The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Baha Mar yesterday forecast “a mixed bag for 2013” at its two existing resorts, predicting 4 per cent occupancy growth at the Sheraton but a “deterioration” at the Wyndham sparked - at least in part - by a 25-30 per cent room inventory drop.

Robert Sands, the resort developer/owners’ senior vice-president of governmental and external affairs, said it was pushing to avoid “losing the type of money we have in the recent past” with the Wyndham, adding that reaching ‘break even’ would be “a positive experience for us”.

“I think we need to look at it as two separate business entities - the Sheraton and the Wyndham,” Mr Sands told Tribune Business. “We are forecasting year-over-year growth of 4 per cent at the Sheraton in occupancy, and the room rates to be about flat to last year.

“We expect very conservative and cautious, continued growth for 2013 at the Sheraton. Business continues to go in the right direction at that hotel.”

But he added: “We remain extremely challenged at the Wyndham, and don’t see any growth year-over-year. We see business deteriorating because of a number of factors, with room inventory being down over last year.

“We’re down in terms of rooms available by about 25-30 per cent going forward compared to last year.”

Part of that reduction has to do with the demolition of two towers at the Wyndham to make room for the construction of the new $2.6 billion Baha Mar resort campus at Cable Beach.

Mr Sands acknowledged that the impact of construction work on the Wyndham guest experience continued to be an issue, while “the ability to deliver in terms of service delivery is far below our expectations.

“This is also compounding a negative business environment,” he told Tribune Business. “All these conditions, business factors are impacting the Wyndham at this point in time. It’s a mixed bag for 2013.”

Baha Mar is treating its three current operating businesses - the Sheraton, Wyndham and Crystal Palace Casino - as each responsible for their own bottom lines.

“Going forward, we continue to work very hard to get the Wyndham to a point where we do not lose the type of money we have in the recent past,” Mr Sands told Tribune Business. “Break even would be a positive experience for us.”

The Wyndham’s current average daily room rate (ADR) is around $100 per night, and Mr Sands added: “We’d like it to be much higher than where it is.”

Given that casino performance was largely a function of occupancy levels at adjoining hotels, the Baha Mar executive said the Wyndham’s problems meant that the Crystal Palace was “also challenged”.

Baha Mar is having to manage its existing businesses while also focusing on construction of its new four-strong resort campus, which will add a net 2,100 new rooms when it becomes fully operational in December 2014. Four hotels, including a 1,000 room casino resort, and Hyatt, Rosewood and Mondarin-branded properties, are included in the mix.

“We have certainly buffered the Sheraton or protected it as much as possible from the construction,” Mr Sands told Tribune Business.

“It has the enhanced arrival features and all the upgrades we added five years ago. We continue to be aggressive, and it adds value in the marketplace.”