650,000 square feet of office space.
The Embassy Suites by Hilton Panama City will be developed by Sabadell Investment Inc. and Hilton Hotels Corporation will operate the hotel under the terms of a multi-year management agreement. Construction of the 306-room upscale, all-suite full service Embassy Suites by Hilton Panama City is scheduled to begin in 2009 with an estimated completion date of October 2011. Located in the prime financial district of Panama City, the hotel is approximately 12 miles from Tocumen International Airport and will feature a number of recreational facilities including fitness center, spa, outdoor swimming pool, gift shops, and casino. The property will offer a business center and more than 15,500 square feet of meeting space, including a 12,750 square-foot ballroom. Dining options will include a signature restaurant, a lounge bar, complimentary breakfast and evening reception area, and Flying Spoons outlet. The 21-floor hotel will be part of 71-story building with premier office space.
The Doubletree by Hilton Panama City will be developed and operated by Blue Star Hospitality, S.A., under a franchise agreement with Hilton Hotels Corporation. The 213-room property is undergoing an extensive renovation to re-brand as a Doubletree by Hilton hotel in Spring 2010. The eight-story hotel is strategically located at one of the city's most important intersections in the business district - Via España and Avenida Federico Boyd - across from the architecturally striking Iglesia del Carmen. The Doubletree by Hilton Panama City will offer a rooftop fitness center, pool and spa, retail outlets, 2,000 square feet of meetings space, and a full-service restaurant.
Developed by Metropolitan Hotels SA, the Hilton Garden Inn Panama will feature 163 spacious guestrooms and seven suites offering the Garden Sleep System® bed; ergonomic Mirra® chair by Herman Miller; complimentary wired and Wi-Fi high speed Internet access; high definition flat screen television; MP3 capable clock radio. The hotel also features a complimentary 24-hour business center; a comfortable lounge area to enjoy a cup of coffee in the morning or unwind at the end of the day with a refreshing beverage; and a total of 160 square meters of flexible meeting space -- ideal for business meetings, social events and wedding receptions. For dining options, the hotel will feature the Great American Grill® restaurant offering freshly prepared breakfast and dinner; evening room service and the 24-hour Pavilion Pantry® convenience mart with a selection of beverages, snacks, and sundries. Recreational facilities at the hotel will include an outdoor rooftop heated whirlpool; complimentary fitness center featuring Precor® cardio and strength equipment; and Stay Fit Kits® that can be checked out from the hotel front desk and enable guests to do yoga, Pilates and core workouts in the privacy of their guestroom or in the workout facility.
All properties will participate in Hilton HHonors®, the only guest rewards program that allows members to earn Points & Miles® for the same stay and redeem points for free nights with No Blackout Dates.
Ted Middleton, senior vice president, development, the Americas, for Hilton Hotels Corporation commented, "Hilton's expansion in Panama City is part of our overall plan to grow our portfolio of properties in the Caribbean and Latin America. Owners and developers understand the value of our brands and we are very optimistic about our growth opportunities in the region."
Panama City is the political and cultural center of Panama, and the financial center of Central America. Located at the Pacific entrance of the Panama Canal, the city is well known as the home of some of the tallest skyscrapers in Latin America. Tourists can explore a variety of attractions including the famous Bridge of the Americas spanning over the Panama Canal, tropical forests, and the city's old quarter featuring a waterfront promenade, theaters, museums, restaurants, and the presidential palace.
Full text in http://ehotelier.com/hospitality-news/item.php?id=A16245_0_11_0_M

CNBC covers Latin Fever in Panama

Some people are still bullish on Panama....

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Real Estate October 2008

Latin Fever

With real estate bubbles bursting across Europe, investors are heading for booming Latin America, says Sorrel Downer

Sweltering in a battered taxi in the heart of a street market in Panama City, it's easy to forget that this is a top destination for some of the world's most powerful commercial real estate investors. But, owing to the turbulence in the North American and European property markets, Panama, along with Mexico and Brazil, is beginning to look like a safe port in the storm. As European investors look to reduce risk through diversification and higher returns, Latin America is coming under closer scrutiny.

The service, natural resource and manufacturing sectors got the lion's share of the €67bn in foreign direct investment poured into the region last year, but there has been sustained growth in the real estate sector that doesn't look like easing off, and it's real estate that is regarded by many analysts as one of Latin America's best performing assets.

The UK has been slow to go to Latin America. "Sitting here in London," says Thompson, "very few people in charge of funds have Latin America on their radar, mainly because there's very little experience of doing business there, and more interest in Asia and Russia. But people are putting a toe in the water. We're starting in Brazil because of the size and stability, but also looking at places like Costa Rica and Panama - countries where there is genuine wealth, inflation is under control and there's a boom in real estate underpinned by a growing middle class."

Investors see the potential of real estate in Panama City's old quarter, now undergoing renovation, funded partly by foreign capital. But then Panama is full of positive signs: the expansion of the canal, proposals for refineries, and the development of banking, communications, tourism, and call centre industries evoke a certain optimism. Already, there are so many prestigious tower block developments underway along the shoreline of the Bay of Panama that there's talk of a glut. But enterprising investors are finding solid alternatives: financing office developments, for example, sometimes on a large scale such as the €435m 'mini-town' project on a former military base in the Canal Zone for which UK firm London & Regional Properties beat off 16 international competitors; or residential investments in exclusive gated communities and resorts up the coast, on the Azueros Peninsula, and on the Pearl Islands, or retirement communities in the temperate mountains around Boquete.

