Hotel Corp. chairman George Smith told The Guardian that "three attractive offers" are being considered for the property that has a real estate value of an estimated $130 million, according to realtors.
"We are considering all the relevant questions and the various proposals in determining which is the best offer in getting a fair price as a hotel property, one which will be able to stimulate and motivate the Cable Beach strip."
In February, Mr. Smith officially announced that six "brand name" companies from the United States and Spain expressed interest.
On Monday, he said the corporation received a lot of proposals, "some so ridiculous" that they were excluded at the onset. "Only six or seven were worthy of looking at, and that has been narrowed down to three."
As Radisson is nestled between American and Jamaican-owned properties along Cable Beach, Mr. Smith said the various proposals have factored in elevating and promoting the hotel as a revived destination.
Revealing very little about the bidders, Mr. Smith said one is a group from the United States with a well-known brand, and another involves Bahamian interests.
"We want the government to make some kind of announcement as early as possible. I am hoping that we would be well beyond the selection process by year's end."
The proposed sale of Radisson has raised questions about job security for its 900-plus employees but Mr. Smith said such issues have been factored into the proposal.
There is a norm in the hotel industry that any new owner would wish to comply with an industrial contract.
The Radisson, once managed by the Myers Group, is one of two remaining government hotels; the Lighthouse Club is located in Andros.
When the Free National Movement came to office in 1992, it vowed to relieve the cash-strapped corporation of its properties that were not making a profit.
The FNM sold the Ambassador Beach Hotel to SuperClubs Breezes, and the Royal Bahamian to Sandals, both Jamaican owners.
The government has funded the losses of the Hotel Corp. since it was established by an act of Parliament in 1974 to extend and improve the hotel and resort industry in The Bahamas.
The Hotel Corp.'s board has focused on problems at Radisson, which has resulted in a loss of about $15 million during the past year.
A clearing bank bailed out the Radisson with a $15-million loan, which the corporation used for:
* Repair of a leaking roof damaged during Hurricane Michelle;
* Appointment of consultants, who are working under the direction of the Ministry of Works and Utilities in planning and supervision of renovation of 150 rooms damaged by Hurricane Michelle and closed since November, 2001, as well as other essential repairs and refurbishment;
* Negotiations for the settlement of outstanding hurricane insurance claims dating back to 2001, to cover much of the cost of the renovations;
* Pursuit of the sale of the resort to a purchaser with the capacity to contribute significantly to the upgrading and expansion of Cable Beach tourist facilities and commercial activities;
* Completion of upgrading and redesign of the golf course, and;
* Measures to reduce the massive losses, improve financial performance and protect jobs of more than 900 Bahamians.
A contract for repairing the hotel roof was carried out by Specialised Roofing Installation Co. under the supervision of Project Management Consultants Ltd., which was retained to manage the project.
The corporation considered five proposals for the project management of the renovations and selected the lowest bidder, Alvan K. Rolle & Associates, supported by a team comprising an architect, quantity surveyor, and mechanical and electrical engineer.
They prepared the scope of works and supervised the bidding process in which seven firms participated and one withdrew. The successful tenderer, which submitted the lowest bid, was Penn's Renovations and Construction Co. Ltd.
The Hotel Corp. negotiated with Cavalier Construction Co. Ltd., the second-lowest bidder, to carrying out additional repairs and refurbishment. The Ministry of Works and Utilities provided overall supervision of negotiations, bidding, preparation of scope of work and supervision of Project Management Consultants.
Caption:THREE FOR RADISSON – The Hotel Corp. of the Bahamas is looking a three proposals for the sale of Radisson Cable Beach Resort and Gulf Club.
(Staff photo by Donald Knowles)
By Lindsay Thompson, The Nassau Guardian
