Kerzner International announced yesterday that in early November it agreed to acquire an additional seven and a half acres of beachfront property at the eastern edge of Cabbage Beach, adjoining Ocean Club Estates, for $15 million.
“This is one of the few remaining undeveloped beachfront parcels left on Paradise Island,” the company noted in a statement. “The company intends to contribute this land into the Ocean Club Residences & Marina joint venture and develop the site through the joint venture.”
In the third quarter of 2005, the company also acquired the Hurricane Hole Marina, which is in close proximity to the Marina Village and includes frontage of Nassau Harbour, and some additional buildings and facilities for approximately $28 million.
Kerzner said it intends to utilize the Hurricane Hole Marina to accommodate excess demand at the Atlantis Bahamas Marina and anticipates significantly upgrading this marina and brining it into Atlantis’s product offering. This acquisition includes additional real estate, which the company plans to use for new development.
The company also said construction of the $730 million Phase III development at Paradise Island is proceeding.
This expansion project, which includes a 600-room all-suite hotel and expanded water attractions, is expected to open in the second quarter of 2007.
In July, the company completed the Marina Village at Atlantis, an approximately 75,000 square foot restaurant, retail and entertainment zone surrounding the Marina at Atlantis, which includes five new restaurants and additional retail space.
All of the restaurants except one are open, and the remaining location is expected to open in mid-November.
In July, the company completed the Marina Village at Atlantis, an approximately 75,000 square foot restaurant, retail and entertainment zone surrounding the Marina at Atlantis, which includes five new restaurants and additional retail space.
In the quarter, food and beverage revenue increased by 22 percent as compared to the same period last year, driven by a rebound in business levels from the previous year and a favourable response to the Marina Village, Kerzner International said.
The second phase of Harborside at Atlantis, a timeshare joint venture between the company and a subsidiary of Starwood Hotels & Resorts Worldwide, Inc., which consists of 116 two and three-bedroom units, was completed in August.
The company said sales trends for this second phase have remained strong and it is now 32 percent sold. With this phase, the total number of units at Harborside increased to 244.
Kerzner International also reported a net loss of $4.9 million in the third quarter of 2005 compared to a net loss of $11.2 million in the same period last year.
Atlantis, meanwhile, reported net revenue in the quarter of $129 million compared to $106.5 million.
“Results in the quarter were meaningfully higher than in the same period last year, as 2004 was negatively affected by Hurricane Frances and the effects of subsequent hurricanes that hit the State of Florida, one of our principal source markets,” the company said in a statement.
Atlantis’s revenue per available room for the quarter was $198 as compared to $173 during the same period last year, the statement added.
In the quarter, Atlantis achieved an average occupancy of 81 percent and a $245 average daily room rate. Results in the quarter benefited from strong leisure demand, the company said.
At the Atlantis Casino, slot win for the third quarter increased by 24 percent and 15 percent over the same period in 2004 and 2003, respectively, the statement also said.
“The third quarter of 2003 provides a better comparable period, as 2004 was negatively affected by the aforementioned hurricanes,” it said.
“The resort benefited from improved levels of play owing to the positive reception of the new slot games and the ticket-in-ticket-out system, both of which were introduced last year. In the quarter, table win increased by 15 percent and decreased by 16 percent over the same period in 2004 and 2003, respectively.”
Howard Karawan, president and managing director of the company’s Destination Resorts segment, commented, “Third quarter results rebounded sharply from the hurricane-affected results of the third quarter of 2004. As compared to 2003, the most recent period in which results were not impacted by hurricane activity, all of our key operating measures for the Paradise Island businesses saw improvement.”
By: Candia Dames, The Bahama Journal
