By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A newly-appointed Grand Lucayan director is predicting the Government may have to own the resort for one to two years, suggesting that its exit "won't happen overnight".
Carey Leonard, pictured, a former Grand Bahama Port Authority (GBPA) in-house counsel, told Tribune Business that all stakeholders needed "to take a deep breath" and determine the best strategy for avoiding any "fire sale" of Freeport's anchor resort property to an unqualified buyer.
Emphasising that "stability" for the resort and Grand Bahama's tourism economy was the immediate concern, Mr Leonard said the Government should not find it hard to beat the Grand Lucayan's "abysmal" performance under soon-to-be former owner, Hutchison Whampoa.
"We need to make it clear, and it seems Dionisio [D'Aguilar, minister of tourism] and those recognise it, that we don't want to be in a position where we have a fire sale," he told Tribune Business. "We need to hold on to it, see what needs to be done, and find a thoughtful way out for the Government.
"The Government has been very clear that they don't want to be in the hotel business, but it will take some time. I wouldn't expect it [a sale] to happen overnight. Everyone needs to take a deep breath, see what we can do for advertising, how we bring in airlift - whether we do it ourselves or get airlines to do it for us from particular markets.
"Bahamians cannot expect it to happen overnight. I expect a slow and steady improvement, and Government will try and offload it as soon as they reasonably can. What they've got to do is stabilise the situation. Nobody knew what was going to happen and if Hutchison was going to shut down at the end of the month. Government is not going to find a private buyer quickly."
The sale timeline forecast by Mr Leonard, now a Callenders & Co attorney, is different from the three-six month exit targeted by his chairman, Michael Scott, who will head the same Lucayan Renewal Holdings Board that he has been appointed to.
Lucayan Renewal Holdings is the Government-owned special purpose vehicle (SPV) that will hold and own the Grand Lucayan, with Mr Leonard last week unaware he was in line to be appointed to the Board of the SPV until informed by Tribune Business.
"If the Government does take this on they will probably do a better job marketing it than Hutchison," he told Tribune Business. "I don't know how many people stay at the Grand Lucayan, but I don't think it's a lot. There's roughly the same number of rooms at Pelican Bay, but you see activity there and at Lighthouse Pointe you can't.
"It wouldn't be hard to do a better job than Hutchison; they've been abysmal. Hutchison has control of very major, significant assets that have a major, direct effect on the economy of Grand Bahama and the country as a whole. They have behaved badly, and I don't think anyone would blame the Government for taking a firm stand on it."
Mr Leonard suggested that the Government "see what the other properties have to offer" in terms of the still-closed former Memories and Breaker's Cay resorts at the Grand Lucayan complex. It then needed to "target somebody we think can develop it for a particular reason".
"It's going to be interesting to see who we attract and for what purpose," he added. "If the Government can do a good job on Lighthouse Pointe, with Pelican Bay it will have 400 rooms. That will fuel growth because neither one is all-inclusive. If we have good occupancy at Lighthouse Pointe you'll see a vast improvement."
Comments
birdiestrachan 5 years, 8 months ago
These FNM Fellows all over the place. May I suggest they all sit down and get their lies together. Mr.' Scott, doc. D'Aguilar, Mr.> Leonard all; have different tales to tell. No
plans, No vision just empty vessels making foolish noises. ,
ThisIsOurs 5 years, 8 months ago
""We need to make it clear, and it seems Dionisio [D'Aguilar, minister of tourism] and those recognise it, that we don't want to be in a position where we have a fire sale," he told Tribune Business. "We need to hold on to it, see what needs to be done, and find a thoughtful way out for the Government."
"The Government has been very clear that they don't want to be in the hotel business, but it will take some time. I wouldn't expect it [a sale] to happen overnight. Everyone needs to take a deep breath, see what we can do for advertising, how we bring in airlift - whether we do it ourselves or get airlines to do it for us from particular markets."
This thing like conch salad. They saying a whole bunch of things that sound good to "somebody". Now this one talking about paying for marketing. They specifically said they weren't going to pay for marketing. Leonard Sands talking about job creation. DAguilar talking about renovation, all the things they said they wouldn't do.
I have the perfect song for this drama. Here we go again
TalRussell 5 years, 8 months ago
We need upfront full disclosures as to the terms and conditions along with amounts monies, bonuses to be paid out to all comrade Grand Lucayan board members...... along with what, if any, avoiding conflict agreements. Full nothing kept hidden disclosure means exactly that... full PeoplePublic, no smoke and mirrors disclosures. Which crown minister will the Grand Lucayan report and be answerable directly to... done smacks it not being tourism crown minister Dionisio James... maybe AG Carl Wilshire or direct PMO?
proudloudandfnm 5 years, 8 months ago
As it is right now therr are no plans to renovate or re-open. They never said they would renovate Memories they said they'd consider it. But they also said negotiations for Freeport continue with Wynn after he got approval for Nassau. This FNM lies. That's pretty much all they do. Lie and raise taxes. They are utterly useless and dishonest. We really are in trouble if the PLP and the FNM are our only options. The Bahamas doesn't stand a chance....
BahamaPundit 5 years, 8 months ago
What a lazy way to government FNM!!! Buy buy buy. Just plain lazy. Passing legislation is FREE. Instead of buying things for your cronies to plunder and leave the country broke, pass legislation that allows the private sector to expand and build the economy. Such a no brainer.!
DWW 5 years, 8 months ago
So what's next? They going to buy treasure cay and then French leave in gov. Harb? Why not also pick up Stella Maris and Greenwood while we are at it. And club med in San sal. Such utter BS. If gov't going to buy out failing businesses to prop up the country why not nationalise everything. Hell let's go full commy what ya say? In business you have to spend money to make money. In gov't you have to spend money to waste money. 20% vat here we go.
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