Beneficial Holdings (PINKSHEETS: BFHJ), a gaming and hospitality management company, previously announced that it entered into negotiations to build a tourist hotel and gaming parlor in El Crucero, Nicaragua.
El Crucero, although a popular tourist area due to its magnificent views, cool temperatures, and other attractions, does not have a modern hotel or a casino. Beneficial Holdings believes that the project will fill the void in the development of tourism in the area.
The project was slated to be a joint venture between a Beneficial subsidiary and a Nicaraguan property developer with rights to the land.
On May 18, 2010, Beneficial and the developer reached agreed upon terms and entered into a letter of intent. "Now the attorneys will put the letter of intent into a contract form and we will proceed with the development of the land," said Alex Papic, Vice President of Beneficial Holdings.
Because of the property's altitude, the operational cost of the hotel will be very low because neither heating nor full time use of air conditioners will be needed. "It's in an area where, on a warmer day, you might run an air conditioner for an hour or two at the most. The largest expense for a hotel in Nicaragua is electrical costs from running air conditioners," Papic explained.
The hotel will be Beneficial Holdings' second hospitality property. In addition, the Company operates two gaming establishments.
Logos, product and company names mentioned are the property of their respective owners.
