Hutchison Port Holdings and Cheung Kong Property Holdings Limited have put the 409-acre Grand Lucayan Resort complex up for sale in a sealed bid auction, and while the owner's preference is to sell the resort complex as a single transaction, bids for individual assets will be considered. Yesterday in Grand Bahama, Prime Minister Perry Christie said there had been "positive and immediate response" to the listing.
Indeed, the feeling is that the fate of this property will be different from the bankrupt, stalled $3.5 billion Baha Mar development.
"Baha Mar has garnered so much negative resort news for The Bahamas recently," remarked Stan Kozlowski, HVS Capital Corp. "Unlike that situation, we see significantly more favorable economic investment opportunities for Grand Lucayan, no matter what options a potential buyer may consider."
The fact that there is no reserve price for the complex or individual pieces was the subject of much parliamentary comment. What was not discussed in the House of Assembly was that additionally, seller-provided purchase-money financing may be available to appropriate bidders. The deadline for submitting bids is June 10, 2016.
Mike Sullivan of HVS Capital Corp. -- hired by C K Property Holdings to handle the sale -- spoke with Guardian Business about the benefits of the way the auction is being conducted.
"Using the sealed bid auction format, bidders are given the flexibility to make their own assessments as to value. This is particularly true given that bids for individual assets will be considered.
"For example, a casino-oriented buyer may see solid value in that asset while an all-inclusive hotel owner/manager would most likely see more value in those assets. We believe there are a number of investment opportunities for interested buyers, whether they are interested in purchasing the resort in its entirety or looking at individual components," Sullivan said.
Christie was speaking at the Grand Bahama Business Outlook, and said, "We are told there has been a positive and immediate response to those properties being placed. We see this as a positive step forward as we expect major well-known hotel/casino investors and operators to be attracted and bring about a renaissance in Grand Bahama tourism."
In a separate release, Sullivan elucidated other opportunities: expanding and/or relocating the casino, converting additional accommodations to an all-inclusive product or converting some accommodations to vacation or whole ownership.
The Grand Lucayan Resort complex totals 1,271 guestrooms and includes four hotel elements: the 10-story, 528-room Breaker's Cay tower; 198-room Lighthouse Pointe, newly renovated as an all-inclusive; and 23 Lanai Suites -- all with 12 food and beverage outlets and three swimming pools, plus the 522-room Memories Beach Resort, presently leased to Sunwing Travel Group.
The property also includes a 40,000 sq. ft. conference center including a 15,000 sq. ft. ballroom, 16 breakout rooms, plus 50,000 sq. ft. of outdoor function space; a 23,375 sq. ft. casino with 25 gaming tables and 195 slot machines; Destination Spa and fitness center; two golf courses, including the Robert Trent Jones, Jr. Reef Golf Course, four multi-surfaced tennis courts and approximately 15,000 sq. ft. of retail space.
K. Quincy Parker
Guardian Business Editor
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