NASSAU, BAHAMAS – Despite Prime Minister Philip Davis’ recent comments suggesting that negotiations for the sale of the Grand Lucayan Resort are nearing completion, sources indicate that the deal may not be as finalized as it seems, with funding still potentially an issue.
Sources tell Eyewitness News that the plan originally pitched to the government as part of a LIV Golf and casino development has largely fallen off the radar following Greg Norman’s departure as LIV Golf CEO in December. Since then, the proposed plans appear to have been significantly scaled back, with no substantial updates coming from the government or potential buyers.
Sources suggest that U.S.-based developer Concord Wilshire (CW), rumored to be the proposed purchaser of the Grand Lucayan, has pitched a new, more modest vision for the resort, with just 400 rooms. However, the funding for this revised project has yet to materialize sources claim.
At the recent Progressive Young Liberals (PYL) Conclave in Grand Bahama, Prime Minister Davis confirmed that talks for both the resort’s reopening and the redevelopment of the Grand Bahama International Airport are still ongoing. However, Davis remained tight-lipped on specifics, stating that the government is negotiating both the airport and the hotel in tandem, taking a “holistic approach.”
While he emphasized that negotiations were progressing, no concrete details about a potential buyer have been shared.
The delay is stirring up speculation and frustration, especially after earlier setbacks.
In May 2022, the government announced a deal to sell the Grand Lucayan to Electra America Hospitality Group for $100 million, but that deal ultimately collapsed, forcing the government back into negotiations. Since then, progress has been slow, and many are left wondering if this new round of talks will lead to a sale.
In November 2022, Electra America Hospitality Group revealed that it had faced difficulties securing development financing at terms that would allow it to fully execute its business plan.
Founded in 1992, CW is known for large-scale residential, resort, and mixed-use projects, with over $10 billion in assets developed and acquired. While CW is regarded as a serious player in the U.S. real estate market, the government has yet to confirm it as a potential buyer.
The Opposition continues to criticize the delays. Michael Pintard, Leader of the Free National Movement (FNM), recently voiced his frustrations on social media, pointing to the lack of tangible progress.
“The public has been waiting for over a thousand days, and this government still has nothing concrete to show,” Pintard stated. “We’re tired of waiting for this administration to deliver on their promises.”
Pintard also contrasted the timeline of the then-Minnis Admistration efforts in 2018 to purchase and secure a deal for the resort—amid Hurricane Dorian’s devastation and the global pandemic—and the PLP’s approach since taking office.
In 2019, the FNM government signed a letter of intent with Royal Caribbean Cruises Ltd. (RCL) and the ITM Group for the purchase of the resort for $65 million and the redevelopment of the Freeport Harbour.
“After canceling the negotiated deal, (the Davis Administration) made a spectacle of a new agreement in May 2022, only for the public to watch it crumble in plain sight,” Pintard added, referring to the ill-fated efforts with Electra America Hospitality Group.
Loading ...
