The Grand Lucayan resort.
By KHRISNA RUSSELL
Deputy Chief Reporter
krussell@tribunemedia.net
WHILE a letter of intent has been signed for proposed new owners to take over the Grand Lucayan, there is a long process ahead.
Michael Scott, Lucayan Renewal Holdings chairman said the signing signalled an end to the beginning.
Asked if he saw the LOI’s signing between the government and Royal Caribbean International/Mexican port developer ITM as a success, Mr Scott said: “No, that was what the politicians said.
“If I was asked to speak I would have said that this is not the end, it’s not even the beginning of the end. It’s the end of the beginning, which means we have a long way to go to get it done because we have a 90-day due diligence period.
“Once the contract is signed then we have two months to completion so in total it’s a maximum of five months from now today or yesterday, so by the beginning of the fall season - the beginning of September we will be kicking in.”
“So what you people need to understand with this deal is we did not allow anybody to finance the acquisition of the hotel in exchange for commitments to develop.”
He continued: “The minister of tourism and I insisted that you are going to cash out on the hotel and the back end where concessions or initiatives are we’ll help you with those, but the point is that it is a streamlined planned development over a two year period, the first phase with timelines and milestones of development will be linked against concessions and initiatives and, of course, some other things will be going on.
“You also have the carnival thing and then hopefully we can get some movement on the airport.”
The government signed the LOI with RCL/ITM Wednesday for the purchase of the Grand Lucayan and to redevelop of the Freeport Harbour. The move is seen as the beginning of a turn around for Grand Bahama’s struggling economy.
An initial investment of $195m, which includes $65m for the purchase of the hotel, has been earmarked for the first phase of the development which will take place over a 24-month period. It is estimated that some 2,000 jobs would be created in the first phase.
With the redevelopment of the harbour, it is expected that an additional two million cruise passengers will be brought annually to the island.
The announcement of the hotel sale is one that many in Grand Bahama have been waiting for, more than two-and-a-half years since the resort sustained severe hurricane damage, forcing the closure of two-thirds of the property which significantly affected the island’s tourism sector.
Comments
TalRussell 5 years ago
Yes, yes and yes have respect comrade Michael for being willing step forward no sugar coat challenge the tricky expectation elected and appointed Imperialist red shirts politicians, by the mere signing of no monies exchanged LOI, yes, no..... go asks minster Renward about go nowhere LOI's, yes, no?
FreeportFreddy 5 years ago
No
Well_mudda_take_sic 5 years ago
The terms of the Grand Lucayan deal will be such that hardworking Bahamian taxpayers throughout the Bahamas will have effectively paid the new foreign owners to buy the hotel, and will continue paying the new owners for decades to come. Just wait until the public gets full details of the outrageously generous concessions that had to be granted to the buyer to get the deal done. No doubt there an awful lot of money has already changed hands on a very non-transparent basis for the lucky few, if you catch my drift. It's pretty much business as usual, but on a much grander scale than even Christie would have thought possible. Whenever our government is effectively willing to pay foreign investors to buy something from it, all sorts of bells and whistles should go off. The end seldom justifies the means, especially when the means are driven by the greed of a few corrupt politicians and their equally corrupt cronies. LMAO
TalRussell 5 years ago
Yes, yes and yes ma comrades, before "Free porters" bite into Imperial red shirts cultivated and smartly packaged red meats take over "Free port" by , Cruise Ships owners, they'd better get together double down by starting demand to get straight, no BS real answers to what is about suddenness change about ways cruise ships have been allowed allowed operate in and about we Colony of Out Islands - lest we forget although from way back in years - Cruise ships have been sailing into our ports, and coveting Private Islands into All-Inclusive Island Playgrounds for cruise ships passengers....... yet but only a handful of hardy visible lowest wage jobs are evident, yes, no?
birdiestrachan 5 years ago
The truth is some of what has been reported makes no sense. Why would Caribbean cruise line spend millions of dollars developing a cruise port at Freeport Harbor that does not belong to them, but yes they will allow other cruise ships to use their space. c They will also redevelop the Port Lucaya. which also does not belong to them.
But it is the peoples time so they believe all the untruths.
ashley14 5 years ago
Tal what do you mean. If they buy it, then it’s theirs. Royal Caribbean won’t get screwed they have big money with top notch attorneys. They wouldn’t enter a agreement that wasn’t going to be profitable for them. Believe me Royal Caribbean and Disney are calling the shots. I believe it will be a great opportunity for Bahamians to get well paying jobs, but these companies will demand perfection in what they offer. The island time excuse won’t jive. No more gratuity on the check with a don’t care attitude. That happens the company will be buying the customer dinner. In other words the American way. Here in the States customer service is demanded. Customers have other options and to keep them they are made happy. I love Bahamians but that isn’t the current attitude.
TalRussell 5 years ago
Ma comrade Ashley, why should I be shocked by you're buying into Imperial red shirts "Grand" Lucayan's red meat deal - after all they've even managed hoodwink squeeze "FREE port's" resident "King's Counsel" Freddy to go on Out Island wide apology tour for his previously having blasted Imperial red shirts decision to folk over $65 million PeoplesPublicPurse's loot to buy "Grand' Lucayan Hotel, yes, no?
While "King's Counsel" Freedy may had his coming to Jesus moment over his thinking reds having somehow managed pulled a rabbit out of "FREE port's" Hat - better had he used he wisdom have asked, why in hell would an astute business operator likes Royal Caribbean International/Mexican want folk over $65 million for a millions and millions dollars left Hurricane damage - missing cases opened and unopened rolls toilet paperless and years of suffering financially from lack paying hotel guests.......yes, no - the devil is be found the secret never be transparency revealed to "FREE porters" details, yes, no?
Seems only thing the 5 Grand Bahama land red shirts MP's be missing are their red devil horns, yes, no?
ashley14 5 years ago
Tal what language are you speaking. Makes me think of Alice in Wonderland!
TalRussell 5 years ago
Ma comrade Ashley, you say riddles, I say my giving reason "FREE porters," why they should judge their elected and appointed, chiefly by their lack delivering on so many previous promises - like fake signature OBAN, and the Tech Hub - and to encourage "FREE porters" to put more effort into trying understand the monster of a "riddle" about, what's true intent of the Cruise Company, for promising be forking over $65 million buy a rundown years of paying guests neglect hotel, which falls far below the Buyer's cruise ships accommodation standards, and deal worsened, after if was left $35 million Hurricane damaged unrepaired by its previous owner, and she's also missing hundreds cases unopened and opened rolls toilet papers, yes, no...... not making any this up, yes, no - wasn't this same hotel now needing be demolished that was demolished in its previous life, before it became reincarnated under another former owner, yes, no?
-Demolition Specialist implosion in "FREE port," Bahama land -
https://www.youtube.com/watch?v=msD7b...">https://www.youtube.com/watch?v=msD7b...
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