The country\uffb4s leading resort developer and largest private employer, Kerzner International, yesterday reported a net loss of $11.2 million in the third quarter of 2004 and expressed doubts about proceeding with certain elements of the $1 billion Atlantis expansion.<\/P><\/p>\n
Kerzner International\uffb4s Chief Executive Officer Butch Kerzner made the disclosure during the company\uffb4s quarterly conference call, at which time he admitted that the quarter losses were mainly the result of Hurricane Frances.<\/P><\/p>\n
The company also reported that it has continued construction of Marina Village and an extension to the Harborside at Atlantis development.<\/P><\/p>\n
Officials of Kerzner International say they will determine in December whether to proceed with the Phase III expansion of Atlantis. (Photo by Omar Barr)
\nBut it said it has until December 31, 2004 to determine in its discretion whether to proceed with the remaining elements of the Phase III expansion that it has not commenced.<\/P><\/p>\n
\n\uff93The company\uffb4s determination will depend on the assessment of many factors, including global economic and political conditions, the regional competitive environment, financing and the Government of The Bahamas\uffb4 proceeding with its commitments under the Heads of Agreement,\uff92 Kerzner International said in a statement.<\/P><\/p>\n
The company reported that Hurricane Frances, which passed just to the north of Paradise Island, as well as subsequent hurricanes and tropical storms that hit the state of Florida, negatively impacted business in the week preceding Labor Day and in the weeks thereafter. This resulted in lower overall business levels in September, Kerzner officials reported.<\/P><\/p>\n
Prior to this, Kerzner International\uffb4s business trend had been \uff93very\uff92 positive with company officials forecasting a 15 percent increase in earnings and earnings per share between $0.27 and $0.31 cents.<\/P><\/p>\n
Here\uffb4s the big picture,\uff92 Mr. Kerzner said, \uff93business during the quarter was running along extremely well, Paradise Island had a great July and a great August.<\/P><\/p>\n
\uff93We were running at 90 percent occupancy during these periods. But stating the obvious, because of all the hurricane activity that we had during the month of September \uff96 which is normally our slow month \uff96 this was not a great month for us.\uff92 <\/P><\/p>\n
During this quarter, the company\uffb4s flagship brand, Atlantis consequently saw a slip in its earnings, reporting a net revenue of $106.5 million, when compared to the same period last year when the hotel boasted earnings of $114.8 million.<\/P><\/p>\n
Atlantis\uffb4 revenue per available room for the quarter stood at $173 when compared to $177, representing a two percent decrease over the same period last year.<\/P><\/p>\n
Meantime, the company\uffb4s One & Only resorts segment, which includes the Ocean Club Resort, saw its earnings increase to$19.9 million from the $8.9 million recorded during the same period in 2003.<\/P><\/p>\n
Kerzner\uffb4s costs associated with Hurricane Frances were pegged at $4.6 million, which primarily consisted of clean up and repair costs, complimentary goods and services to guests of $3.4 million and a loss on damaged assets of $1.2 million, according to company officials.<\/P><\/p>\n
Just prior to the storm \uff96 up to August 30 \uff96 the hotel\uffb4s leisure business was reportedly up by 22 percent. A few weeks later, it plummeted to five percent.<\/P><\/p>\n
Despite recent hiccups, Kerzner officials admit that Atlantis has rebounded nicely heading into December.<\/P><\/p>\n
\uff93We\uffb4re noticing pretty strong trends,\uff92 Mr. Kerzner said.<\/P><\/p>\n
He added, \uff93This past Sunday, we are also on the cover in the story of the New York Times travel section indicating the effects of the storms on the Caribbean\uff85So this is really a momentum that we had prior to September.\uff92<\/P><\/p>\n
Macushla N. Pinder, The Bahama Journal<\/SMALL><\/P><\/p>\n","protected":false},"excerpt":{"rendered":"
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