NASSAU, BAHAMAS — Acting Prime Minister Chester Cooper said yesterday that the government is committed to doing what’s right for the island and people of Grand Bahama, expressing that the government is confident it can secure a deal for the sale of the Grand Lucayan resort.
Cooper, who has ministerial responsibility for Tourism, Aviation and Investments told reporters yesterday that the government is “committed to doing what’s right for Grand Bahama and what’s right for the Bahamian people.”
“We had a good deal with Electra America. The vetting and been done by Colliers. They had a vision, they had a plan, there was evidence of funding as seen by Colliers. Electra has consistently asked for more time but we cannot continue to delay and delay. The art of making a deal is knowing when to move on,” Cooper said.
Julian Russell, chairman of Lucayan Renewal Holdings said in a statement Tuesday night that Electra America Hospitality had indicated that shifting global capital markets and related inflationary pressures resulted in higher construction costs and costlier access to credit. This resulted in the company experiencing challenges in securing development financing at terms that would allow it to fully execute the vision outlined in its business plan.
Cooper said yesterday that there are still credible purchasers expressing interest in the resort, with conversations already commenced with an entity said to have “deep pockets”, a vision for the property and a track record of having recently completed notable transactions in the hospitality space.
“In the final analysis, we hope to do what’s in the best interest of Grand Bahama and the Bahamian people. When We have a deal we will make the announcement.
“We are going to make sure we have something definitive to say before we make any announcements. This is a complex deal. We understand what it takes to make this happen. We had a good deal before and we believe we can do a deal for the hotel,” Cooper assured.
He noted that 140 persons are still employed at the resort, with the government having lowered its monthly subvention from $1.5 million to $1 million. Cooper added that the government in the meantime is focused on increasing airlift to the island.
“We understand the frustration of the people of Grand Bahama. We are empathetic. They have had to face Dorian, Covid, and four and a half years of the Minnis administration. We get that.
“I believe the people will understand that we are working for them diligently and we are making progress at the airport. We are increasing airlift, promoting Grand Bahama and taking all the right steps to ensure that we are adding jobs, opportunities and increasing value. We’re going to do the best possible deal for the Bahamian people,” said Cooper.
He also pushed back against suggestions that the sale of the hotel hinges on the redevelopment of the island’s airport. Cooper dismissed some of those critics as “looking for relevance”.
Cooper further stated that the government is committed to creating a world-class airport on Grand Bahama.
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