Conroe Resort Utilities


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Conroe Resort Utilities is a small, private water utility company based in Conroe, Texas. Business is steady, with government regulations ensuring that revenues will never drop below a certain point, and also preventing any competitors from coming on to the scene. And yet, due to a sequence of unforeseen circumstances, the majority owners of the business are willing to sell their shares at below market pricing.

Simply put, this is a unique opportunity to enjoy a return on investment that is as close to guaranteed as it gets.

Ra'anan Ben-Zur -- known as Ronnie to most -- is a highly successful real estate developer, with a focus on hotels. In his 20 years experience he is responsible for extensive renovations of a wide range of hotels all over the country and even overseas.

These projects include:


$7MM renovation of a Radisson hotel in NYC and rebranding as a DoubleTree, resulting in an unsolicited sale and significant profits

 


Sale of a 100-room Hampton Inn for $150,000 per room -- the highest price ever achieved for a Florida panhandle beach front hotel

 


Renovation of a Radisson in Ft. Walton Beach, increasing perceived value by more than 100% (or between $25-55 million)

 

With these successes under his belt, Ronnie tackled his biggest undertaking yet: transforming Del Lago on Lake Conroe. Through a partnership with a hedge fund, the property -- as well as the adjoining utility company -- was purchased in an enormous investment. After renovations, with a 170-acre golf course, spa and conference center among the new amenities, La Torretta was slated to become a leading tourist destination in Texas. Renovations were completed on budget and ahead of schedule, and the beautiful resort opened in 2009 -- right as the economy took a nose dive. The hotel was foreclosed upon, and is now owned by the bank.

Since then, the resort has made a recovery, and sees substantial revenues each season. Rated as a Four Diamond resort by AAA, the hotel restaurant, Chez Roux, was declared the best French restaurant in Texas by the Houston Chronicle, and was recently chosen as the best resort in Texas by the Conde Nast Readers' Choice Awards.

However, now that the bank owns and operates the hotel, the hedge fund now wants to move on to other projects, and the Utility is the only remaining asset from this deal. Despite being an operational, profitable, steady business, it has little value to the majority owners. As such, they are willing to sell it well below market value to Ronnie, who has 10% ownership of the Utility.

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