A Hotel Corporation executive yesterday brushed aside speculation that the sale of the beleaguered government owned Radisson Cable Beach & Golf Resort has hit a snag, instead pointing out that ﾓeverything is being doneﾒ to complete the sale.
ﾓThe various elements are doing what they should do and all the ducks are falling in place,ﾒ Hotel Corporation Chairman George Smith told the Bahama Journal Thursday.
ﾓAnd so, I am extremely encouraged by both the process and progress. In the end, the Radisson will do justice to the Cable Beach strip, creating something Bahamians will be proud of.ﾒ
A proposal from the Bahamian consortium interested in purchasing the hotel would split the hotelﾴs total investment into three phases, the first budgeted at $70 million, the second at $45 million and the third at over $5 million.
Most of phase one of the 700-room property is expected to be completed by the end of the first quarter of 2005.
This upgrade would include a new front entrance, a new renovated Golf Club House, renovation of all the restaurants, public areas, meeting rooms and the installation of the latest wireless internet capability.
Phase II of the project would begin early 2006, comprising of 160 two-bedroom time-share units. Phase III would provide for the creation of an additional nine golf holes and putting course.
But the group, which has said that capital funds to purchase the property has already been secured, must await the Hotel Corporationﾴs approval for the purchase.
Mr. Smith did not say whether the consortium is the frontrunner to purchase the hotel.
Under the consortium, the upgraded property would continue to be managed by the Myers Group, headed by George Myers.
A source close to the negotiations has however expressed much skepticism that the hotel will actually be sold.
ﾓI am certain that the government is making a legitimate effort to find a buyer, but we have to make sure the right person is chosen,ﾒ the source told the Bahama Journal yesterday.
ﾓSo, I donﾴt see a sale imminent as has been suggested. To date, there has been no indication who the potential buyer would be other than the fact that George Myers feels he ought to be given first preference to purchase the hotel.ﾒ
The source further revealed that Mr. Myersﾴ bid to purchase the cash-strapped hotel would be strongly rejected by the Bahamas Hotel Managerial Association (BHMA).
ﾓMr. Myers has already indicated his plans to close the hotel and effectively terminate all the workers,ﾒ the source explained.
ﾓHis position is very clear. He has also publicly indicated that he wants to use a portion of the workersﾴ pension to purchase the hotel. That would certainly not be in the best interest of Bahamian workers. Why canﾴt he buy the property with his own money? There is no problem with this.ﾒ
The source also second-guessed Mr. Myersﾴ ability to turn the hotelﾴs finances around after 18 years of not making any money.
ﾓThe Radisson is losing millions of dollars, so why would any reasonable, rational person or any government believe if he (Myers) purchases it, he can find a new formula for success,ﾒ he said. ﾓQuite frankly, I donﾴt think he ought to get it.ﾒ
Hotel Union President Pain Bain said he would support the consortium as long as it has the financial backing to purchase the Cable Beach property.
Macushla N. Pinder, The Bahama Journal
