The Tribune

By NATARIO McKENZIE


Tribune Business Reporter

nmckenzie@tribunemedia.net

A senior Baha Mar executive said yesterday that the Morgans Hotel Group was still a part of the $2.6 billiondevelopment’s brand plans, adding: “There has been no change in that position to-date”.
 Robert Sands, Baha Mar’s senior vice-president of government and external affairs, moved to allay concerns over the operator’s move to terminate its 20-year hotel management agreement (HMA).

Mr Sands said: “Morgans is still part of the Baha Mar brand. There has been no change in that position to-date.”

Baha Mar and Morgans Hotel Group entered into the HMA on July 31, 2011, for the latter to develop and operate the 300-room ‘Mondrian at Baha Mar’ hotel.

Tribune Business reported last month how their dispute relates to Baha Mar’s failure to allegedly fulfill certain conditions contained in the contract, particularly the requirement that it obtain a “non-disturbance agreement” from its financiers within six months of the deal’s signing.

Such an agreement, which Baha Mar had to obtain from the China Export-Import Bank, its multi-billion dollar lender, would have allowed Morgans to continue uninterrupted management of the Mondrian even if the developer defaulted and the Chinese institution had to foreclose.

Mr Sands said Baha Mar was pushing towards its planned December 8 opening. “We are at 80 per cent complete. We are doing finishing touches to the property, a lot of civil works. We’re working from the inside of the hotel out,” said Mr Sands.

He added that Baha Mar was “very encouraged” by the level of group bookings to-date, noting that it plans to “go live” with its leisure bookings on July 1.

Speaking on negotiations between Baha Mar and the Government over money owed to the developer for building one mile of the re-routed West Bay Street, Mr Sands said: “We have been paid more than half the amount outstanding but we haven’t been paid any amount for over 12 months.”

Under the agreement the Government has with Baha Mar, it is obligated to pay $45 million plus $2.8 million if the cost of the re-configuration of West Bay Street exceeded $70 million. If it was less than that, the Government only has to pay 50 per cent.

Mr Sands said Baha Mar has bid in excess of $600 million to Bahamian contractors. “I can confirm that we have awarded in excess of over $400 million so we have far exceed our commitment to the Government,” he added.

Mr Sands said Baha Mar was satisfied that it had sufficient airlift in place for the resort opening in December.

“The team of both the Ministry of Tourism, the promotion boards, along with ourselves, have negotiated excellent arrangements with carriers not only for increased connectivity, capacity, frequency but also some new airlift out of new gateways. We are very encouraged and satisfied that airlift will be in place to satisfy the demand of Baha Mar when we open,” said Mr Sands.