New arrivals to Panama will find themselves in hot competition with homegrown investors, as well as the North American firms squeezed out from Costa Rica, where land prices have rocketed and prime beachfront land parcels have been snapped up.
http://www.cnbceb.com/ViewArticle.aspx?PageID=1238

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More about Panama real estate investments in the Home: World - Panama Buying the Home of your Dreams DVD video from Amazon

Clauses in real estate contracts confirmed as abusive

http://mensual.prensa.com/mensual/contenido/2007/12/01/hoy/negocios/1191494.html

After the 8th Circuit Judge rendered an initial May 31, 2007, decision in the Duque vs Neto S.A. case in favor of the buyer of a condo (see Tough times for sellers of Panama City skycrapers?), the Third Superior Tribunal confirmed the decision on appeal.

The Tribunal only considered as non-abusive a clause which allows the developer to charge 1% of the price until the registration of the sale, which leaves as abusive clauses:

• A 5% unilateral increase in the purchase price if the seller deems that building materials have increased in price,
• The seller to withhold all previous downpayments if it unilaterally considers that the buyer is in default of agreement obligations,
• The seller to unilaterally decide not to build and simply return all downpayments without interest and with the seller waiving all claims for said action,
• All disputes to be subject to arbitration excluding the consumer protection courts.

The defendants Neto, S.A., are entitled to file a cassation action before the Supreme Court. Although precedent is not fully binding on other judges and this case does not declare void clauses in other contracts, it provides powerful arguments to those buyers suing developers with contracts that have similar clauses.

This consumer protection case serves only those buyers - foreign or locals - who have a single home in Panama. Those who are buying several properties for resale are not protected by the concept of abusive clauses. Needless to say, the expense of having a contract in Spanish translated into the buyer's language goes a long way towards avoiding running into an abusive clause.

Town hall meetings on new skyscrapers are open to property owners

Following the succesful lobbying by neighbors of El Cangrejo against skyscrapers, the Ministry of Housing (MIVI) is having a number of town hall meetings (cabildos) in order to have the opinions of residents for and against additional construction.
Neighbors rejected 3 out 4 zoning changes proposed in Bella Vista, where older homes in 2-lane streets are being demolished every week to make way for skyscrapers and restaurants with insufficient parking.
The calendar of meetings scheduled by MIVI are:
.27 AUGUST: San Francisco (includes Paitilla and Boca la Caja).
.28 AUGUST: Juan Díaz (includes everything at each side of the Southern Corridor starting from Costa del Este).
.31 AUGUST: Parque Lefevre (includes Panama Viejo).
.3 SEPTEMBER: Pedregal.
.4 SEPTEMBER: Las Cumbres (includes Cerro Azul).
.5 SEPTEMBER: 2nd Bella Vista meeting.
.6 SEPTEMBER: 24 de Diciembre (includes parts of Tocumen).
Foreigners cannot vote in Panama elections, but as property owners they can participate in these town hall meetings.

Tough times for sellers of Panama City skycrapers?

http://mensual.prensa.com/mensual/contenido/2007/07/15/hoy/negocios/1048739.html

120 draft construction proyects have been approved for buildings above 25 stories and 80 more have been applied for.

The value of construction permits in Panama City for Jan-Apr 2007 is of 321.9 million - 30% more than for the same 2006 period. 15 skyscrapers above 50-stories are already in the pipeline.

Ministry of Labor Executive Decree 15 of 2007 seeks to address the increasing number of worker fatalities in skycrapers by requiring that builders of projects above US$1million have an independent Safety Official. The issue was brought to the public's attention after several days of small demonstrations by trade unions.

The Executive Decree imposes a US$10,000 contribution to an Occupational Safety, Higiene and Health at Work for the Construction Industry Fund, run by the Ministry of Labor. Where I come from, that is called a tax, which cannot be enacted by Executive Decree, and is therefore unconstitutional.

Builders are not happy...

In a related story, the Minister of Housing signed July 13 a resolution imposing a 14-story limit on buildings around the Andres Bello park of the El Cangrejo neighborhood, as well as 5-meter clearance.

Residents of the 60-year old neighborhood lobbied the government for this limitation, being the first time residents succesfully curb the current construction boom. Destruction of sidewalks, debris (or workers) falling off construction sites, noise of machinery during evenings, cement poured unto streets and sewers (with the resulting overflow of fecal matter) and other inconveniences have made Panama City construction companies a very unwelcome corporate citizen, affecting current neighbors and even incoming snowbirds seeking their balcony in paradise.

In the meantime, the III Justice Tribunal has to decide on the appeal filed by a Panama corporation against a May 31 judgment of the 8th Civil Circuit Judge, whereby some clauses of a purchase agreement are deemed "abusive". The case started when the Consumer Protection Authority received the complaint of the buyer of a San Francisco apartment who signed a form agreement prepared solely by the seller with no negotiation. The judgment deemed as abusive 5 clauses which provide for:

• A 5% unilateral increase in the purchase price if the seller deems that building materials have increased in price,
• The seller to withhold all previous downpayments if it unilaterally considers that the buyer is in default of agreement obligations,
• Billing the buyer a 1% monthly charge on the amount outstanding after issuance of the occupation permit, whether the buyer uses the apartment or not,
• The seller to unilaterally decide not to build and simply return all downpayments without interest and with the seller waiving all claims for said action,
• All disputes to be subject to arbitration excluding the consumer protection courts.

We can expect that after the appeal is decided, the defendant sellers will file a cassation action before the Supreme Court, so a final decision will take years to be effective.

URLs (Yahoo registration required):
http://groups.yahoo.com/group/Live_in_Panama/files/Jurisprudencia/Sentencia_55_07_promesa_inmueble1.pdf

http://groups.yahoo.com/group/Live_in_Panama/files/Jurisprudencia/Sentencia_55_07_promesa_inmueble1.pdf
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