Acting PM announces New DAY DEAL FOR GRAND BAHAMA with $100m investment!

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Davis Government DELIVERS BIG NEW DAY DEAL for Grand Bahamians!

STATEMENT ON SALE OF GRAND LUCAYAN RESORT
THE HON. I. CHESTER COOPER
DEPUTY PRIME MINISTER
AND MINISTER OF TOURISM, INVESTMENTS & AVIATION
AND MEMBER OF PARLIAMENT FOR THE EXUMAS AND RAGGED ISLAND

WEDNESDAY, MAY 11, 2022

Colleague Minister Hon. Ginger Moxey Ladies & Gentlemen
Members of the Press
Let me firstly thank you for coming out to Grand Lucayan this morning for this Grand Announcement.
I want to also at the outset thank Mr. Julian Russell Chairman of LRHL, Mrs. Cassietta McIntosh – Pelecanos Deputy Chair and the Directors for the stewardship to date and for managing this
process.
Most importantly, I thank Prime Minister Davis for his Leadership and specifically for giving me carriage of Tourism, Investments & Aviation. I see it as an opportunity to make a meaningful impact to our country and the lives of the People of Grand Bahama. Today’s announcement is for the People!
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Ladies & Gentlemen, one of the key commitments of the Progressive Liberal Party and the Davis- Cooper administration has been to catalyze the restoration of Grand Bahama.
Chief among those considerations is to return Grand Bahama to state of economic health and growth.
No plan to revive the financial well-being of Grand Bahama can be crafted without the sale of the
Grand Lucayan resort as a key component.
The former administration purchased the resort in August 2018 and made a series of mistakes that left taxpayers on the hook for hundreds of millions of dollars and an ongoing monthly subsidy of $1.5m per month.
We have always believed in the viability of the property but did not believe in belonged in the hands of government.
Rather, we sought a buyer for the Grand Lucayan that was well-resourced, well-intentioned, desired to be a strong community partner, a vision for the resort and a willing partner in the shared vision for the growth of Grand Bahama .
Today, the government of The Bahamas announces that we have found a buyer for the Grand Lucayan hotel that meets all of our criteria.
Lucayan Renewal Holdings Limited, the special purpose vehicle that owns the Grand Lucayan Resort on behalf the Bahamian people, has entered an agreement for the sale of the entire property to Electra America Hospitality Group (Electra), whose principals boast over 150 years collective experience in the hospitality business.
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Electra is part of a conglomerate, Electra America, with worldwide assets worth $7 billion in significant capital holdings.
The government has accepted Electra’s purchase offer for the Grand Lucayan resort of $100 million. That’s right 100 million dollars.
Today is the beginning of the renaissance and rebirth of Grand Bahama Island.
Ladies and Gentlemen, This is truly “A New Day” for Grand Bahama.
The agreement is subject to a 60-day due diligence period, with closing no later than 120 days.
Electra has committed to an estimated $300,000,000 renovation and construction plan to rebuild the Grand Lucayan Resort into an environmentally sustainable, luxury resort.
Electra has committed to a Luxury Lifestyle Hotel with approximately 200 rooms and two-dozen villas.
Electra will also open an Upscale Convention Hotel with more than 500 rooms that will cater to group and convention markets.
An All-Suite Family Resort with more than 200 condo-hotel style suites is also planned for the property.
A refurbished golf course complemented by a new, upscale country club and golf villas are also planned.
This will be in addition to a renovated casino managed by a world class casino operator. The new resort will have at least 11 world-class restaurants and 10 bars.
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The resort hotel will have a spa and fitness facility, amenities for children, event spaces, pools and water features.
Subject to approvals, solar energy will be a major part of the property’s sustainable management strategy.
There will also be gardens on property that can provide true farm-to-table dining for guests.
Electra has committed to best-in-class recycling practices as part of its commitment to sustainability.
We expect this deal to be complete by this summer, at the latest, with renovations and new construction to begin shortly thereafter.
All renovations and construction are expected to be complete by January 1, 2025.
The resort reconstruction and relaunch is expected to create approximately 2,000 construction jobs and 1,000 permanent jobs.
At least 80 percent of the construction jobs are to go to Bahamians. At least 80 percent of the full-time jobs, must be for Bahamians.
The construction will be phased, with the hotel remaining open at all times throughout.Electra has also committed to using local artisans throughout the resort.
And Electra has also committed to the use of Bahamian live entertainment throughout the property.
All the properties will have unique or internationally renowned luxury brands. 4

We truly believe Electra will be good for Grand Bahama.
Given the Dorian experience, Lucayan Renewal Holdings Limited has agreed with the buyer to insure the first $10,000,000 of hurricane damage in the event of two named storms making landfall within the first five years of its ownership.
As a part of the purchase price, the company has pledged $5 million to the Ministry for Grand Bahama’s new unit, ‘Collab: Partnerships for Development’ for community projects and funding for Bahamians to create and grow businesses to enhance the tourism product, in conjunction with the Ministry of Tourism and the Tourism Development Corporation.
Electra has also committed to helping to assist communities impacted by Hurricane Dorian.
As airlift is a critical component to the revitalization of Grand Bahama, the government has committed to the process of rebuilding and reopening a world-class facility, by 2025.
As you may be aware, that process is underway.
With this sale to a solid, committed partner, we will recoup a significant portion of the investment of the people of The Bahamas, and put Grand Bahama on track to once again be the vibrant entertainment capital of the Bahamas.
We thank all involved for the hard work and dedication invested to successfully achieve this win for the Bahamian people and the people of Grand Bahama specifically.

Next week in Parliament, I plan to communicate the particulars of the deal in detail.

Today, we celebrate A New Day for Grand Bahama, the beginning of the return of the Grand Life to Grand Bahama.