The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Cabinet minister yesterday hailed planned reinvestment in Atlantis by its owner as "welcome news" after it abandoned efforts to sell the Paradise Island-based destination resort.

Dionisio D'Aguilar, minister for tourism and aviation, said there was minimal to no involvement by the government in Brookfield Asset Management's latest effort to exit its now-eight year ownership of arguably The Bahamas' key destination resort.

"Brookfield has always led the process on who they are entertaining to buy it, and there was very little involvement by the Government," Mr D'Aguilar said. "According to the news reports in the paper... they now intend to reinvest in the property. That is welcome news."

Mr D'Aguilar was responding after Atlantis/Brookfield revealed exclusively to Tribune Business, in response to this newspaper's inquiries, that the resort had been pulled off the market.

"We have received a number of offers to purchase Atlantis, but have made a determination not to sell at this time," a spokesperson said.

"Instead, we have decided to make a significant investment in a renovation of Atlantis which will take place over the next three years, and will include room renovations, additional nightlife venues, new restaurants, and other expanded indoor and outdoor activities."

The statement confirmed information reaching Tribune Business from multiple sources that the Atlantis sales process, initiated last year, had come to an end with no preferred bidder or buyer selected, and no suitors left in negotiations with Brookfield Asset Management.

The sales process, which had been run on the $330bn Toronto-headquartered asset manager's behalf by Citibank, was disclosed last July in a report by Bloomberg. That move came after this newspaper revealed in February 2019 that a potential deal with a New York-based real estate investor, Ashkenazy Acquisition Corporation, which was backed by Qatar's sovereign wealth fund, had also fallen through.

Brookfield and Atlantis made no mention of how much will be invested to upgrade and refresh the Atlantis product over the next three years. No explanation or reason was given for why all bids were rejected, and nor were the identities of those behind the offers revealed.

Mr D'Aguilar added that the government's lack of involvement meant he was unable to "opine on the twists and turns that would have taken place to reach what is apparently being stated in the paper" in terms of the sales process coming to an end without a buyer being found.

Responding to increased industrial tensions between the hotel union and Atlantis over the resort's plans to switch from a weekly to bi-weekly staff payroll, the minister added: "That is an internal issue with the employees and the hotel, and I would rather not opine on that. Let that take its course and we will see where that ends up."

Harrison Williams, the Bahamas Hotel, Catering and Allied Workers Union's first vice-president, told Tribune Business yesterday that a "fight" may result over Atlantis management's decision. However, he said no industrial action is planned at this time as negotiations continue.