The government and Bahamas Port Investments Ltd signed a Heads of Agreement for the purchase of the Grand Lucayan on Monday. Seated at left are Royal Caribbean International President and CEO Michel Bayley and CEO of ITM Mauricio Hamui, representing the Developer; Secretary to the Cabinet Camille Johnson (second right) and Director of Investments Candia Ferguson. Standing from left: Minister Iram Lewis, Minister of State Kwasi Thompson, Deputy Prime Minister Peter Turnquest, Prime Minister Hubert Minnis, and Minister Dionisio D'Aguilar. (BIS Photo/Yontalay Bowe)
By DENISE MAYCOCK
Tribune Freeport Reporter
dmaycock@tribunemedia.net
THE purchase deal for the Grand Lucayan resort was signed on Monday, setting plans in motion for a $300m investment development by the Royal Caribbean International and ITM Group to transform Grand Bahama and revive its beleaguered economy.
The signing of the sales and heads of agreement was held on the resort’s great lawn on the Lucayan Beach, which is poised to be a “world premier tourist destination in the region”.
Through this mega-investment, some 3,000 direct and indirect jobs would be created for Bahamians, according to Prime Minister Dr Hubert Minnis.
Signing on behalf of the government was Cabinet secretary, Camille Johnson. The purchaser is Holistica Destinations, a joint venture formed between RCI and the ITM Group.
Michael Bayley, president and CEO of RCI; Mauricio Hamui, CEO of ITM; and Robert Shamosh, CEO of Holistica Destinations also signed the agreement.
The Grand Bahama project is Holistica’s largest development. It comprises two major components – the Lucayan resort property and Freeport Harbour.
Mr Shamosh revealed that the hotel property will be transformed into a world-class destination, with water-based entertainment, including a massive water and adventure theme park.
Other amenities include a shopping village, that will feature a variety of activities and family entertainment, and a 40,000 sq ft convention centre.
The second component involves the redevelopment of the harbour into a new cruise facility, with three new additional berths capable of berthing the largest cruise ships in the world.
There will be a harbour village, comprising shopping outlets, restaurants, beach and wellness areas, and a multi-modern transportation hub, with infrastructure for water ferries and ground transportation.
Mr Shamosh believes that Grand Bahama will offer “unparalleled experience” in the region, attracting more cruise and land-tourism investments.
He said: “This project is about renewal and revival in the face of a natural disaster. This is an opportunity for a new start. Holistica and the government are betting on this project to be the tip of the arrow that will not only be the development of cruise tourism but also boost many investments in Grand Bahama.”
For his part, Dr Minnis said the signing marks a “new day” for Grand Bahama after previously failed developments.
“This $300 million investment will go a long way in revitalising Grand Bahama, with a myriad of economic and employment opportunities for more Grand Bahamians,” he said.
“After many false dawns, there is an exciting new horizon for our second-most populous island and economic centre.
“Grand Bahama is at the beginning of a new day. This is even more critical in light of a series of hurricanes over the years, especially the recent destruction and in some areas of the devastation caused by Hurricane Dorian,’ said Dr Minnis.
He believes the benefits to Grand Bahama will be immense, touching various sectors, including tourism, construction, commerce, particularly at Port Lucaya Marketplace, tour operations, as well as increased revenue for the government.
“Like many of you, I have seen its (Grand Bahama) ups and downs, its struggles, and its needs. With this major investment and other investments, we are restoring the confidence of Grand Bahama,” Dr Minnis said.
Dr Minnis said the government is looking into plans to redevelop the Grand Bahama International airport, which will require a significant investment. He said the airport facility is vital to building a new Grand Bahama.
Mr Bayley said that Grand Bahama will experience major “economic prosperity” due to a tremendous increase of over 2 million visitors a year.
“What makes it significant is that…when this project is completed that not only RC, but the cruise industry in its entirety will bring 2.5 million visitors to Grand Bahama every single year,” he said.
“Today, around 600,000 tourists come to Grand Bahama, so imagine the economic prosperity that will come with the increase from 600,000 from 2.5 million over the next several years,” he said.
“With our partnership with Holistica, we believe that the redevelopment of Grand Lucayan and the Harbour Village will create a world-class experience for guests and deliver a renewed hope for the rebirth of Grand Bahama, both economically and spiritually.
