Hagar, already a successful rock musician, first visited the Mexican town of Cabo San Lucas in the early 1980s, before joining Van Halen in July 1985 after the departure of their founding singer, David Lee Roth. Seeking a place for himself and his friends to relax and play music, Hagar, and his long time friend, Marco Monroy, partnered up with fellow Van Halen members Michael Anthony and Edward and Alex Van Halen and opened a large bar, restaurant, and performance space named after the band's 1988 song "Cabo Wabo."