Govt to Sell Grand Lucayan Resort at a loss after investing 13+ Million in Operations

Lucayan Renewal Holdings Ltd. signed a letter of intent (LOI) with Royal Caribbean Cruises and the ITM Group today for the purchase of the Grand Lucayan resort on Grand Bahama for $65 million and the redevelopment of the Freeport Harbour, the government said.

“The proposed joint-venture project between RCL/ITM will include the redevelopment of the Grand Lucayan resort into a world class destination, featuring water-based family entertainment, with dining, gaming and entertainment options, and five-star hotel accommodations,” the Office of the Prime Minister, Grand Bahama said in a statement.

The Grand Lucayan Resort closed its doors on October 2016 for repairs after it suffered damage from Hurricane Matthew. During this time almost 1,000 people lost their jobs on the struggling island. On November 2016, only the 196-room Lighthouse Pointe was able to reopened.

August 2018, the PRIME Minister Dr Hubert Minnis announced that the government will be acquiring the hotel for $65 Million. He insisted that the government’s purchase of the Grand Lucayan Resort was essential to save the Grand Bahama economy. Notwithstanding his own views, and public criticism, on the government’s involvement in the hotel business, Dr Minnis said purchasing the hotel was necessary.

As of now, the government have pumped 13+ Million of the taxpayers money into the hotel’s daily operations. The government is also still locked in voluntary separation packages (VSEP) negotiations with Trade Union Congress (TUC) President Obie Ferguson. According to Mr. Fergusion, “he remains confident the government will honour its commitment to those who applied for VSEP payouts.”

Once the VSEP negotiations are completed we can expect the 13+ Million investment to increase between 16-18 Million with the projected total investment ranging between $78-85 Million.

Please note that this figure does not take into account any salaries or expenses accrued by Michael Scott and team. This overpayment and overall loss to the Bahamian taxpayer takes us down memory lane with the fire sale of BTC and other assets.

More details to come once the LOI is tabled into parliament

Post Views: 1,909