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FREEPORT, Grand Bahama Island, Bahamas – Acting Prime Minister, Minister of Tourism, Investment and Aviation I. Chester Cooper said on Wednesday, May 11, that the sale of the Grand Lucayan Hotel is the beginning of the island’s revitalization.
The property was acquired for $100 million by Electra America Hospitality Group, whose principals have 150 years of hotel industry experience and is part of a conglomerate with $7 billion in global capital.
The announcement was made at a press conference at the Grand Lucayan Hotel attended by Grand Bahama Minister Ginger Moxey, Lucayan Renaissance Holdings Chairman Julian Russell, and other board members and senior government officials.
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One of the government’s goals is to return the island to economic growth. “It is impossible to develop a plan to restore Grand Bahama’s economic prosperity without selling the Grand Lucayan Resort as a key component.”
The previous government bought the hotel in August 2018 for $65 million and currently provides a $1.5 million monthly government subsidy. He said the current government hopes to find a buyer who has a vision not only for the resort but also for the island.
“Today marks the beginning of the revitalization and rebirth of Grand Bahama,” said Deputy Prime Minister Cooper.
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He said the agreement is subject to a 60-day due diligence period and is expected to be completed in no more than 120 days.
Electra America Hospitality Group has committed to a $300 million renovation and construction program to rebuild the property into an environmentally sustainable luxury resort. It is expected to become a luxury lifestyle hotel with 200 rooms and 24 villas, an upscale conference hotel with more than 500 rooms to cater to the group and convention markets, an all-suite family resort with more than 200 condo-hotel suites, and a renovated golf course with a new country club and golf villas. The casino will be renovated and managed by a world-class casino operator.
In addition, the new resort will have at least 11 world-class restaurants and 10 bars, and the resort will feature spa and fitness facilities, children’s facilities, event spaces, swimming pools and water features.
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“We expect the transaction to be completed by this summer at the latest, with renovation and new construction work to start shortly thereafter.
“All renovation and construction work is expected to be completed by January 1, 2025,” the acting prime minister said.
The project is also expected to create multiple jobs – 2,000 during the construction phase and an additional 1,000 permanent jobs, 80 percent of which will be for Bahamians.
The hotel will remain open throughout the construction phase.
There will be live Bahamian entertainers throughout the hotel to entertain guests.
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He said: “Given the experience with Hurricane Dorian, Lucayan Renewal Holdings Limited has entered into an agreement with the buyer to insure the first $10 million of hurricane losses if two designated storms make landfall within the first five years of ownership of the property.
“As part of the purchase price, the company has pledged to donate $5 million to ‘Partnerships: Development Partnerships’, a new division of the Grand Bahama Ministry of Tourism, to be used for community projects and to provide funding for Bahamians to create and grow businesses to enhance the tourism product and work in partnership with the Ministry of Tourism and the Tourism Development Corporation.”
The Acting Prime Minister also used the opportunity to say that the government has committed to rebuilding and reopening the world-class airport by 2025 and the process has already begun.
“Through this sale, we will recoup a significant portion of the investment made by the Bahamian people and allow Grand Bahama to once again become the vibrant entertainment capital of the Bahamas,” he said.
He said the announcement marks “the dawning of a new day on Grand Bahama Island” and the “beginning of a return to luxury living on Grand Bahama Island.”
Russell Urban, principal and managing partner of Electra America, attended the press conference and said the resort’s success is inseparable from the hospitality of the people. “They are very accommodating, very friendly, very attentive, but most importantly, what we saw today, they are very passionate. They are passionate about this country… and passionate about this amazing resort.”
He said they were interested in the resort because they saw a unique opportunity in a world-class location “to create vitality and revitalize a community that has been devastated in recent years. So we are very pleased and honored to have been selected for this fantastic opportunity.”
He said Electra works with the local communities they are working with, so they have already reached out to several people and that will expand over the coming months as they go through the process. His team will be asking a lot of questions on the island and getting to know the locals “because it really is a collaboration,” and they also said they are excited to be part of the island’s new chapter.
Grand Bahamas Minister, the Honourable Ginger Moxey, also gave a brief speech, stating that the day was “a big day for Grand Bahama.” She said Wednesday was a big day for Grand Lucayan, with the groundbreaking ceremony for the Carnival Cruise Port to be held tomorrow (Thursday), and the airport and new hospital with an oncology center to be inaugurated soon.
“We understand that the people of Grand Bahama have endured a lot, suffered a lot, and they just want results. In other words, less talk and more action.
“This administration understands the mission. We need to meet the island’s urgent needs, rebuild our economy, and do everything we can to start a new day for Grand Bahama.”
She said they believe Electra is the best fit for the island and they have pledged to donate furniture from the property to residents across the island, with the Grand Bahama Ministry taking care of the effort.
“I was touched that Electra could understand that,” she said.
The event brings hope and opportunity to local residents for the future, “ultimately, we are fulfilling our clear vision to make Grand Bahama the premier destination in the Bahamas.”
Acting Prime Minister Cooper will also attend the Carnival Cruise Port groundbreaking ceremony on Thursday morning.
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