Kerzner International – and by extension its shareholders – will have to cover the estimated $10-$12 million costs the company will incur due to Hurrican Frances, it was revealed yetserday, as the firm’s insurance deductible is set at $15 million.
The company’s Paradise Island properties suffered “no material damage” from the storm, and Howard Karawan, Kerzner International’s executive vice-president and chief marketing officer, said that although assessments were still being carried out, “given the preliminary estimates we do not anticipate having an ainsurance claim at this time.”
Mr. Karawan told Wall Street analysts yesterday during a conference call that the “estimated total cost impact to the company” would be broken down into $4 – $5 million for business interrupttion – guest reservations and business cancelled due to the hurricane – with repairs and replacement of property and equipment damaged by Frances set to cost a further $7 million.
Mr. Karawan said Kerzner International’s Paradise island properties had “weathered this event quite well and are coming out quite strongly.”
Neil Hartnell, The Tribune
