Submitted by Due Diligence
After reviewing media reports over the past couple of years I have updated my chronology of the Sandals/Almond saga, with particular attention to the Heywoods property.
Bernie Weatherhead
Paul Doyle
To summarize:
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In April 2012, Almond Beach Village closed its doors to guests sending 500 workers on the breadline.
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November 2012 Neal & Massy Group CEO, Gervase Warner, revealed three private sector parties, Jamaica’s Sandals Resorts headed by Gordon Butch Stewart, a group led by local businessman Bjorn Bjerkhamn, and Paul Doyle’s Crane Resorts had all submitted bids to buy the St. Peter hotel. The original trio had been reduced to one “preferred buyer” and the necessary paper work to complete the transaction was underway. Sources said Paul Doyle of The Crane was the front-runner.
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Apparently, some time in early/mid 2013 Cabinet decided that because the Crane proposal was quite similar to the existing Crane model, which involves building accommodation based on sales and would therefore take a full decade to fully realise its potential; it would fail to achieve increased visitor arrivals in the next few years and would not assist Barbados in protecting its airlift. Cabinet decided the Sandals proposal would better suit the national interest – in the short term.
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But, as the Sandals “proposal” apparently did not contemplate using its own capital to purchase the Heywoods property, in September 2013, the Freundel Stuart Cabinet determined it would purchase the property from Neal and Massy for US$53 million, with an initial cash payment of US$25 million and the balance of US$28 million being paid over three years at an interest rate that is still to be agreed between the two parties. Additionally, Cabinet determined that Sandals be given the nod to operate and manage a rebuilt Almond under the Beaches brand, with an option to purchase the property at a future date, and instructed the Barbados Tourism Investment Inc. to work with Sandals Resort International “to have a Sandals Beaches Resort in Barbados within three to four weeks”. Think this should be three to for years,
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October 2013, in a Ministerial Statement MOT Sealy announced the signing of a Memorandum of Understanding with Sandals Resorts International (SRI) for the development of Sandals Beaches at Heywoods.” He added that Sandals Beaches will initially be owned by the Government of Barbados, but Sandals Resort International has received an option to purchase this property. Further the purchase and development of Sandals Beaches will require expenditure in excess of BDS$500 million. And, we are in discussions with the People’s Republic of China for the provision of concessional funding for this project”.
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Now, in the January 24, 2014, edition of the Nation, Bernie Weatherhead Chairman of Sun Group Inc., says Sun has a commitment from the Government of Barbados to operate or manage Almond Village (Heywoods) up until April/May 2015, at which time the Government may go through with the contract with Beaches.
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So, according to Bernie, Sun has the Heywoods property locked up until May 2015, so the bulldozing of the existing plant cannot start until then. He says ““We’re going to demonstrate that this hotel can run at high occupancy and to make money for the Government”.
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With Sun having the property locked up until May 2015, how does the Sandals/Beaches “proposal” achieve increased visitor arrivals and assist Barbados in protecting its airlift in the next few years
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What are the details of the contract with Beaches, the MOU with SRI (Butch) for the Heywoods property?
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Has the Government been able secure the China financing for $500 million?
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Can Government opt out of the deal with Butch if Bernie can make Almond Village work to the benefit of the owners; or can Butch walk away from the deal if he changes his mind?
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Either way, one of the major players in the tourism business, Bernie or Butch, is going to be really pissed at Government in April 2015.
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The, owners of the property, the taxpayers, deserve to know the details of the MOU.
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And of course, with bulldozing of the existing plant delayed until at least May 2015, a new Beaches plant at Heywoods can not be contemplated until 2017/2018. So, the Sandals/Beaches deal will not increase visitor arrivals i and would be unable to assist Barbados in protecting its airlift n the next few years.
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Maybe the Crane proposal was not so bad after all.
And, I have asked before, which party bought Casuarina; Sandals or GOB? and how much was paid?
The blogmaster invites you to join the discussion.