The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The developer behind a $360m Eleuthera resort project last night asserted it remains “fully committed” despite recently terminating multiple staff amid a break-up with its main contractor that has stalled critical construction work.

Cotton Bay Holdings, which is developing a Ritz-Carlton Reserve resort touted as creating 250 to 300 full-time posts when completed, as well as some 450 construction jobs, confirmed in response to Tribune Business inquires that it is “currently managing a transition” to a new general contractor following the departure of Greython Construction in a move that has halted all work on the hotel component.

The developer, which is headed by Colombian billionaire, Dr Luis Carlos Sarmiento, and his family declined to comment directly on lay-offs which well-placed sources, speaking on condition of anonymity, said occurred in mid-May just after the general election. It described “personnel adjustments” as “internal decisions” for Cotton Bay Holdings but did not deny that redundancies have occurred.

However, this newspaper can reveal that numerous Colombian workers, as well as four out of a total six Bahamian staff, have been terminated to leave Cotton Bay Holdings operating with a small two-strong skeleton team in Nassau. The developer’s Eleuthera office has largely been emptied, contacts have confirmed.

One source described the split between Cotton Bay Holdings and Greython as “the perfect storm”, arguing that it stemmed from mistakes on both sides. Revealing that the two broke-up in the 2026 first quarter, they added: “Everything is on stop. The only thing they are doing is that Emile Knowles, the contractor, is out there doing some roadworks but the hotel is on hold.”

Cotton Bay Holdings, in its statement to Tribune Business, largely confirmed this is the situation that exists. It affirmed that “active works are currently underway” on the relocation of Chris Brown Boulevard - the former Coco Plum Road - and the golf course while it seeks to replace Greython, which was the main contractor for Carnival’s $600m Celebration Key project in Grand Bahama, via an open, competitive tendering process.

Another well-placed contact, also speaking on condition of anonymity, said just two of Cotton Bay Holdings’ four Bahamian staff based in Nassau remain employed with the developer in legal and accounting functions. They added that both the terminated workers worked in the procurement department, which they suggested signals construction of the hotel is unlikely to resume any time soon.

And both Bahamians based in Eleuthera, including Cotton Bay Holdings’ office manager and chief real estate sales liaison, have also been released along with numerous Colombian employees. The developer was said to have blamed the redundancies and terminations on a “restructuring”.

“They let all Bahamians go apart from two in legal and accounts in Nassau,” the source revealed. “They also let quite a few Colombians go. The Colombian surveyors here were terminated immediately, and they had to leave within two days. The Bahamian staff got their notices on May 15th; they obviously weren’t happy. They dismissed the office, so quite a few Colombians went back that week.

“They didn’t share much with the Bahamian team. They were just told the company was going to be restructuring and that was it. I know there were also concerns about the loss of the Ritz-Carlton Reserve brand” over the construction delay and development halt.

Cotton Bay Holdings last night rejected these concerns in its statement to Tribune Business, asserting: “Any personnel adjustments associated with Cotton Bay Holdings are internal decisions.

“Contractor transition is a normal part of a project of this scale, and does not affect Cotton Bay Holdings' long-term commitment to the development, its stakeholders or the community. Cotton Bay Holdings also remains fully committed to its agreement with the Ritz-Carlton Reserve brand.

“Cotton Bay remains one of the most significant resort and residential developments underway in The Bahamas. The company remains focused on delivering a world class destination for South Eleuthera while creating long-term economic opportunities through investment, employment and tourism development.”

However, one source told Tribune Business of the resort development halt: “This has a big effect for the community. To let go the Bahamians tells me this is for longer. If it was only for four to six months, they could have kept them on. It was an immediate termination for the workers that day, which is an awful thing to do. If it was for a few months they would not have let everyone go.

“What will be interesting is, when and if they try to pick things up, will they bring in more of their people from Colombia? I understand that the oversight from Colombia has been incredible.”

