$100M purchase and $300M in Renovation gone, Grand Lucayan hotel deal goes bust

By Deandrea Hamilton and Shanieka Smith

Editorial Staff

A $100 million purchase offer has been taken off the table and with it goes up in smoke a once touted $300 million renovation and construction plan for the stunning and beleaguered mega hotel property in Grand Bahama, the Grand Lucayan.

After being chosen over the applicants for the purchase of the Grand Lucayan, Electra America Hospitality Ltd (EAHL) is unable to finance the deal and just like that, Grand Bahama is left with no buyer for the beleaguered resort in Lucaya.

The EAHL said that due inflationary pressures, the cost of construction would be too high.  As a result the closing deadline which was set at November 15, 2022 has been canceled and negotiations with the EAHL have come to a close.

Julian Russell, Chairman of the board of Lucayan Renewal Holdings Limited, disclosed that another “well-capitalized entity” has since shown interest and the LRH board is now in discussions with them.

Many Bahamians, however, see the deal with EAHL falling through as a setback and are concerned about the future of the resort and the island.

Several delays made this eventuality one which is not completely out of the blue.  Electra America was very concerned about a defunct airport and low air arrivals.

Grand Bahama Chamber of Commerce’s President, James Carey is skeptical about the imminence of the next deal and conveyed that the Grand Bahama business community needs more reassurance on the matter.  He said that while details of negotiations may be kept private, more information can be revealed.

Acting Prime Minister Chester Cooper in a statement did not give in to the request for more insight, saying only that he remains confident that a deal for the Grand Lucayan can be secured.  Cooper, who is the minister responsible for tourism, aviation and investment also noted that the government is committed to doing what is right for the Bahamians.