The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Grand Lucayan has yet to receive its expected $20m Hurricane Dorian insurance claim payout even though the property’s sale to the Royal Caribbean/ITM joint venture was completed over two months ago.

Michael Scott, chairman of Lucayan Renewal Holdings, the special purpose vehicle (SPV) that owns the resort, told Tribune Business: “We’re still in discussions with the adjusters. The claim itself is about $26m. After you give insurers credit for the deductibles, the net payout should be $20m.

“Everything is sort of distended because of this COVID-19 shutdown. I would have hoped to have had it done by now, but it really is a question of going back and forth with the insurers. But it would be about another month or so.”

Mr Scott confirmed the Grand Lucayan is “insured with Royal Star Assurance, they are the underwriters”. He added that Royal Star is “layered off, as most insurers in this country are, with various layers of reinsurance.”

Royal Caribbean and ITM Group purchased the property for $65m in March, paying a net $50m price with the remainder to be collected from insurance proceeds on the Hurricane Dorian claim.