Hard Rock International is reportedly considering teaming with the Wynn Group and Sunwing/Memories to try to acquire the Memories Resort & Spa at Freeport on Grand Bahama Island for 0 million from Hutchison Whampoa.
This has prompted the government to pledge to spend $2.5 million on repairs to the resort to make the reopening happen faster, possibly by April. This was confirmed by Minister of Tourism Obie Wilchcombe in an interview with Tribune Business last week. It had been hinted at by Prime Minister Perry Christie when he spoke of increased activity at the hotel, which is currently closed due to damages from Hurricane Matthew, a category 4 storm that hit the island last fall.
Wilchcombe told the newspaper Hutchison Whampoa had been awaiting payments on an insurance claim before starting the repairs. He told the Tribune Sunday: “The insurance is taking a while longer than expected, so we’re trying to move things forward more quickly.”
The government funds will help move that along, he said. Christie has reported told others that the government is willing to provide as much as $20 million in bridge capital to make the reopening happen.
The storm closed the 1,500 rooms on the island and hurt the local tourism economy, including the economy of the entire Grand Bahamas. The storm hit just as Hutchison Whampoa was trying to sell the property. Hutchison Whampoa/Cheung Kong Properties has reportedly lost up to $20 million each year since the resort opened in 2001.
Wilchcombe confirmed that Memories/Sunwing was working with Hard Rock and the Wynn Group. He told Tribune Business: “They’ve been trying to put a package together to present to Hutchison, and expect to get some return. It wouldn’t be a bad group to put together.”
The Wynn Group of Canada has explored investing in the Bahamas for several years. This organization has no connection with U.S. based Wynn Resorts.
Despite reports that it was thinking of pullout out, the Tribune quoted SunWing that it is “Committed to operating in Grand Bahama, and continues to support the destination through our airlift and tour operator support.”
