Jalousie to Change Ownership and Expand
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Jalousie to Change Ownership and Expand |
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contact: Earl Bousquet Tuesday, June 22, 2004 - Prime Minister Dr Kenny D. Anthony has announced an impending change of ownership and expansion of the Jalousie Hilton resort in Soufriere. In a statement to the House of Assembly on Tuesday, Prime Minister Anthony announced that after a series of searches for an equity partner to invest in the hotel’s operations to enhance its viability and expansion, the Kerzner International group of South Africa has indicated strong interest in investing in the hotel’s operations. Prime Minister Anthony recalled that the Government of St. Lucia in 1996 invested EC$4 million in purchasing equity shares in Jalousie, a sum which increased later to EC$5 million. He noted that the Government of St. Lucia, the Hilton chain and the M Group are the three major shareholders, but that the Kerzner and M Groups have indicated they intend to raise an estimated capital budget of between US$45.5 million and US$68.8 million for the hotel’s recapitalization and room expansion. According to the Prime Minister, the Hilton Group has agreed to sell its shares to the M Group for US$4 and the M Group has offered to purchase the government’s shares in Jalousie for US$5 million. Dr Anthony noted that the Jalousie hotel is now valued at US$13.8 million and with current outstanding liabilities of US$15.4 million, the Government of St. Lucia would stand to lose the entire US $5 million invested in it if the company was sold as is. The Prime Minister said it appeared that the offer to the government to recover the original price paid for its shares was the most viable option at this time. Kerzner International, which would become the major shareholder under the new arrangement, is well known in the international hospitality industry. The group operates under the “One and Only Resort” brand name and are owners and operators of the Atlantis Hotel & Casino in The Bahamas. The group also owns and operates the Sun International group of hotels in South Africa, Resorts International in Atlantic City and the One and Only Resorts in the Middle East. It is the intention of the Kerzner Group to develop the Jalousie Hilton resort into the One and Only Jalousie Plantation, St. Lucia with vacation homes, fractional ownership properties and housing lots on the surrounding residential lands. Prime Minister Anthony indicated that principals of the M Group and Kerzner International will be visiting the country shortly to engage government officials and others in discussions on the future of the hotel. He further indicated that in due course, he expects to have more definitive
information on the absolute dates of the change of ownership at Jalousie, the
refurbishment of existing rooms and the construction of the new rooms. |
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