NASSAU, The Bahamas – Deputy Prime Minister and Minister of Tourism, Investments and Aviation the Hon. Chester Cooper tabled a Communication on the Sale of the Grand Lucayan resort, in the House of Assembly on Monday, May 16, 2022.
This comes on the heels of a major announcement made last week in Freeport, Grand Bahama that the Government secured a partner to purchase the property.
On May 11, the Government of The Bahamas and Electra America signed a Memorandum of Understanding and a Heads of Agreement for the purchase of the Grand Lucayan Resort.
“There is no overnight fix for Grand Bahama’s economy and there is no singular remedy for Grand Bahama’s economic quagmire,” the minister told the House of Assembly.
“However, what is clear is that tourism is a critical part of the way forward for Grand Bahama and we need to methodically approach the situation with a bird’s eye view, but being intentional about putting all the pieces into place. The driving force behind our mission was to do what is best for the people of Grand Bahama. And in that vein, I believe we have succeeded,” he said.
According to the deputy prime minister: “We have found a socially responsible partner who will work with Grand Bahamian people, the Ministry for Grand
Bahama and the government to provide jobs, help create entrepreneurs and assist with the long-term vision of the Tourism Development Corporation.
“We are very proud of what has been accomplished so far, and there is much more to come for Grand Bahama and The Bahamas under this New Day administration.
The government has accepted Electra’s purchase offer for the Grand Lucayan resort of $100 million. An upfront deposit of $5 million will be paid immediately on execution of the definitive purchase agreement and will become non-refundable at the end of the 60-day due diligence period. And, the balance of $95 million will be due at closing, which has been agreed at no longer than 120 days from the execution of the MOU.
“The government has committed to standard concessions under the Hotels Encouragement Act,” the minister confirmed, adding that Electra has committed to an estimated $300,000,000 renovation to rebuild the Grand Lucayan Resort into an environmentally sustainable, luxury resort.
“Not only does Electra have a plan for the resort, but it has a vision for its future in Grand Bahama that includes the growth of the overall economy and community,” he said.
Electra has committed to a Luxury Lifestyle Hotel, and all renovations and construction are expected to be complete by January 1, 2025.
The resort reconstruction and reopening is expected to create approximately 2,000 construction jobs and 1,000 permanent jobs.
“At least 80 percent of all jobs are to go to Bahamians,” the deputy prime minister said.