The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

SuperClubs Breezes owner yesterday said the resort remained committed to a $50-$100 million expansion that could create up to 500 jobs, and was poised to move once Baha Mar’s completion and other key factors fell into place.

John Issa told Tribune Business he was ready to revise expansion plans first drawn up five to six years ago, adding that the Cable Beach-based property might have room for up to 600 additional suites.

Disclosing that the potential acquisition of an adjacent piece of land was another important factor in Breezes’ plans, Mr Issa said it would be “a no brainer” for the resort to proceed if the necessary airlift and tourist demand was in place.

Emphasising that the resort would maintain its “Out Island hotel” feel and avoid overcrowding in any expansion, the Breezes owner added that Baha Mar’s height might allow it to build up rather than out.

Disclosing that SuperClubs Breezes had invested $3 million to-date in upgrading its existing facilities, Mr Issa said the resort’s “trend line is on the up”, with room rates and occupancy levels higher year-over-year.

He added that Breezes had managed to cut its energy consumption levels by 25 per cent as a result of efficiency measures implemented several years ago, and it planned to produce its own irrigated water once construction on the nearby $2.6 billion Baha Mar project was completed.

Reiterating that Breezes had to hold-off on expansion plans first drawn up five-six years ago, due to the road re-routing and “land configuration” changes to facilitate Baha Mar, Mr Issa indicated the general project concept had changed little.

“We had our working drawings done for an expansion of a few hundreds rooms and suites, and new restaurants and other facilities, and moving the tennis courts from the beach side across the road,” Mr Issa said. “We have tennis courts right on the beach, which is a little irresponsible use of good Cable Beach land.

“Now, there’s a piece of adjoining land that may become available as a result [of Baha Mar]. We’re waiting for the valuation. As soon as that is freed up, we will take on the architect and do the plans.”

Emphasising that he was being “conservative” on the project’s likely impact and scope, Mr Issa told Tribune Business: “This is a guesstimate at this timer, but it would be between $50-$100 million, and it would create at least 400-500 jobs.”

The Breezes owner suggested that the resort could add 600 rooms/suites “without overcrowding the site”.

“We don’t want to kill the characteristics of Breezes, which is almost like an Out Island hotel, where you have lawns and trees,” Mr Issa told this newspaper.

“Most hotels in town have paved planters, and we have a garden with pathways. We want to keep that. That way, people can have an Out Island experience in Nassau.”

And he added: “With the height that we have on Cable Beach now, we could go up rather than have a bigger footprint. With Baha Mar being 20-30 floors, it may be that we could go up 10 floors and look modest.”

Mr Issa told Tribune Business that “a lot depends on air service” to Nassau as a determinant of when Breezes will pull the trigger on its expansion, adding that this nation needed to increase airlift.

With demand and airlift expected to pick up as a result of Baha Mar’s $2.6 billion investment, the SuperClubs owner described the situation as “chicken and egg”.

“If the air service follows, the land is done, it will be a no brainer to go ahead,” Mr Issa told Tribune Business.

The Breezes resort has already been the recipient of sustained capital investment, with Mr Issa disclosing that the property has undergone a “major upgrade programme” that “completely retooled” the buffet restaurant in late 2013.

Refurbishments and other improvements to the main lobby, games and entertainment areas are also being completed, while the addition of “another dining option” has taken weekend options for guests from three to four.

Hinting that these choices may soon increase to five, Mr Issa said the almost-$3 million investment to-date had been phased in to ensure staff did not have to be temporarily sent home while construction took place.

“There’s a lot taking place at Breezes, separate and apart from the main expansion,” he added. “The property is doing very well.

“The room rates are higher than last year, and at the moment we’re in the 70 per cents for occupancy. I think the trend line is up. We see positive trends in rates, room rates, even though we need more air service.”

Mr Issa told Tribune Business that the year-over-year room rate increases were in the single digits, although occupancies were sometimes producing greater rises on a month-to-month basis.

The Breezes owner, though, lamented the change that has seen vacation booking windows shorten from “months and months in advance” to “progressively shorter lead times” of a week to just several days.

Recalling his first days in the industry, when hoteliers would simply do their Spring and fall roadshows, then concentrate on running their business for the rest of the year, Mr Issa likened the sector to “a supermarket, where you advertise your weekend special on a Friday”.

“I prefer the old days,” he added. “We find people checking in booked the previous week, over the Internet. People are taking more vacations annually, and shorter ones.”

Mr Issa told Tribune Business that Breezes invested ‘a few million dollars” on energy efficiency several years ago, putting in new chillers, air handling units and controls to reduce air conditioning-related power consumption. Motors and pumps were also changed.

“We’ve had about a 25 per cent drop in consumption, but then the rates went up as soon as we did that,” Mr Issa said.

He added that once the resort took possession of its new water irrigation plant, and produced its own supply, water consumption levels would also be reduced.