The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A swift conclusion to the Grand Lucayan resort’s sales process is critical to maintaining travel industry confidence in Grand Bahama, a senior tourism executive believes.

David Johnson, senior director of business development for the Sunwing Travel Group, and a former Ministry of Tourism director-general, said the Government needed to use its influence in ensuring the right purchaser was selected.

Addressing the 18th annual Grand Bahama Business Outlook conference last week, he said: “A swift resolution to the Lucayan strip ownership is necessary to maintain travel trade confidence in this destination moving forward. We have to make this transition quickly, or it can disable the growth that we know we are capable of generating going forward.”

Mr Johnson added: “We are at this juncture today where the die for Grand Bahama tourism will be cast by the outcome for the announced auction of its primary tourism asset that is the Grand Lucayan.

“If the approved bidder is a developer who will recruit first rate operators, and will invest to raise the product and service, Grand Bahama will resume its growth in not only head count but also financial measurements or profits. When that occurs, the growth will spill to the east and western shoulders of Grand Bahama.”

Hutchison Whampoa and its real estate affiliate, Cheung Kong Property Holdings, have appointed HVS Capital Corporation as adviser and manager for the sale of the 409-acre Grand Lucayan resort via a sealed bid auction on June 10, 2016.

While Hutchison Whampoa’s preference is to sell the Grand Lucayan complex as a single transaction, bids for individual hotel, casino and other assets will be considered. It will also provide financing to “appropriate bidders” to assist any purchase.

The Grand Lucayan Resort complex has a total of 1,271 guest rooms. The resort complex includes four hotel elements: the 10-storey, 528-room Breaker’s Cay tower; 198-room Lighthouse Pointe, newly renovated as all-inclusive; 23 Lanai Suites - all with 12 food and beverage outlets and three swimming pools; plus the 522-room Memories Beach Resort (presently leased to a third-party operator).

Other amenities include a 40,000 square feet conference centre, including a 15,000 square feet ballroom; 16 breakout rooms; 50,000 square feet of outdoor function space; a 23,375 square feet casino with 25 gaming tables and 195 slot machines; a 25,000 square foot destination spa and fitness centre; two golf courses; four multi-surfaced tennis courts and 15,000 square feet of retail space.