Michael Dell Paid $875 Million For The Underperforming Boca Raton Resort And Club

The Dell-owned private equity firm used the 1,047-room resort, which operates under the Waldorf Astoria banner, and the Premier Club as collateral, and intends to invest another $75 million in renovations, amenity package upgrades and activating public spaces.

Following a site visit in May, Fitch analysts rated the Boca Raton Resort & Club A - -. However, the ratings agency found that the iconic hotel, originally built in 1926, doesn't measure up against other competing luxury resorts. In comparing the Boca Raton Resort & Club to The Breakers in Palm Beach, PGA National in Palm Beach Gardens, Eau Palm Beach in Manalapan and Trump National Doral Miami, among five other resorts, Fitch found that the current daily rate of $311 of Dell's latest acquisition averages about $365 less than its rivals.

The Boca Raton Resort & Club's revenue per available room, a hotel industry standard metric, was $197 compared to $250 at competing hotels. Food and beverage revenue, at $83 million, topped the $71 million in room revenue in 2018, Fitch reported.

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