A 100 percent Bahamian investment consortium has made an offer to the Hotel Corporation of The Bahamas to purchase the beleaguered government-owned Radisson Cable Beach Resort, with the intention of investing in excess of $120 million.
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The group, which proposes to renovate the resort to a four-star hotel, includes a number of ﾓprominent Bahamiansﾒ, who remain anonymous. ﾠ
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According to a weekend press statement, the Myers Group, which has managed the hotel over the past 12 years, and the Hotel Industry Pensions Funds are also part of the consortium.
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Prime Minister Perry Christie indicated during his budget communication that the government plans to obtain a net $10 million for the Treasury from the sale of the property.
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The consortium proposes that the total investment be split into three phases: ﾠPhase I is budgeted at $70 million; phase II at $45 million; and phase III at over $5 million.
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The group stated that the capital funds necessary to purchase the 700-room Radisson Resort and its properties – including the golf course and a parcel of adjacent land – are in place. ﾠIt said it is only awaiting the Hotel Corporationﾴs agreement for the purchase in order for the project to start. ﾠﾠ
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ﾓThe major investmentﾅis a commitment to keeping with the governmentﾴs declared desire for further Bahamian investment in the tourism industry. ﾠIt will also have the considerable advantage of keeping this national asset under Bahamian ownership and control,ﾒ the group said in the statement.
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Once agreed to by the government, the newly-refurbished and upgraded property would continue to be managed by The Myers Group, which is expected to secure a major international hotel brand flag. ﾠ
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ﾓThis coupled with upscale four-star guest facilities, will enable the resort to improve room rates as well as attract more group and convention business, which will provide solid year-round occupancy levels and increased revenues, thereby stabilizing employment levels at the property,ﾒ the release said.
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The consortium feels that The Myers Groupﾴs intimate knowledge of the inner workings of the resort removes the necessity for a lengthy take-over process and reduces the time required for the planning of the new facility. ﾠ
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Most of the phase I renovation of the 700 guest rooms is scheduled for completion by the end of the first quarter of 2005. ﾠIt would include, but not be limited to, a totally new front entrance, a new renovated Golf Club House, renovation of all restaurants, public areas and meeting rooms, a name-brand spa facility and the installation of the latest wireless internet capability.
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The proposal seeks to have phase II of the project begin in early 2006, which will comprise the development of 160 two-bedroom time-share units, each being 1,200-square feet in size.
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This stage of the development would reportedly be carried out in conjunction with a major international time-share developer. ﾠ
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Phase III would provide for the creation of an additional nine holes of golf and a putting course.
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President of the Bahamas Hotel Catering and Allied Workers Union Pat Bain told the Journal Sunday he throws his support behind the consortium, as long as it has the financial backing to purchase the resort. ﾠ
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ﾓI donﾴt see why there should be any preference over a Bahamian consortium who may have the same capabilities as a foreign investor and therefore our union would be totally in support of this,ﾒ Mr. Bain said.
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ﾓFor many years people have been advocating for Bahamians to own part of the tourism industry. ﾠThis is an opportunity now for this to happen.”
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The union executive urged the government to give the consortium ﾓfavourable consideration.ﾒ
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ﾓWe say, ﾑletﾴs go with the Bahamian consortium or investor who has the ability to raise the funds to make the venture a go,ﾴﾒ Mr. Bain said.
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He added that he has no problem with the Myers Group still being intimately involved in Radisson, which employs 1,100 persons.
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ﾓThe question is, are we looking for an efficient, profitable operation that would enhance our tourism product; provide employment for Bahamians at large; remove the glass ceiling so that we can now produce Bahamian general managersﾅand at the same time keep revenue in this country that could do further things?ﾒ he questioned. ﾓLetﾴs get on with it.ﾒ
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The consortium said it considers the offer and investment to be realistic.
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The group said with the funds already secured, the project could begin as early as this year, once an agreement is settled at an early date.
By Hadassah Hall, Bahama Journal
