From the recent edition of “Travel Weekly”:
Miraval Group has acquired the Travaasa Austin Resort from Amstar Group and will spend the next two years expanding and redeveloping the 220-acre property into what will become the Miraval Austin.
Miraval will increase the hotel’s room count to 120 from 70, expand the property’s main restaurant and more the double the spa space. Miraval plans to finish the redevelopment in January 2019.
Miraval, which operates its eponymous resort in Tucson, Ariz., earlier this year took over spa operations at Southern California’s Monarch Beach Resort as part of its expansion plans for its Life in Balance Spa brand. Miraval also said this year that it will redevelop the Cranwell Resort in western Massachusetts.
As opponents of the Dumb Growth project to “save” the rotting Gilded Age pile known as Elm Court by building a massive new big box franchise-style hotel have stated from the start: Amstar, the Otto Happel family office real estate portfolio, is not in the hospitality business.
Amstar buys and flips commercial properties. Most of their total return is generated in the exit strategy, also known as “the grave”. We suspect that main investor Otto Happel has decided to exit the “Travaasa wellness” delusion entirely, and that a sale of the Hawaii property will follow soon. Then what happens with Elm Court?
Bamboozled by unrealistic expectations of tax revenues, boards in the towns of Stockbridge and Lenox failed to grasp what was behind the bizarre idea of using a derelict mansion as a fig leaf for a Courtyard By Mariott or Hilton Gardens, or whatever is at the end of the exit ramp when Amstar dumps the property.
Let us hope that opponents of the development scheme prevail in their appeal of the hasty, ill-considered decision to approve a project that sacrifices the legitimate interests of a residential neighborhood to a handful of real estate speculators. Let us also hope that Amstar investor Otto Happel has a closer look at what his managers have been up to and concludes that building a project in a neighborhood overwhelmingly opposed to the idea is just plain bad business.
The purchaser of the Travaasa “flagship” in Austin, Miraval, recently purchased the nearby Cranwell resort, slated for significant expansion during 2017. With massive development also proposed for the former Desisto property across the town boundary in Stockbridge, we ask once again: how is any of this sustainable? Dumb Growth compounds to absurdity and then inevitably collapses.