It wasn’t so much goodbye as “hasta la próxima.” Less than three months after pulling out of the Seaside Mariana project, Wyndham Hotels and Resorts, the largest hotel group in the world, is back in Nicaragua today to announce a new franchise deal with Milagro del Mar Beach & Golf Resort.
Roger Keeling (photo/ Tim Rogers)
The forthcoming luxury condominium and hotel project is in fast-forward construction on Nicaragua’s expansive central-Pacific coast—one hour from Managua’s international airport. The Wyndham Milagro del Mar Resort will open its first 42 rooms to the public in mid-2014, becoming the first internationally branded hotel on Nicaragua’s beachfront.
“All the pieces have finally come together. It’s real and it’s happening,” developer Roger Keeling told The Nicaragua Dispatch in an interview.
The arrival of Wyndham, which will be announced officially tonight in Managua, could be the start of what Keeling hopes will become a major beachfront tourism cluster spread across the Gran Pacifica property, a sprawling 2,500-acre coastal project one hour west of Managua.
“I’d love to see two or three major hotels along that stretch, lots of residential development, the golf course, and a bit of commercial development,” says Keeling, whose Milagro del Mar project will be the first resort within the Gran Pacifica master development. “I want to see that area thrive for the people who populate the area. Over the years we have become very close with the community there.”
Milagro del Mar’s master plan
The Milagro del Mar resort was originally developed as a private condominium project on the beach, but a confluence of economic, financial and political factors brought a halt to the project in 2010. “The world took a different view of buying a condominium on the coast of Nicaragua,” Keeling says. So amid the world economic downturn, the owners and developers of Milagro del Mar huddled and came up with a new plan: to find and international brand-name partner to manage the project as a hotel.
“It became critical for us to build a new business plan around this project, and when we looked at tourism trends and understood the need for hotel beds in the country over the next five years, we realized it made a whole lot of sense to take a really strong look at this project as a true condominium hotel,” Keeling says.
After a few years of retooling and meeting with potential investors and hotel partners—a process that included several setbacks, countless handshakes, innumerable kaffee-klatsches and more than a few Advil—Keeling was able to ink a deal with Wyndham and secure the financing he needed to restart the Milagro del Mar project. Now, thanks to the original work done on the project back in 2009 and 2010—more than a year’s worth of construction went into project before it was put on pause—Milagro del Mar is going up miraculously fast.
Phase I of the Milagro del Mar/ Wyndham project will open next year with 42 condos, a restaurant, lobby, pool and bar. Phase II, scheduled for completion by 2015, will be 42 additional villas and Phase III will be 128 hotel suites, bringing the total hotel project to 212 units.
Milagro del Mar is also working to improve and reseed its golf course, which will be expanded to 18 holes by the time Phase II is completed in 2015.
Room for growth
Keeling says his company started talks with Wyndham in May of 2012, always under the impression that Milagro del Mar would be one of two Wyndham hotels built on Nicaragua’s Pacific coast.
Milagro del Mar is also working to improve and expand its golf course. Pictured: holes 3 and 4
“Wyndham wants to be a major player in Central America. When we first talked to them, they said ‘We have no issue with having two hotels on the coast of Nicaragua, because we believe the market is there and we have many brands we would like to introduce’,” Keeling says.
He says Wyndham’s announcement last November that it had terminated its contract with Seaside Mariana came “as a surprise to us, and in some ways a disappointment to us because there is strength in numbers.”
Says Keeling, “With the number of tourists coming into the country and the projected deficiency of hotel beds, it was a disappointment that we weren’t going to have this affiliation in that area of the country.”
Still, Keeling hopes that Wyndham’s decision will encourage other hotel chains—perhaps Wyndham Hotel Group itself—to develop more hotels in the area to create a new central-Pacific tourism cluster. The Gran Pacifica property alone can support “one, two or three major international hotel brands and can probably support a boutique hotel or two,” Keeling says.
“It’s a prime spot,” he adds. “You’ve got two incredible surf breaks along that stretch of beach. And there is no other stretch of beach that is closer to the international airport in Managua. So it makes perfect sense that the area would become a huge growth area for the country as tourism increases.”
