NASSAU, Bahamas — The Grand Lucayan’s chairman yesterday reassured there is “no deal breaker” after it was agreed that negotiations over the hotel’s sale be extended by 45 days to September 15, The Tribune reported on Friday, August 5, in an article written by Business Editor Neil Hartnell.
Julian Russell told Tribune Business he was “very, very confident” that the resort’s $100m sale to Electra America Hospitality Group will ultimately close with both sides agreeing that more time is needed to complete “due diligence” and all the required legal documents.
Asserting that the US-based purchaser remains “high on Grand Bahama”, he said its representatives have been present at the Grand Lucayan “just about every day” since the deal was first announced on May 12, while also interviewing resort brands it has selected as potential hotel operators.
And, seeking to manage expectations among Grand Bahama residents, Mr Russell pleaded for “patience” over the sale negotiations given both the transaction’s complexity and a history of prior deals failing to complete despite being announced with great fanfare.
“It does take time. This one may take a little while. There’s still a few things we need to close,” the Grand Lucayan’s chair told this newspaper of the need for a 45-day extension. “But I am very, very confident that we’ll progress that forward. Very confident. I’ve got no reason to believe otherwise. I have no doubt we’ll get it done and get this deal closed.”
Asked whether there were any potential obstacles remaining to the sale’s closing, he added: “I don’t see any, no, and I think Electra is still high on Grand Bahama. I don’t see any deal breaker, no. I can tell you that from May 12 they’ve [Electra] been on this site just about every single day, sometimes with as many as 10 to 12 people.
“It’s not as if they’re sitting down and doing nothing. There are lawyers, operators, all the flags that they have for interviewing. I know they have interviewed quite a few operators for the hotel.”
Electra’s continued interest is evidenced by the fact the 45-day due diligence extension was announced via a joint statement between itself and the Grand Lucayan Board.
Russ Urban, Electra America’s chief executive, was quoted as saying: “We are excited about Grand Bahama island, and as we move forward with closing the deal, we reassure the people of Grand Bahama of our commitment to developing a world-class resort and collaborating on community development initiatives.”
The joint statement added that “no other material changes” to the sale’s closing schedule are presently anticipated, and that construction work and renovations to Grand Bahama’s ‘anchor’ hotel property will begin in January 23 as planned. The Board said the sale was “steadily progressing and on track for completion”.
Mr Russell, meanwhile, said he and all other Grand Lucayan Board members understood how important the resort’s sale is.
“I’m just going to use a flippant term a real estate agent said to me a couple of months ago,” he told Tribune Business. “This deal is like a pancake. Once you flip it everybody eats. I think that sums up exactly how important the sale of the Grand Lucayan is to Grand Bahama.”
See complete article in The Tribune at http://www.tribune242.com/news/2022/aug/05/no-deal-breaker-lucayan-sale-gets-45-day-extension/
