By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Baha Mar will demolish the former Crystal Palace resort and casino this summer as it proceeds with expansion plans beyond yesterday's Rosewood hotel opening.
Graeme Davis, pictured, the $4.2bn development's president, told Tribune Business it hoped to "clear the site" by Christmas to make way for family-friendly amenities such as pools and water-based features - ambitions it has harboured since Chow Tai Fook Enterprises (CTFE) was selected as Baha Mar's new owner.
Mr Davis said Baha Mar's first two properties, the Grand Hyatt and SLS, had performed "well above our expectations" through the winter and spring seasons, averaging above 80 per cent occupancy rates during the peak winter period.
With Baha Mar set to hit the 5,000 employee mark it has committed to "by the time we get into 2019", Baha Mar's president indicated the property's performance to-date had given it the confidence to proceed with its growth plans.
Mr Davis added that Baha Mar was looking for Rosewood, its 237-room high-end luxury property, to hit occupancy levels in the 70 per cent range - a benchmark he described as "very achievable".
While Baha Mar and CTFE, the Hong Kong-based conglomerate, had exceeded their $38 million upgrade budget for the Rosewood by $5 million, Mr Davis said the total $43 million investment was expected to generate returns quickly.
He added that Rosewood's arrival, combined with the Ocean Club's rebranding as a Four Seasons property, was expected to "uplift perceptions of Nassau as a luxury destination" - helping to attract high-spending, high-yielding tourists who may never have previously considered the island or wider Bahamas.
"We'll certainly support the project from a marketing perspective, support the project operationally, and see it grow financially," Mr Davis told Tribune Business. "We have some additional restaurants we have to finish; the opening of a steakhouse; the opening of a restaurant by the pier and beach, and demolition of the Crystal Palace to create some additional family amenities, which we will share at a future moment."
Mr Davis said the demolition was planned for completion "before the end of the year", with tear-down of the former resort and casino property to start "by the end of summer". "We hope to have it cleaned up by Christmas time," Baha Mar's president, declining to provide specific details on CTFE's plans.
The demolition will free up prime beachfront land from an aged property that has now outlived its usefulness. The hotel and casino were last used as a training facility for Baha Mar employees, and also as offices/accommodation for China Construction America (CCA), the project's main contractor.
Rosewood's opening yesterday marked Baha Mar's full completion, with the third and final hotel brand having been delayed by a CTFE-financed $43 million upgrade that saw "the majority of the guest rooms completely remodelled" with fresh furniture and fixtures.
Mr Davis said the investment also involved an additional pool experience; a restaurant featuring Mexican-inspired coastal cuisine; and "significant upgrades to public areas across the entire property".
"This is a long-term investment for CTFE," he told Tribune Business of Baha Mar generally. "I think this investment will pay off very quickly. We're expecting strong demand. Once they experience this property, we will see a very quick upturn in business.
"We're excited that Rosewood, combining with Four Seasons, will uplift perceptions of Nassau as a luxury destination." Rosewood's average daily room rates will start in "the high $500s", although Baha Mar's high-end villas go for $18,000 per night.
"I think there'll be very high occupancies," Mr Davis said. "We certainly want to see in the 70 per cents, the overall standard occupancy for this type of property. It's very achievable."
Rosewood will open in stages, with only 58 of its 237 rooms immediately available, as Baha Mar continues with its phase-in strategy to ensure all elements of the visitor experience meet guest expectations.
"The expectations continue to rise because of the many properties and experiences created by Rosewood throughout the globe," Mr Davis told Tribune Business. "It's important Rosewood Baha Mar exceeds these expectations, and builds on the product delivery and experiences that other Rosewoods are creating.
"These are world-class, iconic properties. We look forward to Rosewood Baha Mar becoming one of these iconic properties... We're seeing pent-up demand from Rosewood guests wanting to see this property we have. From what we've seen from the calls, the travel planners working with Rosewood, we're seeing that demand is very strong."
Mr Davis said there was "a tremendous amount of pride from every associate that joins Baha Mar", and added: "We're seeing a cultural transformation in the Bahamas and the Caribbean in terms of pride and passion for hospitality. We are making sure we have an inspirational and motivational culture here at Baha Mar."
The Baha Mar president described the Rosewood opening as "a tremendous day and exciting day for all Bahamians to see Baha Mar come to fruition" and fully open following a 15-year journey from its inception.
Mr Davis paid tribute to the vision of Baha Mar's original developer, Sarkis Izmirlian, and acknowledged the "turbulent times and tumultuous times" encountered in completing the project following the dispute that erupted with his Chinese partners.
"We've been fortunate to take on full ownership of this project, and look forward to more to come," he added.
Comments
John 5 years, 10 months ago
Seeing that Bah Mar has proven to be a cash cow with unlimited potential, Bah Mar should seek to have the dispute between CCA and Sarkis Izmirlian settler. They cannot expect to walk with a $4.3 Billion investment and a man’s lifelong dream for less than peanuts on the dollar. But O, isn’t that hoe Sol Kerzner also lost Atlantis?
Dawes 5 years, 10 months ago
Sarkis didn't invest $4.3 billion, most of that was from the bank which he then was unable to pay back, as such the bank took it. This is also what happened with Sol Kerzner except it was Brookfield who took it (he got into debt with opening his Dubai hotel which unfortunately was opening just as the recession hit). Sarkis and CCA's issues are aside from Sarkis and the bank.
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