Cotton Bay Holdings confirmed it has notified the Government that itself and Greython have parted ways. “Cotton Bay Holdings is currently managing a transition of its general contractor and has commenced an open selection process, inviting qualified general contracting firms to participate,” it said.

“This process is progressing and reflects the company's commitment to ensuring the project is completed as planned to the quality and standards of a Ritz-Carlton Reserve. Cotton Bay Holdings has informed the Government of The Bahamas, through the Office of the Prime Minister and the Ministry of Works, of its general contractor transition and affirmed commitment to reach completion.” The project was previously billed as a four-year build out, placing completion around 2029.

The challenges for a project, first conceived more than 25 years ago in the late 1990s, have emerged just over one year after Cotton Bay Holdings held its official ground-breaking that was attended by both Prime Minister Philip Davis KC and Chester Cooper, deputy prime minister and then-minister of tourism, investments and aviation.

The construction hold-up represents delayed jobs, economic activity and growth that is badly needed on south Eleuthera and the wider island. Thomas Sands, the Eleuthera Chamber of Commerce’s president, yesterday told Tribune Business that the Ritz-Carlton Reserve project is a critical “part of the evolution of Eleuthera’s economy and that brand is very important”.

“What we observed was the general contractor on the hotel has left. Greython has left,” he confirmed. “We are not sure of the details related to them leaving. That was never shared, and we were not privy to that information. What we observed on-site is the golf course construction is still going, and Emile Knowles has the perimeter roadworks that he has been executing prior to Greython coming in.

“Those two things are still ongoing, and the in-house project management team is still on the ground. We are uncertain what has happened to the general contractor; of course, we would like to know, but it’s a very delicate thing and we wait to hear from them. We don’t want to disturb the construction.”

Mr Sands said he and the Eleuthera Chamber did not believe Greython had started construction on the resort component “in earnest”, instead focusing on site clearance and building a camp to house its workforce that was “partially completed” before it pulled out.

“We’d like to understand what the plan is moving forward,” he added. “We look forward to them moving forward. They are a very important part of the evolution of Eleuthera’s economy, and that brand is very important to Eleuthera. Whatever the Chamber can do to assist, we are available.

“I think the developer is still committed otherwise they would be gone. There is still some level of works going on at the site. We consider this a pause, and look forward to them moving forward as quickly as possible.”

Mr Cooper, speaking at the 2025 Eleuthera Business Outlook conference, said the Ritz-Carlton Reserve project was increasing its planned investment by $160m - from an originally-planned $200m to $360m - and expanding the number of residences by 35 percent.

Conceding that the project has existed in various forms since 1997, when its backers obtained a Heads of Agreement with the-then Ingraham administration, Mr Cooper said then: “Cotton Bay Holdings has been a fixture here for 25 years and I am delighted that it has finally set to take-off. But you have seen and heard much about this development before, and I know you want to see the ground-breaking before you get too excited.

“They are currently employing 30 employees, and we expect the number in the construction phase to increase. At its peak, to 450, and during its operations to peak at 550 or 650.. during the height of construction. Already the plan is expanding, and we expect the proposed number of residences to increase from what was announced.

“Originally they had indicated 72 residences and that now increased to 97. They had originally forecasted overall investments of $200m, and I’m now reliably advised that has increased to $360m. So, ladies and gentlemen, this is real, and we want Eleutherans to be positioned to have first dibs at the jobs and the spin-off business opportunities in Eleuthera,” he said.

“It is necessary for us to seize the opportunities and not just be standing by but engaged and participate and find out how you may benefit.” Daniel Zuleta, Cotton Bay Holdings’ construction managing director, told the same conference that the developer was planning to supply 100 percent of its 10 mega watt (MW) energy needs from its own 47-acre solar farm following Eleuthera’s recent history of power outages and energy blackouts.

And, pledging that the Ritz-Carlton Reserve will seek to set “the gold standard” for environmental sustainability, he added that the project is targeting a 40 percent reduction in its carbon footprint.