Lucayan Renewal Holdings Ltd. signed a letter of intent (LOI) with Royal Caribbean Cruises and the ITM Group today for the purchase of the Grand Lucayan resort on Grand Bahama for $65 million and the redevelopment of the Freeport Harbour, the government said.
“The proposed joint-venture project between RCL/ITM will include 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,” the Office of the Prime Minister, Grand Bahama said in a statement.
“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.
“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.”
Lucayan Renewal Holdings is a special purpose vehicle established by the government charged with handling the process of finding the buyer for the property.
The statement further revealed that the board of directors of Lucayan Renewal Holdings Ltd. unanimously approved a resolution to recommend to the Cabinet the sale of the Grand Lucayan Resort to RCL/ITM on March 22.
The announcement comes one day after Minister of Tourism Dionisio D’Aguilar said Lucayan Renewal Holdings Ltd. Chairman Michael Scott’s claim that a preferred bidder for the Grand Lucayan resort will likely be named this week was “a little premature”.
The government purchased the resort last year for $65 million, with $30 million paid upfront.