The idea isn’t turn the area into an Acapulco or a Cancún, Keeling says, but into a reasonable development cluster that can handle an influx of middle and upper-middle class tourists and a wide variety of activities—everything from business conventions and family surf trips, to baseball tournaments at the forthcoming baseball academy.
Milagro del Mar’s second phase will include a convention area that can handle specialty events, such as destination weddings, or business groups up to 300 people, Keeling says. It will be the first convention center on Nicaragua’s Pacific coast.
Nicaragua’s time has come
Keeling says he thinks the promises made about Nicaragua’s potential are finally starting to take form.
“This thing that everybody has been talking about for so many years may actually be here. Our feasibility study says the same thing: it’s Nicaragua’s turn,” Keeling says.
“All the efforts that have been put into tourism and development of a brand for the country, it is all starting to pay off because the world is taking notice,” he adds. “The world has decided it wants to come and visit Nicaragua. And we are going to do something special here to make sure we have a place to treat our guests really well when they get here.”
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So the spat between those other two developers hasn’t really soured anyone on Nicaragua…only them!
Bad business fighting in public!
What’s most refreshing is to have a forthright individual involved in a development here, who seems determined to do the rght things to both make this resort reach high standards and accomplish something that reflects well on the country, and helps it push ahead. It also appears to be a place that’s welcoming not just to wealthy visitors and property owners, as are others.
Someone also needs to tell these other people to stop this fighting and name-calling in public–it diminishes them and hurts the country they claim to love. You failed. Step aside, be quiet and let others move forward.
Also, kudos to Wyndham for its desire to come to Nicaragua and willingness to find the right project. This is very good news.
“becoming the first internationally branded hotel on Nicaragua’s beachfront”…isn’t Barcelo an intl. branded hotel? a bad one but it’s the one and only I’ve known for decades.
Funny how a solid business plan, sufficient funding and a good management team will produce results.
Kelvin,
The business plan and marketing has been ripped off from Seaside, the marketing material and sales collateral are just changed banners and project name. I encourage you to watch any of the webinar presentations by Phil Alexander and you will see that the info is form Grupo Mariana presentations some slides are even word for word, and in the same distinct order of information as Kevins.
Remember it was everyone who weathered the storm not just Roger at Milagro, and that seaside has made their adjustments due to the economic situations and re-adjusted accordingly, bringing you the brand hotel and a completely redeveloped master plan. The only difference is that MDM is continuing a building what was started and left abandoned years ago.
The only difference I see is Financing and with the right financing in place Seaside could complete
its first phase at or near the same time as Rogers announced timeline. A little more money a little more work!
The questions should be when was Gran Pacifica started and when did Roger joint venture to bail them out, then when did Roger get bailed out.
Also read the following from a past story regarding another big development whom needs no financing or brand name, Their name is the brand and derived from 100+ years of hard work, owning many businesses within the country and a very well respected family.
“The support of the government for the development of this project has been very important for us,” Pellas said. He says the government permits for Guacalito de la Isla have been “managed with efficiency and velocity,” helping the project finish its first phase within the six-year time frame and prepare its doors for opening in less than two months.
Pellas has not had the same experience in neighboring Costa Rica, where his Pellas Development Group is also working on a tourism project called the Santa Elena Preserve in Guanacaste.
“Just to give you an idea, (Guacalito) started at the same time as the project in Costa Rica, and in Costa Rica we still haven’t even been allowed to place the cornerstone,” Pellas said. “We keep requesting permit after permit and I think I going to die of old age waiting for permits. Meanwhile, here in Nicaragua, we are going to be inaugurating the spa and the golf course in a couple of months.”
Shawn, “With the right financing in place”…I could do anything!!
For a lot of these developments, the right financing was in place…it was called “clients money”.
I believe the key is more the sufficient funding, but that is only a good thing if their are sales to repay the loan. I believe carrying a substantive amount of debt in this economic times is risky business.
