Temptation Resort can't compete in the 5 star market even with upgrade

as confident as they were with the Cabo resort ?

 

I already wrote my own "big opinion" on Steve's Rooms & Pricing thread, so I'll make this one shorter.

I think everything will be OK.

And... just maybe... we'll be able to get rid of the groups of idiotic 20-something packs of single guys that show up every once in a while to piss everyone else off. Ha! Boo-Yah! Bam!

Sorry, got a bit excited when I thought about that. Nothing is more of a buzz-kill than some 23 year old idiot trying to finger-bang your lady against her will on the dance floor and when you hoist him over head in the Ultimate Warrior Gorilla Press and act as if you are going to throw him out of Patyo's literally, it's YOU that gets in trouble.

I mean, I wasn't actually going to kill the guy, just scare him a bit. Maybe just hurt him a little... or his own good... we all need life lessons, right... that's right sure we do. *grumbling walk-off*

 

You are describing our first trip. 20+ college age single males in a pack. Walk off for some second to get drinks and they make their move. She was very uncomfortable with it. I mostly wanted to laugh except it was making her keep a top on the whole time

 

I almost feel they've put that vibe out shortly after they changed the name to Temptations years ago. It really comes across as more of a very risky/sexually charged resort and quite upscale. I'd go as far as saying in a round about way its targeted to "lifestyle" people.

I've been going there since Blue Bay Village days and seen all the changes through the years and when I look at the Tempations marketing since the name change I sure won't explain the resort like that to anyone asking about it(I do know why they do it though). I've had to correct a few people I've recommend going to the resort over the years. They'd look at the website and were almost immediately turned off. I then explain to them what its like more or less and they go and come back really enjoying the place and are glad they didn't let there first reaction to their website turn them away.

I like how Jamie has explained it through the years.....more or less a frat party for adults.

I guess what I'm trying to say in a nutshell is I'd take the marketing of the resort with a grain salt and surely won't draw any definitive conclusions from it.

Here is to hoping the party continues :lotsofmichaelfs:

 

******deleted******

I have zero idea on what's going on at this point!

 

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I join with you and Lady on that opinion now. We "thought" we were on the inside with some knowledge, but just heard back from some other folks who are all comparing notes by PM and we're all over the page, and all heard our info in the past 60 days, some within the past week! Stuff literally all over the board. Not this board, all over the metaphorical board, as in -- we don't know shit! Ha!

 

agree this remodel is a big mistake see everyone at GP in April 2017

 

I highly doubt they have the retained earnings to pay for a facility that appears that it will cost 10s of millions of dollars and at least 1 year of opportunity costs.

If they have 10s of millions in cash, one has to calculate the net present value against competing assets to determine if the investment is worthwhile. This makes intuitive sense since you could take 10s of millions in cash and place it in a simple SP500 Vanguard fund without having to do much vs putting the money into a hotel renovation.

Therefore, with a discount rate of 6%, you can easily setup an excel spreadsheet to determine the increased revenue needs to make the endeavor profitable.

I promise the revenue increase on 10s of millions of dollars with a 6% discount rate (compared to a SP500 fund for instance) for the NPV would be very high over an extended period of time to make the investment worthwhile.

That is why I am skeptical about the small price increase.

However, if 2/3s of the rooms only increase by 50 dollars per night, everything would be great from a customer standpoint. I would be VERY HAPPY with the changes at that price point!

I just don't see how that would work financially when you determine valuations through any normal models. Maybe there are assumptions in Mexico that make it much cheaper for some reason?

Either way, I welcome a small increase in price on the vast majority of rooms and look forward to it in the future with such a renovation!

 

I admit it...I am sad Glad we were able to be there this year in April. So long TTR it was nice!!!


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Im actually looking forward to the new place on two conditions:

1) Prices stay similar for the vast majority of rooms (10-15% rise is fine)
2) Same party type of people remain there with the same type of atmosphere

Should become better after the upgrade if those happen.