By OSWALD T. BROWN
WASHINGTON, D.C., March 28, 2019 — The Letter of Intent (LOI) signed by Lucayan Renewal Holdings Ltd. with Royal Caribbean Cruises Ltd. (RCL) and the ITM Group to begin exclusive negotiations for the purchase of the Grand Lucayan Resort at a price of $65 million has been described as “a game changer” by one of the principals involved in the negotiations.
Attorney Michael Scott, Chairman of Lucayan Renewal Holdings Ltd., said in an interview conducted by email that it is “a lateral move that involves not only the sale of a hotel, but the investment in a vision for Port Lucaya and Grand Bahama.”
“Essentially we double the traffic generation by adding sealift as well as airlift and day traffic as well as stay traffic,” Scott said.
The LOI was announced in Freeport, Grand Bahama, on Wednesday by Senator the Hon. Kwasi Thompson, Minister of State for Grand Bahama in the Office of the Prime Minister. The proposed joint-venture project between RCL/ITM includes the redevelopment of the Freeport Harbour as well as “the redevelopment of the Grand Lucayan Resort into a world class destination, featuring water-based family entertainment, with dining, gaming and entertainment options, and five-star hotel accommodations,” according to a press release.
“The redevelopment of the Freeport Harbour is anticipated to result in a significant increase in cruise ship arrivals, bringing approximately an additional 2 million passengers annually to Grand Bahama,” the press release stated. “Phase one of the proposed development represents a projected $195 million investment over a 24-month period. Approximately 2,000 jobs are expected to be created in the first phase of the project.”
Meanwhile, Scott said the deal was “meticulously negotiated by the negotiating sub-committee of the Board in conjunction with the MOTA and the OPM,” describing it as “a watershed or seminal moment for the renaissance of Port Lucaya and a complete facelift for the Grand Bahama tourism sector.”
“ITM are experienced hotel developers — famously in Maracaibo in Cozumel, Mexico — and RCCL, which has a 50-year relationship with The Bahamas, requires no introduction,” Scott said. “The JV partners have been thoroughly vetted and the HOA when negotiated will tie timelines and milestones of development to concessions and initiatives granted by the Government.”
Scott noted that it is also “an attempt to move the tourism market in Grand Bahama to the next paradigm by empowering Bahamians to participate in commercial opportunities which will be generated by this project, not just as service personnel but also as owners and entrepreneurs.”
“We have and will recover through this deal the full $ 65 million paid out by the Government on the bailout,” Scott said. “We promised that we would have this done within the first quarter of 2019 and that promise has been kept. It is a gamechanger because it is a lateral investment move with a bold, imaginative and multidimensional plan.”
Scott said the plan is formed in three parts: the renewal of the hotel and the addition of a theme park/vacation village; the creation of a multi-modal transportation link with Bahamian participation; and the complete overhaul and modernization of the cruise port terminal facility in conjunction with Hutchison.
“This means, as I said, that we will have the addition of visitors from sea as well as by air,” Scott said. “And with a vacation village at the Grand Lucayan complex — together with commercial, shopping, restaurants, etc., at the new cruise port — we will have day traffic as well as stay traffic. There will be tourists coming in for the day, plus the overnight or multi-night stay component at the hotels in the complex.”
