The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

FREE National Movement Leader Michael Pintard said when negotiations between Royal Caribbean/ITM Group were bogged down after Hurricane Dorian, the sale and acquisition of the Grand Lucayan hotel was put in jeopardy.

The Minnis administration had tied the sale of the property to the ability of Bahamas Ports Investments Limited, the joint partnership between RCL and ITM Group, to nail down the port deal, a decision former Tourism Minister Dionisio D’Aguilar has since called a mistake.

Privately, government officials have blamed the Hong Kong based Hutchison Whampoa for the struggling port negotiations.

 The agreement between the government and BPI for the Grand Lucayan was cancelled on Monday.

 Royal Caribbean said the cancellation was a mutual decision after ITM Group decided not to proceed with the acquisition. The company said it looks forward to participating in the new public bid process for the property.

 “Upon learning of ITM’s withdrawal, Royal Caribbean immediately began searching for a new partner with experience as an established operator in the land-based hospitality industry,” Royal Caribbean said in a statement. “We look forward to participating in the new public bid process for the purchase of the Grand Lucayan once a bid is issued by the government of The Bahamas. The transformation of the Grand Lucayan into a premier entertainment resort will complement our plans for the development of a world-class cruise port facility in Freeport to re-establish Grand Bahama as one of the world’s most popular cruise destinations.”

 In his statement, Mr Pintard reiterated the FNM’s position that it acquired the Grand Lucayan because it was not prepared to let the hotel close and deteriorate like the Royal Oasis and Xanadu properties did before it.

 “The Royal Caribbean/ITM Group was thought to be an ideal purchaser, credible, well-funded with an ambitious plan for the redevelopment and expansion of berths at the Freeport Harbour and a new strategy for the Grand Lucayan property,” Mr Pintard said.

 “The port deal anticipated construction of up to seven new berths to accommodate the largest cruise ships in the world. With this new harbour development, hundreds of thousands of additional cruise passengers would be delivered to Freeport on an annual basis, who using local transportation would make their way to the Grand Lucayan for a fun-filled day at the beach or take advantage of the wide variety of other ecotourism adventures available on the island in addition to enjoying the redeveloped Harbour facilities themselves. It was considered a win-win-win.

 “The negotiations for the acquisition of the Grand Lucayan hinged on the Royal Caribbean/ITM Group reaching an agreement with the Freeport Harbour Company on the construction of their new berths. Unfortunately, those negotiations bogged down in the wake of Hurricane Dorian and the pandemic and eventually stalled putting the sale/acquisition on hold and eventually in jeopardy.

 “A study commissioned by the government, conducted by accounting firm KPMG, concluded that the best chance for the long-term success of the Grand Lucayan was for it to be linked to the port deal being contemplated by the Royal Caribbean/ITM Group, which guided and gave the government the confidence to try to finalise a deal with the three parties.”

 Deputy Prime Minister and Minister of Tourism, Investments and Aviation Chester Cooper told reporters on Tuesday that he does not believe a buyer’s interest in the Grand Lucayan will hinge on what happens with the port.

“The more activity there is on the island, naturally the better it will be for a new investor into the property,” he said. “But one is not contingent upon the other. It was a bad idea to couple them at the very beginning because here you have two private entities negotiating with each other on separate sets of circumstances that impact the deal on the Grand Lucayan resort while we sit and while the property deteriorates and people continue to be unemployed.”

 Mr Cooper said the government has identified six credible interested parties. He said the government hopes to recoup its more than $150m investment in the project.