The original plan at Milagro del Mar launched in 2006 didn’t fair so well in 2008 when the crash came and as a result the building has been abondaned on the beach for 4 years.
Now as for good management, what a great plan, dust off the old plans, sand blasting the rebar and get a loan based upon a hotel brand that breached their contract in another development.
Genius…
Just to be clear, i do not mean any disrespect to any developers in Nicaragua, I think that forward movement is the key to growth. Kudos to Carlos for what he has accomplished in 6 years, Also it is nice to see others continuing with development.
Shawn, you seem to be pretty defensive about one development. Are you an investor there? I saw recently in Nica Dispatch that the developer whose side you seem to be taking bragged about taking in $ 21 M in sales. I’ve looked at their Due Diligence report just today, and don’t see ANYTHING but some blade tracks on a bunch of farmland. Huh? Where did the $ 21 M go? Inquiring minds do wonder.
I am not an investor, I am an observer like yourself. I do believe bragging rights are in order considering that the greater amount of money collected was pre financial crisis, and spent when times were more promising.
What about the purchase of land and equipment. sales cost, general administrative, operations commissions etc.. People still think that they are working on the same plan from 2007-2009.
The development has had to start all over in 2010 with new plans, concepts including the acquisition of Whyndham to push forward through its current economic time, some may call it weathering the storm.
The only thing missing is the equity finance partner to turn dirt to stone.
“The only thing missing is the equity finance partner to turn dirt to stone”. But Shawn, that can be said for a lot of projects down here. The rusty and twisted billboards of dreamers with “shallow pockets” dot the landscape. As with these projects, the money from clients that did buy lots or units has now been spent on the other other things you list off. Right now, all those developers would say the same thing, “The only thing missing is the equity finance partner to turn dirt to stone”.
I visited the Gran Pacifica project back in 2006 and Miligro del Mar was selling condos pre-construction with no financing in place. Construction started in 2007 and was stopped in 2008. It is nice to see financing in place to continue development of the abandoned structure that has been sitting on the beach for 4 years as an eye soar.
It is not unsual for developers to sell pre-construction to raise funds for construction but when the sales stop, this is when the trouble starts for everyone, including Milagro del Mar, Gran Pacifica, MonteCristo and now Seaside Mariana.
What will be interesting to watch is how Milagro del Mar services the debt of the financing of the hotel if sales are not strong, delays in construction, delays opening the hotel, lower than expected room revenues and overruns on cost.
If they can’t service the debt, do they lose the hotel and Wyndham is gone. Only time will tell if they can adhere to their projected opening date and convince enough people to purchase on the strength of the Wyndham Brand.
I seem to recall Gran Pacifica once had the Marriott Hotel and raised a lot of money on the strength of that hotel being in the project and now Marriott is nowhere to be heard from. Does anyone know what happened?
To be clear I am not an investor, I am the brother of Kevin Fleming. I have followed this project from the start, I have been to nicaragua and am very familiar with its past employees, current situation, allegations etc. Also I am not hidding behind a name like observer or others like it.
I am in the book, and on facebook, you can message me or look me up I live in Vancouver BC, whom might I be chatting with?
Shawn, don’t takeover this nice article about progress in Nicaragua. If you a looking for a debate about Seaside, add your comment to that “comment area”, not this one. It was a nice article, so please don’t hi-jack the comment on this forum. As mentioned in the article, Wyndham can have two locations in a country.
Shawn: I wonder if Nicaheat even owns land in any development in Nicaragua but certanly has a lot to say about things he knows nothing about.
Yes…a nice article about Wyndham Hotel who breached their contract with Grupo Mariana and signs with Milagro del Mar.
A nice article describing Roger Keeling negotiation with Wyndham while under contract with Grupo Mariana.
A nice article about a project that ontains financing based upon the strenght of Wyndham Hotel to finish a building that started 4 years year.
By the the time the 42 units are complete, it will be the end of 2014, making it a development of 1 single condo building that took 8 years to develop.
