Baha Mar appears to be moving forward with a new phase of its Cable Beach redevelopment, preparing to shut down the Nassau Beach Hotel in January, a move that has its flagship tenant charging the company has failed to make good on “promises” of alternative space during and after construction.
On Saturday, the developer’s reservations department confirmed that it has now stopped taking any bookings for the Nassau Beach past Dec. 2. According to its original plans that property is to be demolished in order to make way for a new facility. In the process, the adjacent Cafe Johnny Canoe will also be torn down as part of that early plan.
Co-owner of the restaurant Harry Pikramenos told Guardian Business Saturday that Baha Mar handed him a final eviction notice last month putting an end to his company’s 15-year relationship with the hotel.
The restaurant must be moved out of the premises by the end of next month, almost three months earlier than Baha Mar had earlier suggested, he said.
“We’ve been the anchor tenant that has kept this hotel open,” said Pikramenos, a Bahamian entrepreneur sharing the business with his brother Mike. “We had been negotiating with these people for the last two to three years — they assured us that we would be offered a space in the new property and given an interim location for our restaurant during the construction.
“Currently, I think, they have no intention of asking Johnny Canoe to come back and there has been no space finalized for the interim location.”
Guardian Business calls to Baha Mar — both in Nassau and Florida — were not returned last weekend.
The absence of a formal deal between the developer and Pikramenos’s Bahamian-themed restaurant means it will likely be forced to let go of its remaining 50 to 60 employees when operations cease in the last half of January.
Reactivating those jobs depends on Johnny Canoe finding suitable accommodations off the strip, something Pikramenos has been scrambling to do. The brothers, also owners of the El Greco hotel, have had little success finding a location that would allow them to duplicate the restaurant’s winning formula of combining native cuisine with a Junkanoo atmosphere, replete with a group of rushers. The eatery is a favorite of both locals and tourists, alike.
Its strategy has been duplicated across the island — even at the restaurant attached to El Greco. Ironically that space, leased only months ago, is now unavailable to the Pikramenoses.
The family argues there was no real need to find space for Johnny Canoe off Cable Beach given what it charges was Baha Mar’s earlier promise to put the restaurant in premises now housing a deli within the adjacent casino complex. Pikramenos said he has no written conformation.
Still, he said that the development company indicated the restaurant would later become an anchor for a Marina Village-style entertainment center — “Pompeii.” A promenade, not unlike that at Atlantis, would link restaurants and shops, creating a destination in and of itself.
Baha Mar’s planned shutdown of the Nassau Beach is the latest indication it and partner Harrah’s Entertainment intend to move ahead with their $2.3 billion project focused on transforming the hotel strip.
So far they have largely restricted themselves to undertaking cosmetic work — some of it still ongoing — at the neighboring Sheraton and Wyndham properties.
Outside of announcing government approval for a key road diversion project, both sides of the negotiating table have been mum on the progress of talks designed to produce a supplemental heads of agreement.
The previous government stopped short of signing such a deal months before the May election, charging it wasn’t prepared to agree to the full host of concessions sought by the development partners.
While the prime minister’s office has indicated it remains in negotiations with Baha Mar, no announcement about a successful conclusion to those key talks has yet been announced.
The absence of that deal and others has led to concerns across the construction sector that the economy has hit a snag.
The IMF, in fact, lowered its own forecasts for GDP growth in The Bahamas this year. It was a decision based, in part, on the apparent lack of progress at what is slated to be the single-largest development project the country has ever seen.
Baha Mar readying to close the Nassau Beach may mean that it has finally won the concessions it sought from government. If so, it will likely face immediate calls to make the terms of that deal public.
But that may do little to resolve the uncertainty now facing Pikramenos as he prepares to end a lease that has arguably been the hotel’s most important.
“Anything that you create and then is taken away from you that hurts,” he said Saturday. “Baha Mar wants us out.
“That blows my mind.”
Source: Nassau Guardian