ALLEGRO RESORTS Corp. To Acquire Jack Tar Village Resorts
SANTO DOMINGO, DOMINICAN REPUBLIC – Allegro Resorts Corporation, the world's largest operator of all-inclusive resorts, announced today it has signed a letter of intent with Sammons Travel and Resorts, Inc. to acquire Dallas-based Jack Tar Village Resorts, Inc.
According to Allegro Resorts' president and CEO Alberto del Pino, Allegro will acquire all of the assets of Jack Tar Village Resorts including 100 percent ownership of a resort and casino in Puerto Plata, Dominican Republic and assume two leases for resorts in Montego Bay, Jamaica and Cancún, México. Allegro will also acquire management contracts for two resorts in Guanacaste, Costa Rica and a marketing and franchise agreement for a St. Kitt's resort.
Under the agreement, Jack Tar Village Resorts will continue to operate as a brand under the Allegro banner, joining existing brands: Royal Hideaways, Diamond Resorts and Caribbean Villages.
"Jack Tar is a well-known and respected all-inclusive chain with a strong North American customer base. The company is a perfect complement to Allegro's existing operations," said del Pino.
"We will upgrade the properties as necessary and are confident that we can expand the brand into new destinations," he added.
Del Pino also said that the strong support provided by Dallas-based Adventure Tours USA, another Sammons Travel and Resorts subsidiary and Jack Tar Villages' largest customer, will continue, following Allegro's acquisition of the chain.
With this transaction, Allegro will add the following properties to its existing resort portfolio:
Jack Tar Village Puerto Plata Beach Resort & Casino,
Dominican Republic (292 rooms);
Jack Tar Village Cancún, México (177 rooms)
Jack Tar Village Montego Bay, Jamaica (132 rooms)
Jack Tar Village Royal St. Kitts & Casino (242 rooms)
Malinche Real Beach Resort & Spa, Guanacaste, Costa
Rica (100 rooms)
Costa Smeralda Resort, Guanacaste, Costa Rica (68
rooms)
"Our initial discussions with Allegro were centered around divesting ourselves of only the Puerto Plata property in order to recoup our capital investment," said Robert W. Korba, president of Sammons Travel and Resorts, Inc.
"However, as our discussions progressed, it became clear that Allegro had the marketing strength and expertise to grow the Jack Tar brand," he added.
Korba said that Allegro is one of the industry's "biggest success stories of the 90's."
"Allegro's expertise in the all-inclusive market and strong worldwide distribution network will be key elements in the growth of Jack Tar resorts," he said.
Del Pino said that the acquisition is expected to be completed in 90 days and significantly strengthens Allegro's position in the all-inclusive category, and hospitality industry, overall.
"This is another step towards meeting our long-term growth plans to consolidate the best brands in the all-inclusive market and have 20,000 rooms under operation by the year 2000," added del Pino.
Headquartered in Santo Domingo, Dominican Republic, Allegro Resorts, currently operates 29 resorts with a total room inventory of more than 7,000. The purchase of Jack Tar Village Resorts will boost Allegro's inventory to 35 properties and 8,776 rooms.
Allegro Resorts was formed July 1993 through a merger of two existing hotel companies: Caribbean Villages Clubs & Resorts in the Dominican Republic, and Diamond Hotels and Resorts in Dallas, Texas. Allegro Resorts currently operates marketing and sales offices in Europe, the United States, the Caribbean and South America.
The first all-inclusive Jack Tar Village resort opened in 1980 in Puerto Plata, Dominican Republic. Throughout the following years, Jack Tar Village Resorts opened additional all-inclusive resorts in Jamaica, Grand Bahama Island, St. Kitts and Mexico, and last year entered Costa Rica.
All Allegro Resorts vacations include unlimited meals, snacks, alcoholic beverages, soft drinks, juices, nightly entertainment, Manager's cocktail party, non-motorized watersports, beginners' scuba clinics, taxes and gratuities.
For more information on any of Allegro Resorts' all-inclusive vacation packages, please call (800) 858-2258 in the United States and Canada, 52-5-208-1223 in Mexico and in Europe, 49-61-72-6-78-70. All others can call (305) 460-8961 or visit Allegro*s website at www.allegroresorts.com.