Let’s all say congratulations…
Let’s not be fooled by this development. It started as Gran Pacifica in 2003 promoting 54 holes of golf and a Marriott hotel. A joint venture completed the first condo building finished in 2007 and nothing else had been completed in 6 years for construction. The Marriott Hotel is now history but I contratulate Gran Pacifca completing the infrastructure and 9 holes of golf in ten years.
Now, Milagro del Mar promotes the golf course as if they developed it, they claim the first condo building as if they sold out the building and now under construction of the Wyndham Hotel claiming 20+ sales that were made in 2006/2007 like they happened last week and product is running out quickly.
It’s time all developers are held responsible for their actions and not just single out Seaside Mariana and unfairly judge Kevin Fleming and Maria Rueda for their efforts.
You, Nicaheat, are absolutely correct. Those who want to continue the debate, finger-pointing, accusations and all else related to Mister Fleming should do so on the comment area related to that story. Many of us could care less about that fiasco and simply want to support the positive progress being made at Milagro and other businesses in the country. These efforts to connect good news with negatives is counterproductive for everyone who truly wants to see Nicaragua make progress. Also note that the Milagro developer states clearly there is strength in numbers and the country needs more good projects to fully realize its potential.
Seaside Mariana is mentioned in the first paragraph of the article so it does have merit to continue the discussion of why they pulled out of the project. I believe we have not heard the last of this story and we’ll be hearing next Wyndham pulling out of Milagro del Mar when they start failing to meet their agreement or just decide to breach thier agreement as Wyndam did with Grupo Mariana. Next, we’ll be hearing about Wyndham signing an agreement with Guacalito. Roger admits talking to Wyndham early in 2012, I wonder if Roger even called Fleming to let him know of his interest in Wyndham. Since Roger feels it’s so great for Nicaragua to have multiple hotels, what better source to learn more about Wyndham than to ask Fleming. I suspect he’s just following the same pattern of not doing any due diligence similarly to hiring Phil Alexander, their Director of Sales who was fired at Grupo Mariana. I wonder what is the responsibility of Wyndham to disclose the signing a letter of intent with a competitor in such close proximity prior to the termination of the agreement with Grupo Mariana. My facts come from the article written: http://info.grupomariana.com/legal/bid/95583/Wyndham-Hotel-Group-Wrongful-Termination-of-Grupo-Mariana-in-Nicaragua
Here is the official press release:
http://www.wyndhamworldwide.com/media/press-releases/press-release?wwprdid=1385
Has any of the investors (PGA, GPA) received any sort of formal notification on this announcement? or, for that matter, has anyone received any formal update from them in the past few years….? I would think this sort of news is good, and something to share with investors. We received so many negative communications when the fighting took place, and then there was just radio silence.
I agree that there is more to this story, most notably on the front of questionable conduct during this whole negotiation process. Speculation leads me to believe that Wyndham was eager to enter the market and they became frustrated with Seaside’s ability to obtain financing. Enter Milagro del Mar, and for the spirit of discussion consider this:
1) In this article Roger admits to talking to Wyndham in May of 2012
2) Wyndham’s Franchise agreement with Seaside Mariana contains territorial rights
3) Wyndham formally terminated their agreement with Seaside on November 5, 2012
So in other words Wyndham was in active discussions with Milagro del Mar while under contract with Seaside. My guess is that the lawyers are going to sort this one all out. One thing is clear in my mind, and that is that is seems more than reasonable to question the integrity of both parties (Wyndham and MDM) while negotiating this agreement.
Am I the only one who questions whether the development will achieve the stated objective of “want[ing] to see that area thrive for the people who populate the area”?
I see great potential for there to be many positive outcomes for the people who populate the surrounding area. Direct and indirect jobs related to construction as well as hospitality once the resort is up and running will certainly help to raise the standard of living. In addition, the infrastructure already in place is accessible to those living on the road into the development.
No?
On behalf of Grupo Mariana, congratulations to the team of Milagro del Mar. We wish you success developing a Wyndham Hotel that is much needed along the Pacific Coast of Nicaragua. All the best in 2013!
