Breaking news-Sosua inn, bailee restaurant all for sale-

[Hobby]

I did not starting going to Sosua until 2019.  It was not like I hear it was years before that but it was good for me.  After going there 5-6 times that year alone I was actually thinking of getting a space in Hispaniola Beach or getting a villa in Casa Linda or Residencial Hispaniola.  Then COVID hit and I backed off.  The prices then were very reasonable and I was going to pay cash and rent out the spot when not in town.  With all this inflation the prices have soared for a villa/condo and the quality of things (chicas) around Sosua has gone down.  Luckily I never purchased as things appear bleak now.  I wonder how much they are asking for Sosua Inn...It may be a hard sell but I guess we'll see.

Hobby

[murano2010]

Prices are already dropping for gringos if you consider the current exchange rate.

I take full responsibility for the peso dropping. I had to make a term deposit in Pesos to get a secured DR credit card. Naturally the minute i transferred dollars to pesos the rate changed.

How much money has to be maintained in that account in order to have a DR credit card?     

[TravelYoda]

Without being a part of the business tough to know why, but selling an (assumingly) profitable business in a bad economy is eyebrow raising. Nonstrategic sales and acquisitions I've been a part of were due to liquidation (need for cash or forced by divorce) or speculation on changing policy(+) or environmental report(-). I think either ownership group decided the company has reached peak profitability and the changing landscape/policy would accelerate the normal rate of expected contraction. Or, because of the changing landscape, they can get an American or Chinese company to overpay before the dust settles on what the new Sosua will look.

[lee255]

Hey guys I've checked weather forecast for the sou for 14 days and they are calling for a lot of rainy days for the next 2 weeks. Should I cancel my trip. I'd hate to just be stuck in hotel room.

[TravelYoda]

Prices are already dropping for gringos if you consider the current exchange rate.

I take full responsibility for the peso dropping. I had to make a term deposit in Pesos to get a secured DR credit card. Naturally the minute i transferred dollars to pesos the rate changed.

How much money has to be maintained in that account in order to have a DR credit card?   

A couple years ago, Popular told me they wanted to see 6 months of 10k pesos coming into the account, passport, an employment contract, and copy of US credit report. This was as a non-resident non-citizen.

[PoonTangClan]

Without being a part of the business tough to know why, but selling an (assumingly) profitable business in a bad economy is eyebrow raising. Nonstrategic sales and acquisitions I've been a part of were due to liquidation (need for cash or forced by divorce) or speculation on changing policy(+) or environmental report(-). I think either ownership group decided the company has reached peak profitability and the changing landscape/policy would accelerate the normal rate of expected contraction. Or, because of the changing landscape, they can get an American or Chinese company to overpay before the dust settles on what the new Sosua will look.

I think you might be right. If they can get another foreigner to overpay before an economic downturn and/or regulatory business shift really turns things upside down, they can make off like bandits.

On a separate note, I know Bailee’s was dealing with cash exclusively, if I’m not mistaken, so I wonder if they ever had a serious theft problem? 🤔

[Newyorkny]

Unfortunately I don't think they will ever be able to sell the business, they have to be asking in the millions for it and they only deal with cash, so im sure there hiding most of the money for tax purposes so, it's kinda hard to prove what your true profit margin is when it's not on paper

[TravelYoda]

Without being a part of the business tough to know why, but selling an (assumingly) profitable business in a bad economy is eyebrow raising. Nonstrategic sales and acquisitions I've been a part of were due to liquidation (need for cash or forced by divorce) or speculation on changing policy(+) or environmental report(-). I think either ownership group decided the company has reached peak profitability and the changing landscape/policy would accelerate the normal rate of expected contraction. Or, because of the changing landscape, they can get an American or Chinese company to overpay before the dust settles on what the new Sosua will look.

I think you might be right. If they can get another foreigner to overpay before an economic downturn and/or regulatory business shift really turns things upside down, they can make off like bandits.

On a separate note, I know Bailee’s was dealing with cash exclusively, if I’m not mistaken, so I wonder if they ever had a serious theft problem? 🤔

Serious theft? Who knows, but similar businesses around the world all deal with a certain level of "shrinkage." Stealing cash from you employer is pretty low down and not super common, but getting charged for 2 beers when you had 4 by your favorita? Super common.

