The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A 550-room Hilton branded resort will form the core of the Grand Lucayan resort’s $700m redevelopment, it was revealed yesterday, amid assertions the project will transform Freeport into a “tourist mecca” to complement “the mega cruise port of the Caribbean”.

Dupuch & Turnquest, the Bahamian law firm that represents Concord Wilshire, the Grand Bahama resort’s purchaser, in a note to clients seen by Tribune Business pledged that - unlike other private destinations reserved exclusively for cruise passengers - the 20-acre beach club to be developed by Mediterranean Shipping Company’s (MSC) cruise arm, as well as the planned resort, will be open to Bahamians and residents as well as other stopover visitors.

This, it added, will “reintroduce Freeport as a new visitor destination”, with MSC possibly retaining the Grand Lucayan’s Breaker’s Cay property and rebuilding it as a 600-room resort separate from the Hilton-branded property that Concord Wilshire will develop itself. While Breaker’s Cay and the Manor House are not included in the initial demolition, the former Reef/Memories property will be torn down.

Dupuch & Turnquest signalled that much of the Grand Lucayan’s redevelopment is planned to occur over the next two years, as this will “parallel” the Grand Bahama International Airport’s transformation to enable the facility to handle the expected uptick in stopover visitors once all the resort’s accommodation options and amenities come on stream.

And, in a message that accompanied the client note, the Bahamian law firm also disclosed that Freeport’s former Xanadu resort property and surrounding land is presently in the process of being sold to another major cruise line for $40m. No timeline was provided for the deal’s closing, but Tribune Business previously reported that the purchaser is Royal Caribbean.

As for the Grand Lucayan, Dupuch & Turnquest’s client note confirmed the forthcoming construction by Concord Wilshire “of a new 550-room Hilton Hotel and new casino on site one and site four” - two of the development zones that the Grand Lucayan has been divided into. And a second, smaller casino will also be developed at the second ‘cruise resort’ location, known as site three, which is not the site that MSC will use.

“More hotel rooms and other suitable family accommodations are being planned,” the law firm added. “MSC has become the owner of the 20-acre parcel (site two) upon which they will build a new beach experience to accommodate one million cruise visitors a year. MSC may keep the hotel presently built on site two (Breakers Cay), which they will rebuild as a new 600-room hotel product, but the old Reef/Memories Resort will be demolished.

“There will be a mega yacht marina constructed to provide berths for 20 such yachts. The difference with the MSC beach experience at Grand Lucayan is that it, together with the casinos and the hotel(s), will be open to the general public and island visitors alike, and the hotel(s) will attract overnight offshore visitors re-introducing Freeport as a new visitor destination area.

“The total resort is expected to represent an investment of over $700m. The new Grand Bahama International Airport (expected within two years) will parallel the major expansion of the Grand Bahama Shipyard and the establishment of the hotel products.”

Dupuch & Turnquest said the Grand Lucayan’s redevelopment will complement the multiple cruise industry investments in Freeport, which apart from Royal Caribbean’s $40m Xanadu purchase and Carnival’s $600m Celebration Key development, now also include MSC’s further $450m investment in a new cruise port in Freeport Harbour at Billy Cay.

“This will have a salutary effect on the real estate development and investment market in Freeport. There will be international shopping and at least 20 new restaurants,” the law firm added of the vision for a redeveloped Grand Lucayan. “Thus, Freeport will take its place as the leading visitor destination and tourist mecca it should be: It is already becoming the leading mega cruise port of the Caribbean.”

Many Grand Bahama businesses and residents, struggling with Grand Lucayan deal fatigue, will likely only believe in these plans when they come to fruition, see tangible construction and demolition activity taking place, and can actually touch and feel what is happening. The Dupuch & Turnquest note did not provide details on the number of construction and full-time jobs that will be created, and the expected economic impact, with previous inquiries to the developer failing to obtain this.

Well-placed sources, speaking on condition of anonymity, previously told Tribune Business that MSC’s involvement should generate confidence that Grand Bahama’s redevelopment is for real this time because it typically carries out whatever it says it is going to do.

The two “cruise resorts” will provide the redeveloped Grand Lucayan with instant critical mass and the guest volume necessary to sustain the property financially until the island stopover tourism market is rebuilt. They added that the deal between MSC and Concord Wilshire will intensify pressure to ensure Grand Bahama International Airport’s redevelopment matches the resort’s pace.

Concord Wilshire had earlier unveiled a masterplan showing that the Grand Lucayan is being divided into four different development zones. One of those zones, known as ‘site two’, is reserved for the MSC Beach Club, while another - ‘site three’ - has been allocated for the second “cruise resort” under the strategy created by Concord Wilshire’s subsidiary, Ancient Waters Bahamas.

Tribune Business, which exclusively revealed the MSC Cruises deal, had previously been informed that the Grand Lucayan’s second cruise-related amenity would be branded by Disney Cruise Line, although possibly operated by a third party on its behalf. Well-placed sources, speaking on condition of anonymity, yesterday said Disney’s involvement is not certain but Concord Wilshire pledged the asset will be operated by a Bahamian firm.

The Miami-based developer, in a statement, said demolition and construction activities for the two cruise line-related properties are set to begin at the same time with both resorts targeted for completion “on a co-ordinated timeline”. And work on the mega yacht marina and casino resort will start “in parallel” with the two “cruise resort” properties.

It added that plans for two other components, the beach resort that will be developed by Ancient Waters Bahamas and the Reef golf course’s redevelopment under the Greg Norman brand, will be released shortly.

As for Royal Caribbean’s pending acquisition of the Xanadau and 28 surrounding acres that includes beachfront, the Central Bank of The Bahamas said last year in its presentation on 2025 first quarter economic developments that the cruise line and its high-end Celebrity Cruises affiliate have received the Government’s permission to proceed with the acquisition of a total 40-acre site that they intend to transform into “recreational and entertainment facilities”.

“Royal Caribbean Cruise Lines - Celebrity Cruises Incorporated obtained approval for the acquisition of 40 acres of privately-owned land for the development of recreational and entertainment facilities. The investment is valued at $348m,” the Central Bank confirmed.

Built in 1968 by US shipping tycoon, D. K. Ludwig, the Xanadu established itself as a venue for the so-called “Rat Pack” - the likes of Frank Sinatra, Sammy Davis Jnr, Cary Grant and Dean Martin - as well as accommodating reclusive billionaire Howard Hughes, who once lived in its 13th storey penthouse.

The 184-room property was acquired by the late Mario Donato in 1987, but it ultimately closed in 2011. The Xanadu was in late 2023 listed for a $25m asking price on Bahama Islands Properties’ website, which says: “The 184 rooms have it all.

“Set on a world class beach, it also boasts a 75-slip marina with incredible potential, and in addition more than 20-plus acres strategically located near downtown and the airport. It is perfect for aggressive rooms and amenities expansion or adding condominiums.” Another realtor, James Sarles Realty, had the resort listed for $35m.