The Margaritaville brand has its origins in a popular 1977 song by Jimmy Buffett, but behind its laid-back demeanor is US$1.5 billion in annual sales, about one-third of that hotel-related, and 21 million customers of its restaurants and resorts, vacation homes, over-55 adult communities – and blenders, of course.
What started as a Key West, Florida, restaurant in 1987 has grown to 22 hotel-related projects including vacation clubs, homes and condos totaling more than 11,000 rooms open. There are another 18 under construction (almost 10,000 rooms); nine in pre-construction (2,400-plus rooms); and 20 under LOIs (4,258 rooms).
Margaritaville Vacation Club is part of Wyndham Destinations’ vacation ownership and exchange company and most recently announced its fourth opening in Las Vegas, set for February 2020. Its vacation club site in Nashville, which is integrated into a Margaritaville hotel project, is home to Radio Margaritaville’s Nashville studio, heard worldwide on SiriusXM. John Cohlan, co-founder and CEO of Palm Beach, Florida-based Margarita Holdings, is bullish on this partnership’s future.
Its Latitude Margaritaville is a portfolio of active adult communities developed by, among others, Canada-based master developer Minto Communities. Offering resort-style amenities, Latitude Margaritaville is for people who want to “live their back nine” the Margaritaville way, Cohlan said.
The most recent project announced is with master developer Minto Communities USA and The St. Joe Co. to develop Latitude Margaritaville Watersound in Florida’s Panhandle region, near Panama City Beach. The community is projected to break ground by year-end on the first phase of the project, which is anticipated to include approximately 3,500 homes with supporting sales center, community amenities and infrastructure. The St. Joe’s Bay-Walton Sector Plan is entitled for a total of 170,000 homes. Over time, the big master development in Panama Beach is expected to lead to 150,000 home sales.
The first Latitude Margaritaville opened in Daytona Beach, Florida, a second is now open in the Hilton Head, South Carolina area, and more are planned for some of the nation’s most popular destinations. Minto had another partner in Daytona before bringing in Margaritaville, where Cohlan estimates it sold more than 1,000 homes in the first 18 months — without any models. In total, Cohlan said they are selling about 4,000 homes in Daytona and 3,000 in Hilton Head.
These are license agreements where Margaritaville gets paid on every home sale.
“The whole experience is like summer camp,” Cohlan added, knowing how much it means to the real estate sales pitch. “We will be the Del Webb for baby boomers. I don’t really have to do the programming, but it’s our brand and I understand the opportunity.”
Cohlan projects about 54 properties will be open within three or four years, including an urban resort in New York City, as well as projects in Nashville, Tennessee; Nassau, Bahamas; and Belize. While Buffett and Cohlan own a controlling interest in the firm, it sold 30% almost six years ago to private equity firm The Raine Group.
Margaritaville also has a high-end condominium brand called One Particular Harbor where, for example, the penthouse unit in the Nassau, Bahamas, development is a US$5 million play. It is already selling units at the first Compass property in Anna Maria Sound, where the average selling price is US$800,000.
For a topper, Margaritaville runs F&B and entertainment programming at about 10 cruise ports around Caribbean islands and is doing F&B on Norwegian Cruise Lines. Cohlan said it is considering branding a ship with one of the major cruise lines or do something more boutique in nature. It is also looking at branding higher-end RV parks, having opened its first on at Lake Lanier.