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Seattle Developer Plans Chain Of Luxury Casinos – In Guatemala
Alekson's Luxuriant brand a public-private partnership and a philanthropic endeavor.
Seattle—Jim Alekson understands why people shoot him a skeptical look when he explains his plans to start a chain of luxury casino resorts in the Central America nation of Guatemala.
After all, the former chief operating officer of Milliken Development Group once shared that skepticism. "I was invited to Guatemala a couple years ago, and I looked at the country at thought, 'Oh, do I really want to get involved in what I perceived to be a Third World country?'" Alekson says. "Of course, my perception of the country has changed dramatically over the time I've been working there."
Alekson sees immense luxury tourism potential in this developing country of 13 million people immediately south of Mexico. His Seattle-based Alekson Development Group has signed an agreement with the Guatemala government for control of six gaming licenses in exchange for 20% of the net gaming win being donated to the Guatemala Pediatric Association. An additional percentage of the profits will be donated to other charities, Alekson promises. "Primarily, we're being set up so we can take the majority of the profits for some resorts and use them for various government agencies to improve the lives of the people of Guatemala," he says.
The gaming operations will be branded as Luxuriant World Resorts and operated by a third-party gaming company—Alekson is not sure which one yet, but he says it will not be a Las Vegas-based operator. "It may be more culturally conducive to have someone come out of Europe—Spain or Portugal, perhaps," he says.
Adjoining hotels will feature one or more international flags, and the resorts will be collectively marketed within a luxury consortium called Luxuriant Masterpiece Collection. Each Luxuriant resort will be between 300 and 500 acres (121 and 202 ha) and will cost in the range of US$200 million. New Jersey-based Horizon Hotels Ltd. will act as asset manager for Luxuriant properties.
Alekson has not yet settled on sites for the resorts, but he says destinations near the UNESCO World Heritage-protected city of La Antigua, along with Flores El Peten, near the ancient Mayan ruins of Tikal, are likely candidates for investment. Alekson expects to start development on the first property this year, with the first Luxuriant property slated to open by 2012.
Future Luxuriant resorts are planned elsewhere in Central and South America, with a goal of six properties open within 10 years. Peru, Argentina and Brazil are long-term targets, as is Cuba.
"One of the things that intrigues me is being able to go back into the Havana harbor and gathering the gambling and hotel establishments that were in the waterfront in the heyday of the 1950s and bringing those back again," Alekson says. "I think that would be an absolute treat to be able to do that again. You could create such an opportunity, from a tourist point of view, and use those same profits to stimulate the economy in Cuba."
Alekson considers Guatemala a logical jumping-off point for the Luxuriant brand due to its close proximity to the United States and its geographic diversity of mountain, beach and jungle locales. That the country is largely unknown to tourists gives it an added mystique, he says. Americans, Canadians and Western Europeans are expected to make up the bulk of visitors.
So what changed Alekson's mind about Guatemala's viability as a destination? He spent a week driving around the countryside meeting with natives.
"I went, 'Whoa!'" he says. "There are some parts of Guatemala City where you find clubs that are comparable to New York—there are some very sophisticated people in Guatemala. Now, granted, there are some parts of Guatemala that are impoverished, and that's part of what we're doing with the philanthropy."
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