Royal Caribbean's (RCL) - Get Royal Caribbean Group Report scuttled its plan to buy the Grand Lucayan Resort in Freeport, Bahamas, after the islands' new government "determined that the way the sale was structured was ‘not in the best interests of the Bahamian people,'" reported The Royal Caribbean Blog.
After it took office, the new government created a cabinet subcommittee to examine the sale and explore options to speed up the redevelopment of the Grand Lucayan Resort.
"The government was frankly not satisfied with what was proposed or that the project would be advanced in the short or medium term," government representatives said in a statement.
"We were not willing to continue on without a clear timeline for completion and were of the view that many of the terms were not in the best interest of the Bahamian people,"
The Bahamas Expects a Quick Sale of the Grand Lucayan
Royal Caribbean still has interest in the property and will participate in a bidding process that the government expects will happen quickly.
"The Grand Lucayan Resort has already cost taxpayers well in excess of $150 million. Talks with other potential investors will start shortly. We will keep the Bahamian people abreast of developments with this project as they occur," the statement declared.
Royal Caribbean Had Big Plans for Grand Lucayan
The cruise line had planned to redevelop the Grand Lucayan resort into a major tourist draw.
"[The plan includes] a beachfront destination, which would include a 526-room hotel, shopping village, spa, and wellness center, water and adventure park, convention center, adventure activities (such as ziplining), restaurants and bars, and entertainment," according to Royal Caribbean blog, which has no affiliation with the company.
In addition, the cruise line was expected to help redevelop the shops in the cruise ship terminal in Freeport. Those plans are off for now, but they could be revived.
"Royal Caribbean remains committed to working with the Government of The Bahamas and the people of Grand Bahama to support the government’s vision for the transformation of the tourism product and offerings in Grand Bahama," the company said in a statement.
The cruise line has invested heavily in its Coco Cay private Island in the Bahamas over the past few years adding a water park, the largest pool in the Bahamas and an upscale beach club.
It's currently developing an adults-only area on the island.
Royal Caribbean also has plans to build a destination experience on Paradise Island in Nassau, Bahamas and it has leased land to build that property.