competitors_report

6.3 Competitors

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Solara Cove
Comparable Assets
Coastal resort trades, and where Solara sits.
CO 01 / 09
Where Solara Sits
A stabilized branded resort at a scale few Baja comparables match
A 90-key branded resort and 40 forward-sold villas on a scarce Baja coast, operated by a named brand, offered at a 7.5% cap the market can underwrite.
01
A named international operator driving ADR, occupancy and residence premiums
02
Forward-sold residences, $95M in gross sales de-risking the project ahead of completion
03
A stabilized 90-key resort worth $85M to an institutional buyer at a 7.5% cap
04
A scarce coastal site with entitlement in the Los Cabos corridor
Yield
Scale and location
Costa Verde Resort
Marea Punta
Las Olas Reserve
Solara Cove
CO 02 / 09
Market Comparable Insight Los Cabos branded-resort assets fall across a range. Marea Punta is a large trophy resort trading at a keen cap, priced for scale not yield. Las Olas Reserve is a boutique ultra-luxury scheme, high $/key but thin scale. Costa Verde is a big-box resort at a wider cap with weaker branded absorption. Solara sits between them, a stabilized 90-key branded resort at a 7.5% cap with $95M of forward-sold villas.
Comparable Assets Marea Punta (120-key branded resort, traded near $1.05M per key at a 6.8% cap), Costa Verde Resort (200 keys, about $820k per key at a 7.8% cap), and Las Olas Reserve (60-key boutique, roughly $1.2M per key at a 6.5% cap)
Adjacent Schemes Unbranded coastal resorts, private villa developments, fractional and residence-club schemes, hotel-brand residences elsewhere in Mexico, and resale second-home stock
Buyer Alternatives Buying an unbranded villa, developing a private site, or holding an existing second home and accepting weaker rental yield and resale liquidity
CO 03 / 09
Comparable 1
Marea Punta A large Los Cabos trophy resort, priced for scale not yield A 120-key branded beach resort in the Los Cabos corridor, traded near $1.05M per key at a 6.8% cap. Strong brand and location, but priced keenly and larger than Solara, with residences above $2.6M.

Profile

A 120-key branded resort at trophy scale
Established operator flag and loyalty base
Branded residences above $2.6M per unit
Prime beachfront in a proven corridor
Mature rental and events program

Strengths

Trophy asset with strong brand recognition
Deep operator distribution and ADR
Proven absorption of branded residences
Prime, supply-constrained beachfront
Priced at a keen 6.8% cap for scale
Comparable resort transaction | Los Cabos, 2024
CO 04 / 09
Comparable 2
Costa Verde Resort A large-format resort at a wider cap, weaker branded absorption A 200-key resort on the Baja coast, trading around $820k per key at a 7.8% cap. Scale and cashflow, but a thinner brand premium and slower branded-residence absorption than Solara.

Profile

A 200-key large-format coastal resort
High room count and event capacity
Mixed branded and unbranded residences
Standard rental and management program
Value-led ADR positioning

Strengths

Scale and diversified room revenue
Established occupancy across seasons
Lower entry price per key
Broad group and leisure demand
Recognised across the Baja market
Comparable resort transaction | Baja California Sur, 2023
CO 05 / 09
Comparable 3
Las Olas Reserve A boutique ultra-luxury scheme, high $/key but thin scale A 60-key boutique resort and residence-club, trading near $1.2M per key at a 6.5% cap, with villas above $3.5M. Strong pricing and cachet, but small scale and limited institutional liquidity.

Profile

A 60-key boutique luxury resort
Ultra-luxury villas above $3.5M
Design-led, low-density residences
Private members and residence club
Spa and wellness adjacencies

Strengths

Strong pricing power and cachet
Very high revenue per key
Loyal high-net-worth clientele
Keen 6.5% cap on scarcity
Distinct, design-led brand identity
Comparable resort transaction | Los Cabos, 2024
CO 06 / 09
Comparable Analysis Benchmark Comparison
Metric Solara Cove Marea Punta Costa Verde Resort Las Olas Reserve
Segment and positioning 90-key branded, mid-scale 120-key trophy resort 200-key large-format 60-key boutique
Operator brand Named international operator Established operator flag Standard operator Boutique operator brand
Exit cap rate 7.5% exit cap 6.8% cap 7.8% cap 6.5% cap
Price per key About $944k per key About $1.05M per key About $820k per key About $1.2M per key
Branded residences 40 villas at $2.375M Villas above $2.6M Mixed, value-led Villas above $3.5M
Forward-sales de-risking $95M forward-sold Mostly sold on completion Slower absorption Small residence pool
CO 07 / 09
Comparable Analysis Solara offers a stabilized 90-key branded resort and 40 forward-sold villas the comparables do not match on balance. Solara sits between the comparables. Marea Punta is a trophy resort priced keenly at a 6.8% cap, Costa Verde is large-format at a wider 7.8% cap with weaker absorption, Las Olas is boutique at a 6.5% cap but thin scale. A named operator, $95M of forward-sold villas and a stabilized $6.37M NOI support a 7.5% cap disposition at $85M.

Key Differentiators

A named international operator driving ADR $620, 60% occupancy and residence premiums
$95M of forward-sold villas, with 20% deposits funding build ahead of completion
A stabilized $6.37M NOI, sold to an institutional buyer at a 7.5% cap for $85M

Positioning Implications

Underwrite a 7.5% cap against comparable Baja trades at 6.5% to 8.0%, with room on the exit
Sit between trophy and boutique comparables on both yield and scale, not at either extreme
Let the operator brand carry ADR and absorption rather than discounting to move stock
CO 08 / 09
Sources

Comparable Sources

Marea Punta Comparable resort transaction | Los Cabos, 2024
Costa Verde Resort Comparable resort transaction | Baja California Sur, 2023
Las Olas Reserve Comparable resort transaction | Los Cabos, 2024

Market Sources

Los Cabos branded-resort trades at 6.5% to 8.0% caps, 2023 to 2024 | market transaction data
Baja California Sur branded-residence absorption and pricing, 2025 | regional market data
Solara Cove appraisal: $85M resort at a 7.5% cap, $95M villa forward-sales | internal
CO 09 / 09