[PoonTangClan]

Without being a part of the business tough to know why, but selling an (assumingly) profitable business in a bad economy is eyebrow raising. Nonstrategic sales and acquisitions I've been a part of were due to liquidation (need for cash or forced by divorce) or speculation on changing policy(+) or environmental report(-). I think either ownership group decided the company has reached peak profitability and the changing landscape/policy would accelerate the normal rate of expected contraction. Or, because of the changing landscape, they can get an American or Chinese company to overpay before the dust settles on what the new Sosua will look.

I think you might be right. If they can get another foreigner to overpay before an economic downturn and/or regulatory business shift really turns things upside down, they can make off like bandits.

On a separate note, I know Bailee’s was dealing with cash exclusively, if I’m not mistaken, so I wonder if they ever had a serious theft problem? 🤔

Serious theft? Who knows, but similar businesses around the world all deal with a certain level of "shrinkage." Stealing cash from you employer is pretty low down and not super common, but getting charged for 2 beers when you had 4 by your favorita? Super common.

I would disagree and say that employees stealing from a cash business is probably more common than we think, especially when it comes to a business in DR owned by a foreigner.

In terms of any hypothetical theft at Bailee’s, I’m thinking theft in the form of cash skimming and maybe phantom food orders or something of the sort. Skimming money off of orders over time is tantamount to death by a thousand cuts, so to speak.

After a while, that “thousand cut” skimming is going to take a significant toll on your bottom line at some point.

I’m just throwing this scenario out there as a hypothetical, but who knows? It’s not impossible for theft to seriously harm a business.

[Viva La Vega]

Prices are already dropping for gringos if you consider the current exchange rate.

I take full responsibility for the peso dropping. I had to make a term deposit in Pesos to get a secured DR credit card. Naturally the minute i transferred dollars to pesos the rate changed.

How much money has to be maintained in that account in order to have a DR credit card?   

I am a bit hazy on the details. It was at Scotia. I had to deposit $100,000RD into a certified term deposit (they gave me a certificate!) @4.5% a year. they asked if i wanted 6 months or a year, i am guessing that is just to set the rates as the deposit gets rolled over.

My guess is I will get a $1500-$1850 USD limit card, but she did not say and i did not ask.  Lets see when i go back if it was approved. At some point I am assuming as my credit gets established that the security may not be required.

They only pay interest on peso certified deposits.

[Heathpiff]

I heard the asking selling price is $10 Million Dollars.

[Jeny917]

Why only $10mil?? They should just list for a cool Billion! 🤣😂🤣

[tugboaboat5393]

Inflation is taking its toll everywhere. People just aren’t spending the money they used to spend, because they don’t have it, so businesses and services are feeling the pinch.

When profitability is projected to become an issue, you try to cut your losses to get ahead of it. I’m just speculating here, but I don’t think there’s any other reason for the sale. Anyone that’s been to Sosua during the early part of any week knows that there isn’t a lot of activity going on. It’s essentially crickets. Weekend warriors alone can’t keep those businesses thriving without robust consumer participation from the locals, which just isn’t happening.

how do you think this all effects the chicas, I was thinking about going next month or waiting until february/march. In terms of speculation will we see less women out even during the weekend phase? or less women in general? Will prices lower bc less people will be visiting spending vs higher prices to offset the low customer turn out? Will there be a quality dip in women? (perspective)

Folks its acroos the board !meaning affecting everys ect chicas, my regular chica down there with a day job at a hotel owner reduced her hours no guests, ....... dont forget its the slow season, maybe an up tick in november to march with expats and snow birds   !!!!

[Captainsaveahoe]

I wonder if they are trying to get out because of the Sosua Mafia.  I was there last weekend and I was thinking to myself the haters will be coming.  They have the best hotel in Sosua…the best restaurant in Sosua…and the best club ( looks wise).  The club isn’t giving the casino major competition yet, but it has a lot of potential.  This is going to piss a lot of people off.  And the fact that they are cash only you know they are not paying taxes…someone might try to take them down.

[tugboaboat5393]

maybe kevins family saying time to get the hell out of dodge,, who knows  Hilton, or any the other world wide resort operators swoop in and grab it !