The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net’

Grand Bahama businesses yesterday voiced growing pessimism that the Grand Lucayan’s sale to the ITM Group/Royal Caribbean joint venture will ever be completed especially as a general election nears.

James Rolle, Dolly Madison’s general manager, told Tribune Business: “I can’t see this deal going anywhere now. I think the political season has mostly caused people to not even believe something positive can come out of this.

“I think that anyone who is going to come into Grand Bahama and invest, the first thing they have to look at is to see how exactly other deals have been made in Grand Bahama. If they can’t get an equal or better deal, then I don’t think they are going to be prepared to make any big investment into Grand Bahama.”

Mr Rolle spoke out after Dionisio D’Aguilar, minister of tourism and aviation, said it was “extremely frustrating” that the Grand Lucayan’s sale continues to be delayed by the protracted wait for ITM/Royal Caribbean to close their separate deal with Freeport Harbour Company.

He told Tribune Business that concluding negotiations over Freeport Harbour’s redevelopment - including the addition of new cruise berths - was a “condition precedent” that must be satisfied before the joint venture will acquire the resort from the government.

Suggesting that the government nevertheless “remains optimistic” that the Grand Lucayan’s sale will eventually get over the line, he said he had been “advised” that an agreement between ITM/Royal Caribbean’s Holistica joint venture and Freeport Harbour Company - the latter which is 50/50 owned by Hutchison Whampoa and the Grand Bahama Port Authority (GBPA), the former having management control - was “imminent”.

“One of the main reasons this deal has not been able to come to a conclusion is there is a condition precedent, and the condition precedent is for Royal Caribbean and Freeport Harbour Company to seal their deal, and that has not happened,” Mr D’Aguilar disclosed to this newspaper.

“Once that happens that triggers the ability to seal our deal. They want to get their deal done to make sure they have a place to go. It’s extremely frustrating that Freeport Harbour Company and Royal Caribbean have taken this long to seal a deal. It’s obviously impacted our ability to conclude our negotiations with Royal Caribbean. We can negotiate all we want, but this is a condition precedent of theirs.

“They don’t want to purchase the hotel and real estate, and buy into that, and end up not getting a deal at the port. They want to get that done. Clearly it’s frustrating that this has not concluded yet. We wanted it to conclude, but remain optimistic it’s going to happen,” the minister continued.

“I’m advised they’re at the commas and colons stage of concluding their agreement, putting them in the right place. Hopefully it’s imminent. We’re ready to move forward, but are waiting for this condition precedent. We’re waiting for Freeport Harbour Company and Royal Caribbean to finalise their agreement. We’re almost ready to go, but nothing can move forward until we see this agreement.”

Greg Langstaff, owner of the Grand Bahama Brewing Company, yesterday added: “It would be great for Grand Bahama if they can get on with it and finish it off and did something, but I wouldn’t be surprised if nothing happens out of this Grand Lucayan sale. The Government has never been very good at managing hotels.”

Acknowledging fears that negotiations are being dragged out, Mr Langstaff said: “Here’s the deal. Not only doesn’t the Grand Lucayan have any customers, the tourism industry is dead right now. I wouldn’t invest in anything right now unless it was medical-related.”

Suggesting that “the cruise lines aren’t in any position at all” to finance major investment projects, he added: “At the time they thought it was a good idea but that was before COVID-19.

“Since the Hutchison group have ownership of the port, you have to have them involved. If there’s outstanding liens, mortgages and payroll liability, for instance, then it all needs to be cleared up, or we need to be aware of what the extent of it is.

“If the Government didn’t want to get into a deal with it, or didn’t think they could deal with it, then they could have declined. The whole world is dead right now. I can’t imagine getting real excited about a real estate deal for a hotel that they couldn’t fill. What do you do? I don’t see tourism bouncing back.”