The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A former Grand Lucayan director is backing the Government’s decision to set aggressive timeline for the resort’s sale, saying it would “be great” if the deputy prime minister achieves a signed sales agreement by end-April.

Carey Leonard told Tribune Business that closing the sale will likely take longer as Chester Cooper, also minister of tourism, investments and aviation, yesterday said the Davis administration planned to select a preferred bidder this month from three “substantial” offers by unnamed parties to acquire the resort.

Having served on the Grand Lucayan’s Board under the former Minnis administration, Mr Leonard also backed the current government’s decision to terminate long-running negotiations with the ITM Group/Royal Caribbean joint venture.

“I’m very pleased that the Government is trying to do something about the hotel. Having been a director of it, I know there were some very viable offers,” he told this newspaper. “I give this government credit for cancelling the contract. It was needed. Kudos to them for doing that.

“People were interested in the hotel, but were waiting to see what the [former] government did with the Royal Caribbean deal. I can also understand them wanting to narrow the buyers down.” Mr Cooper, in giving an update on the Grand Lucayan talks before Cabinet yesterday, said: “We are at a stage in the discussions with the Grand Lucayan resort where we have three substantial offers.

“Either of these offers would be, in my view, acceptable to the Government and acceptable to the Bahamian people. We are at the moment engaged with all three of them. We’re seeking the best outcome for the Bahamian people. I’ve always said that it will be a combination of the size of the cheque and vision for the resort, and a shared vision for Grand Bahama.

“So, we’re seeking to find the right partner. We want to get this right and we’re being very deliberate. We’re learning from the mistakes of the previous administration with the last deal that was on the table, so we’re going to be very deliberate to get a deal that is good for the economy of Grand Bahama and the people of Grand Bahama,” he added.

“I anticipate that by the end of April we would have determined the sole candidate that we will advance into an exclusive contract with, but again, I want to reiterate that we are going to learn from the mistakes of the past.”

Mr Leonard backed this timetable, saying: “I think he [Mr Cooper] may be able to get a contract signed in April. Getting a final deal completed for the hotel will take longer than that. It will take months, but if they get a signed contract by the end of April it will be great. I don’t think that’s unreasonable.

“If they don’t set a time, nothing is going to happen. I give them credit for setting a time. I’m not sure that’s the right time, but at least they’re getting people moving.” Mr Leonard added that finding the right Grand Lucayan purchaser, and increasing tourist volumes again, will make Grand Bahama International Airport more attractive to potential public-private partnership (PPP) investors.

“The key to the airport is getting the hotel fully operational because then you get that passenger flow,” Mr Leonard said. “It’s critical for the Government to get the hotel sold and up and running as quickly as possible because it relieves the burden on the airport.”

Mr Cooper yesterday said Bahamian taxpayers have invested close to $200m in the Grand Lucayan since the Government acquired the resort in September 2018. “We are anticipating that the construction phase will likely take 18 months,” he said of the post-sale schedule.

“We are desirous of a phased approach so that we don’t lose the rooms that we have at the Lighthouse Pointe, and we’re able to retain the employment of the persons at the Lighthouse Pointe while the other stages of the resort are being developed.”