My understanding is Wyndham stated their position in the termination letter to Seaside. The termination of business dealings was based upon a. Little to no progress on any construction projects b. Repeated missed construction milestones and c. No possibilty to catch up. What obliagation would they have to stay thereafter? It is great to see Wyndham carry on in Nicaragua at Milagro del Mar. If Seaside had built anything, perhaps there would in fact be two fine hotels
Geoff: Why do you keep bringing Seaside Mariana up in this article? You are not even invested in Seaside. What are your true intentions?
Maria, what a nerve you have. Speak to Shawn and “Emily” first.
Shawn was the one making the first allegations (above) against Milagro del Mar in an attempt to rain on their parade, and then had the stupidity to admit he was Kevin’s brother! Sore loser?
As Emily (whomever he or she is) said above “Seaside Mariana is mentioned in the first paragraph of the article so it does have merit to continue the discussion of why they pulled out of the project.Emily”…
Just sayin….
Kelvin,
As you mentioned I am Kevins Brother, I have nothing to hide and only my opinions to share. You keep hiding behind this and other posts anonymously giving your comments no merit or credibility. I do find it comical reading this thread, as I can only assume who you are, but its not hard to figure out!!!
Your opinion, Sir, was in fact an allegation of wrong doing by Milagro del Mar. I think a lot of people share the view that given the reasons that Wyndham pulled out of Seaside Mariana, anything you or Kevin says is going to be seen as sour grapes.
Some organizations respect the fiduciary responsibility they have to look after investors money, let alone protect the company name. Isn’t that all that Wyndham did?
Geoff, Kelvin (aka, Geoff or John), Kevin has congratulated Milagro del Mar on their success but you keep bringing up Seaside Mariana. Just let it go. Seaside has nothing to to do with this article anymore. You are not part of Seaside Mariana, you are not even an investor but you took it upon yourself to slander Seaside. You went as far as to send emails on behalf of the Seaside Mariana Investors Union to our Isla Customers. So I ask you again. What is in it for you?
As stated these are my opinions and that is what public forum is for. I did mention that forward movement is key to Nicaraguas growth. Also I do not mean disrespect any developers, but simply note similarities.
I will repeat what was written. My opinion is that the only difference I see is Financing and with the right financing in place Seaside could have completed its first phase at or near the same time as Rogers announced timeline. A little more money a little more work!
The questions should be when was Gran Pacifica started and when did Roger joint venture to bail them out, then when did Roger get bailed out.
Shawn, shouldnt the millions Kevin and Maria took in been enough to put in at least basis infrastructure? Why didn’t they?
Cypress: Its interesting how you keep coming up everytime I ask a direct question to the Bramwell’s that they know that they can’t publicly answer. They have no problem emailing behind the scenes though.
Just want to know why Shawn thinks everyone needs to be bailed out? If a project raises millions why isnt that enough to put in power and water? The Bramwell’s are doing it. Have they been bailed out?
Cypress
Your ignorance is hardly worth a response, but if you wish to make this personal, you may contact me anytime and I will educated you as to the world economic situation, how businesses have managed through it and others have perished because of it. Also I can explain to you what a bail out/private investment/joint venture/capital investment looks like.
If you truly are not as ignorant as you seem, look me up, I’m in the book!
Shawn if you belive what you are saying then say it in public. Are you saying that the millions of dollars Kevin took in were not enough to pay for basic power and water?
Cypress,
Why don’t you tell me your opinion of what basic power and water entails, since you are so hung up on it. The timeline, costs, and proper steps to achieving this goal, what permits/studies etc are involved. After you figure that out it would be nice if you could share it with us. I am not a developer, but I don’t think its something you just go to the supermarket to get, its a process, and I’m certain has many steps.
Shawn, i’m “so hung up on it” because isnt that what this case is all about? Say what you want to but If kevin actually put in infratructure and built something like he was supposed to would Seaside even be in this position? They would probably still have Whyndham. I find it strange too that the only people defending the Flemings are there family members, pretty much.
