Curious: Why did Temptations/Desire Cabo close?

Just curious. We are planning our trip (probably Desire) and a resort in Cabo would be so much more convenient. No gripe, just curious.

Thanks.

 

I believe the property was bought and the hotel was reopened as a family resort. We were there when it was Temptation Cabo and loved it.

 

We loved the Cabos location. With 38-million folks in California alone you would think with 2-3hr direct flights from SFO, LAX & SAN the resort would have been full. At 151-rooms it was a big resort for Desire to fill and the economic downturn of 2008-2012 took its toll.

We loved the climate, hot days & cool nights plus super low humidity. We went in April 2012 and the resort was 100% sold out so it had its following. We liked the smaller resort feel with the smaller crowd.

The west coast vibe of the people was a huge plus for us too and the resort seemed much more upscale than the Cancun location. Way better food, staff was top notch, and we could get rainbow shots!

The problem was the 6 or 8 story family resort that was built directly on the property line and overlooked the pool & hot-tub. They attempted to build a privacy fence but that was pointless.

Lots of folks have asked Original Resorts for another West Coast location of some sorts but all the money is going into the new TTR build so we're not hopeful -

 

Steve has pretty much the right answer.

FYI - they(Original Resorts) never owned that property but had a 5 yr lease to operate that location with an option to lease for another 5 yrs or to outright purchase the location.

Original Resorts first tried the Desire formula - couldn't make it profitable in the first two years...

Then they switched to the lower cost Temptation formula with mixed in higher priced Desire weekends for special times like July 4th, etc - couldn't make it profitable in the next two years...

Finally they switched back to the Desire formula with prices a bit higher than Temptation but lower than the east cost Desire location. Still not profitable

After all of that and five years after they first opened, it was a simple business decision - not enough "heads in beds" week over week to make that location profitable.

They didn't sell it, they just exercised their option not to renew or purchase and walked away.

From what I'm aware of, the expansion of the nearby resort being so close to their location wasn't a factor in them not renewing or purchasing - it just came down to them not making enough money to justify keeping it open.

I seriously doubt they would try another west coast location anytime in the near future since the entire infrastructure of Original Resorts is on the east coast. Starting and running something on the west cost again(like they did the first time) is a huge added cost compared to doing anything near their base of operations. It would be like Steve trying to running a Boobs Cruise out of the marina near to the two Desire resorts to get more business - nudge, nudge, wink, wink - lol

 

Seems to me, Thought I was told that OR was only leaseing the property and couldn't make the improvements to the resort they wanted.
They played with the concept to make the place fit, but in the end they didn't re-new the lease and explored other options.
Last I heard they have put Cabo on the extreme back burner

 

Sorry CWL
You must've posted while I was composing
If I'd known I should've left it to an expert like you

 

We were there the year before it closed. It was much tamer than cancun, but I loved it.
My wife is a beach person and loves to tan, so wasn't so much her resort. We had a black flag 5 out of 7 days and still great weather.

 

Great memories there great beaches , more ''Old Mexico feel""


I even worked there for 10 minutes

 

Well then maybe you are the reason.
When management saw the likes of YOU working there, they figured workforce pool was slim pickens, and decided to close up shop