Beach Point Capital Management and Sparta Capital Management have given Cipriani a $190 million loan to build what the company calls South America’s largest luxury resort. Beach Point operates from Santa Monica while Sparta works out of London. The Italian restaurant company announced the deal June 11, marking its first move into casino operations after nearly a century in the hospitality business.
The money will fund the Cipriani Resort, Residences and Casino Punta Del Este, which Cipriani estimates will cost $500 million when finished. Beach Point manages about $19.3 billion and has funded hotels and casinos before. Michael Haynes, who runs private credit at Beach Point, said his firm was excited to partner with Giuseppe Cipriani and called the company a leading luxury brand.
The casino project will open as Punta del Este tries to attract younger, tech-savvy visitors. Many new casinos accept Bitcoin and other digital currencies, and the trend has reached South America. Some players prefer crypto because it’s faster and more private than credit cards. This has created demand for gambling wallets that work with casino websites. Players can deposit money in minutes instead of waiting days for bank transfers, and they pay lower fees than traditional payment methods.
Cipriani will build on the site where the San Rafael Hotel has stood since 1948. City officials in Punta del Este told the company it must preserve the Tudor-style building. Rafael Viñoly, who died in 2023, drew up plans for the project. Norte Construcciones started construction last year and expects to finish the first section by December 2025. That phase will have 64 hotel rooms, with 120 more rooms planned later. The company also wants to build 68 condos in three towers, with the tallest going up 60 floors.
Cipriani has never run a casino before. The family business built its name on expensive restaurants, private clubs, and hotels in Venice, New York, London, Miami, and Dubai. But the Uruguay project will be different. Besides the casino, the resort will have a private beach club, shops, restaurants, a spa, and meeting rooms. Giuseppe Cipriani said the loan will help his company open in more cities.
Uruguay draws wealthy South Americans who want stable politics and good tax deals. The country charges no wealth or inheritance taxes and gives foreign residents tax breaks on overseas income. Punta del Este has grown fast, adding 41,000 people in the last 12 years to reach 213,000 residents.
Sales started even before construction finished. Someone from Europe paid $17.1 million for one of the penthouses. Most buyers come from Brazil and Argentina, but Canadians are looking at the project too. Cipriani plans to finish everything by 2030, though that depends on how well units sell.
Two law firms worked on the deal. Sidley Austin represented Beach Point while Paul Hastings worked for Cipriani. The loan pays out money as construction hits certain goals instead of all at once. More investment companies are putting money into Latin American hotels and casinos as the region attracts wealthy buyers.
The Punta del Este project marks Cipriani’s largest bet yet on global expansion. Should it be successful, the business intends to build similar casino resorts in other luxury locations worldwide.