If you are needing a starting point, I suggest you look at the following developments comments “the major project during 2010 has been the power installation phase 1, which is almost complete after a 5 year effort.”
http://nicaprojects.com/index.php/Services-Infrastructure/Certainly
This is classic….of course its not the developers fault….They took the money, and now when questioned, create the smoke screen with the excuse, “Its not their fault”…..its the world economy….its the corruption, its this or that…..All the millions went for planning, meetings, anything but the development. The bottom line is they all read the same book….” How to rip off people in third world countries for dummies”.
Its so simple, first it helps to be a sociopath. Then to select a country where the judicial system is somewhat lacking. You are then able to do what you wish, knowing that any investor recourse can be controlled.
As a developer, you then sell your product, knowing full well that you will spend 20 cents on every dollar on the project…..with the rest going into your pocket. This is a classic ponzi scheme…..works well until your sells dries up….and you can’t keep the illusion going. I know personally of a developer in San Juan del Sur who did this….Instead of using the money from the sell of lots at his development to put in the infrastructure…he used the majority of the money to purchase more land for himself…..as he said ” using other people money’ was his secret…..
Of course when busted, the key is to spin it, to blame everyone else. To put forth so much confusion, lies, and compromised documents, by corrupt attorneys and accountants…..that the developer or con artist is made to look as the victim.
Its so easy……any dummy can do it
Mike, I appreciate your comment. However, this is not the case at Seaside Mariana and it can be easily proven. Its seems that the Investors Union along with other individuals have done a great job in slandering our company. But guess what, bank records don’t lie.
I confess that I am busy building infrastructure at Tamarindo Beach and cannot keep up with all this. By the way, Tamarindo Beach completed the lot side electricity service hook up for 250 lots last week. Thus, all our clients need to only order a meter and have lot construction power. This power project is 167 concrete power poles over 8.8 kilometers and has taken 6 years to complete, at a cost well over $300,000. Virtually a day has not passed in these years that I have not worked to move it forward in some manner. So, GOOD NEWS AT TAMARINDO BEACH! Shawn Fleming is quite uneducated on progress at the site. Electricity is complete and lot side drinkable water is coming smoothly along. The irony is Tamarindo Beach services are on the public road in front of his brother Kevins Isla Mariana. And none of their group has any idea of the status. This indicates it has been years, 3-4 years at least to our observation, that any Fleming has even been at Isla Mariana. Does pump and dump mean anything to readers?
As Maria Rueda uses my name… again, and yammers on. I must respond. Maria, you are full of misrepresentations. Looks like you and Kevin will be held accountable for a massive collection of falsehoods. I would like to say that I am responsible for this gigantic, multi staged, multi front attack on your scam,……. but it is not me. I hardly know Ted. I am not sending emails via Seaside Investors Union. I do not know who they are really. You are being attacked by a multitude of others that I do not know, nor where they are, nor how you ripped them off, nor how to contact them. It is multi faceted. Blaming me for your troubles is a joke. You are simply mis understanding the broad scope and force that is descending upon you and Kevin. As we told Kevin when he asked for clemency last week, we have nothing to say to you, and cannot stop the assualt, and are not responsible for your demise. You are. It could have been so different. We gave you 3 years of peace to clean this up, while you defamed the Bramwell name. We stayed quiet and worked on Tamarindo infrastructure. Now tell me Maria, has Kevin fled Nicaragua? OMG what a mess you two have made.
Geoff: How I’m I full of misrepresentations?
On Nov 12, 2012, at 9:42 PM, “Geoff Bramwell” wrote:
If you are invested in Seaside, Ted is offering a proposed solution. Oust Kevin, and he takes over. lives in Nica, married an influential Nica and has connections.
Geoff does this sound familiar? We have many other emails like this from you and your brother to our customers. You are clearly part of the Seaside Mariana Investors Union, Ted Cole, Michael Edmonds and other individuals. What do you have to say for yourself now?
Geoff: Very interesting how you keep posting the same thing on two different articles. So I guess we are playing this game. I will post the same thing I posted on the other article responding to this very comment.
Geoff you do realize that the customers you have sent emails to slandering our company since November 2012 will be reading your posting. They will realize that you are a lying when you say you have nothing to do with what is going on. You just keep digging yourself into a hole.