Bahamas Government in advanced talks to sell Grand Lucayan Resort

After about six years since the Bahamian government acquired the 542-room Grand Lucayan resort, it is back at the negotiating table and is poised to finally seal a sale for the embattled property.

The Grand Lucayan, a four-star resort with 542 rooms located in Freeport, Grand Bahama, has been a big economic drain for the government, with a few million dollars spent every year just to keep parts of the facility reasonably functional.

Prime Minister, Dr Philip Davis announced that his administration has been negotiating with a potential buyer, although he did not name the interested party. PM Davis, in a brief address, said that the discussions this, far have proven to be very promising and invited the public to “stay tuned”.

He repeated that his government is one that remains committed to the redevelopment of the economy of Grand Bahama, which would include the sale of the Grand Lucayan Resort.

The ownership history of the Grand Lucayan is convoluted. The previous administration under Prime Minister Hubert Minnis purchased the resort in August 2018 from Hutchison Whampoa for $65 million.

This move came in for quite some criticism because some of the opposition politicians said, seemingly with credible reasons, that the purchase price was much higher than the actual valuation of the property. Even though this resort has potential, it’s been bleeding public finances at a rate of about $1.5 million every month that the government keeps it open.

It wasn’t until 2022 that it looked like there was a breakthrough when Davis’s administration announced that it had reached an agreement on the sale of the resort to Electra America Hospitality Ltd. for a reported sum of $100 million.

Electra America had big plans for the property with a $300 million outlay to redevelop the property into an environmentally sustainable luxury resort. However, that deal collapsed six months later, adding to the frustrations on the future of the Grand Lucayan.

Despite setbacks, the present government is very optimistic. The sale of the Grand Lucayan has potential to be a game-changer in jumpstarting the economy of Grand Bahama, an island whose economy has been in free fall for some years now.

Once a driver of the island’s tourism, this resort can again serve as a gateway to economic prosperity, whenever the sale is fully completed. The agreements the government is working on, reflects a bigger strategy of revitalizing Grand Bahama that also includes other major infrastructure projects being performed such as the redevelopment of the island’s airport and the International Bazaar.

Even as the Bahamas government establishes its work on finalizing a sale, residents of Grand Bahama remain hopeful that this latest development for the Grand Lucayan will mean the return of an economic upswing to the island.