NASSAU, BAHAMAS — The recent announcement that the latest deal to sell the Grand Lucayan Resort has fallen through is yet another ‘setback’ for an island hungry for economic injection, according to Grand Bahama Chamber of Commerce president James Carey.
Carey called for a more ‘definitive’ position on the resort’s future in an interview with Eyewitness News yesterday.
Julian Russell, chairman of the board of Lucayan Renewal Holdings Limited confirmed in a statement on Tuesday night that the Electra America Hospitality Group had advised that it had difficulty securing development financing at terms that would allow it to fully execute the vision outlined in its business plan.
With yet another deadline to finalize the deal approaching, the board ended negotiations with the group.
Russell noted that the Board is currently in active discussions with a well-capitalized entity that has expressed its interest in acquiring the Grand Lucayan Resort.
However, Carey said he was not thoroughly convinced.
“This is a setback to what we hoped would have started an economic upturn in Grand Bahama. The whole process regarding the sale in my view has been clouded in mystery.
“The whole process has been rather lacking in details. While we accept that there are some intimate details in negotiations that cannot be revealed, we have been concerned over the delays, extensions, and protracted negotiations,” said Carey.
“I’m not really satisfied that there is another potential buyer in line. I think they could have been more substantive in the latest announcement and given the Grand Bahama business community and community as a whole some much-needed assurance in the process.”
Carey said there is “disquiet in the air” regarding the recent developments. However, he does not think most residents are surprised.
“…the only thing that’s going to change that is something very definitive,” Carey continued.
The government announced on May 11th that Lucayan Renewal Holdings LTD signed an agreement with Electra American Hospitality Group to buy the Grand Lucayan Hotel for $100m. At the time it was noted that the deal was subject to a due diligence period with closing no later than 120 days.
Back in early August, the Board of Lucayan Renewal Holdings said that the sale of the Grand Lucayan Resort was “progressing steadily and on track for completion”. A release from the board at that time said “we anticipate no other material changes.”
Electra America had committed to providing an estimated $300 million in construction and renovation funding to rebuild the Grand Bahama resort. The construction phase was expected to produce 2,000 jobs, with another 1,000 permanent jobs expected once the resort was fully reopened.
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