“We are very excited about the potential of this project. And we think it truly would be a transformational project for the creation of a unique destination experience that would be the first in the world, in terms of the totality of its experience.”
He is confident that the project will be a success.
“I understand over the years there have been a number of instances where projects planned for Grand Bahama have not come true. Today let’s turn a new page in telling a very different story,” said Mr Bayley.
Tourism Minister Dionisio D’Aguilar also said that the sale to Holistica was well worth the wait.
He noted that the government faced considerable opposition to acquire the hotel and was castigated for its decision to hold it for a short period of time while it sought a reputable well-funded purchaser.
“Well our plan worked; we purchased it in September (2018) and 18 months later here we are selling it to Holistica Destination. Admittedly, it took a little longer than we had hoped, but Hurricane Dorian was the reason for the delay,” he said.
Comments
proudloudandfnm 4 years, 8 months ago
Now this is a sale yes? Not a MOU? Not just an agreement? An actual sale? RCCL now owns the hotel?
After so much nanny I need to hear this in plain English......
realitycheck242 4 years, 8 months ago
A huge Feather in the FNM government cap. It the PLP could have done this with the Princess towers properties sale years ago, freeport today would have still been the magic city that never missed a beat inspite of the hurricanes over the years.
proudloudandfnm 4 years, 8 months ago
I seriously doubt that. We've had way more problems than just an inland hotel closing down....
TimesUp 4 years, 8 months ago
Lets all hope this moves forward and is legitimate.
It would be a shame if this was only done for them to get approval for the project in Nassau to go ahead.
birdiestrachan 4 years, 8 months ago
This article does not say much. But doc is exceedingly proud and the secretary 0f the cabinet who was so over joyed at the OBAN fake signing . did she know it was a fake signing.??
Time will tell, because doc has signed lots of agreement. that were not even worth the paper they were signed on.
Well_mudda_take_sic 4 years, 8 months ago
Minnis took it upon himself to buy the Grand Lucayan, renovate it and then operate it at a loss while looking for a buyer to enable the government to recover the $150 million plus of taxpayers' dollars that it has invested in this hotel property to date. This was done by Minnis after the previous owner, Hutchison Whampoa (HW), had determined the Grand Lucayan was no longer economically viable as a result of the declining Grand Bahama economy as exacerbated by the frequency of hurricanes even before Hurricane Dorian.
HW had earlier decided it was in their best interest to simply pocket the insurance proceeds it had received for damages caused to the property by an earlier hurricane rather than renovate and re-open the hotel. Minnis on the other hand foolishly decided to throw caution to the wind and buy the Grand Lucayan for $65 million. HW could not believe their good fortune, i.e. the dimwitted Doc's willingness to pay $65 million for an abandoned hotel property they had determined would never be economically viable.
Not only did our dimwitted Doc buy the Grand Lucayan, but he then proceeded to pay $3 million plus of staff costs that should have been paid by HW before government purchased the hotel. After buying the hotel property, Minnis had government invest a small fortune in having his cronies in the construction business renovate it while keeping its doors open and bearing significant operating losses.
At the end of day, Minnis had caused over $150 million of the people's tax dollars to be invested in the Grand Lucayan property. Then along came Hurricane Dorian which served to prove that HW's earlier decision to abandon the property was indeed a sensible one. It didn't take Royal Caribbean and its business partner long to realise that the Grand Lucayan was essentially worthless but had become a huge political liability for Minnis as a result of him foolishly encouraging the government to invest over $150 million in the property with absolutely nothing to show for it. Royal Caribbean quickly swooped in knowing that it could leverage Minnis's dire situation for its own great benefit. In fact Royal Caribbean has sinced played our dumber than dumb PM to acquire the Grand Lucayan for virtually nothing with all sorts of outrageously generous concessions to boot, including choice parcels of beach front Crown Land at the western end of Paradise Island.
The very sweet deal received by HW from government for the Grand Lucayan, plus the related outrageously sweet deals and concessions since promised to Royal Caribbean by government, all speak to just how financially foolish and reckless Minnis can be in his effort to buy votes and preserve his politocal powerer no matter what the cost to the vast majority of Bahamians and to the financial condition of our country. The only open question is do we really know about all of the quo for the quid that must have been showered on Minnis by HW and Royal Caribbean for their great windfalls.
proudloudandfnm 4 years, 8 months ago
The FNM never renovated one square inch of that property when they bought it.
TalRussell 4 years, 8 months ago
Comrade PM and his Imperialists cabinet colleagues - never even delivered on promise to do a $10,000 paint up face lift on the - left all Hurricane all damaged hotel. Do you realize that even at the highly unlikely be the true Sale Price of $55, or $65 million - that the former owner - actually walked away but not before Whampoa - pocketed the full proceeds of the $65 million cash in insurance settlement they received- and they also loaded up every single roll of opened, and unopened, toilet papers to take with them? Not making this shi# up. Just, can't.
Well_mudda_take_sic 4 years, 7 months ago
Hell, that's even worse. You mean to tell me millions of dollars were purportedly spent on renovations done by Minnis cronies but there's nothing to show for it ! Did Dorian blow away the renovations ?
TalRussell 4 years, 8 months ago
Have you noticed the 4+ missing out photo op - left wonder the why so when its so damn obvious? Anyways.what imported republican spin genius operating out PMO-decided it would a smart idea to feature the senator for FREE port's New Disaster. I swear, I'm not making that up, that's his official ministerial portfolio's responsibility..
bogart 4 years, 8 months ago
Where is the Commonwealth of the Bahamas Official Opposition Party's commentary, or presence on such a milestone on the 'signing of the sales and heads of agreement' very large nation's property?
Is the continuous trend where the Official Government for usually 5 year term continues to made deals with just the imput of the one ruling political party in power? What is the Official Opposition getting a taxpayers funded salary doing?
TalRussell 4 years, 8 months ago
Ma comrade Bogart, siestas in Colony of Out islands are better known by the Queen's Official Loyal Opposition - as their quiet times. God, dump we Official Opposition but do Save We Beloved Queen Liz!
proudloudandfnm 4 years, 8 months ago
I just hope this is real.....
TalRussell 4 years, 8 months ago
You're so funny!
sheeprunner12 4 years, 8 months ago
Proudloudfnm must be family to Rodney Moncur ……… loves to hate Minnis.
But seriously speaking, the FNM dodged a big bullet here by offloading this colossus of a hotel in a place where most big GB hotels stand abandoned since 2000 ……… No matter what concessions were given, at the end of the day, some jobs will be provided and the spin-offs from having the cruise ship company involved will hopefully pay off for GB.
TigerB 4 years, 8 months ago
I found this, Dated Sept 21st 2019, I wonder what Brave is saying now...
By KHRISNA RUSSELL Deputy Chief Reporter krussell@tribunemedia.net
THE government’s acquisition of the Grand Lucayan was likened to Oban Energies’ proposed $5.5bn oil refinery for Grand Bahama as the Official Opposition continued its assault on the hotel purchase.
“This is not Oban, though it is equally a bad deal,” Official Opposition Leader Philip “Brave” Davis told Parliament yesterday as he called on the government to provide a business plan to support its decision. In his communication to the government’s resolution seeking $35m to complete the Grand Lucayan sale, Mr Davis rejected Prime Minister Dr Hubert Minnis’ assertion the former Christie administration did not have a plan for the Grand Bahama property.
But although he sought to prove the government’s plan for the resort is insane, Mr Davis did not say whether he supported the resolution – as is customary during House debates of this kind.
“I also ask the government to provide a business plan to support this massive financial undertaking,” Mr Davis said.
“Parliament needs to know and the Bahamian people need to know the likely impact of the purchase and operation of these hotels on the national debt and ratings of international agencies.”
Regarding the PLP’s plan for Grand Bahama, Mr Davis said the outgoing Christie administration left a comprehensive report outlining measures needed to ensure both the short and long term sustainability of the Grand Bahama economy, particularly Freeport.
Fishreeler 4 years, 8 months ago
The very nice deal HW received from the government for the Great Lukyan, plus the incredibly nice deals and concessions the government promised to the Royal Caribbean, suggest how reckless and reckless from a financial point of view Minnis's drive to buy votes and keep them can be. its political influence is independent of the cost of the vast majority of Bahamians and the financial situation of our country.
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