Hotel back on the market
A multimillion-dollar agreement to revive the beleaguered Treasure Island resort is in jeopardy after the property was put back on the market.
The Canada-based Howard Hospitality Group says it is still in negotiations to finalize a deal, agreed in principle in May, to buy a controlling stake in the property.
The group previously announced plans to invest $70 million in renovating the venue on West Bay Road.
Michael Wilkings, chief operating officer of Howard Hospitality, said Thursday that those plans had not changed and negotiations were continuing. He said he was unable to comment further.
The 280-room hotel was put on the market by realtor RE/MAX this week with a list price of $15.475 million.
Current owner Restoration Cayman was put under receivership in November last year at the request of secured lender Scotiabank. The hotel was listed for sale in February but was taken off the market when the company announced it had agreed to the deal with the Howard Hospitality Group.
Kim Lund of RE/MAX said the property is now back up for sale and open to anyone to buy. He said there were no restrictions or priorities on the sale, despite the previously announced agreement.
“It was taken off the market because it appeared there was going to be a solution, but we have had instructions to put it back on the market and it is actively for sale,” he said.
In May, the Howard Hospitality Group announced it had agreed to buy a controlling stake in the hotel, with Restoration Cayman maintaining a minority stake.
“It is a fantastic asset in a great location that requires a lot of vision and imagination to figure out what to do with it,” Mr. Wilkings said at the time. “If you can see past what is here today and imagine what it could be with good design, good branding and significant investment, the potential is fantastic.”
The RE/MAX listing advertises Treasure Island as an “undervalued opportunity in a prime location for an astute investor to change the business model,” citing an opportunity to develop the current hotel to “gross approximately $60 million.”
It also highlights another potential opportunity to demolish the property and develop two 10-story towers for a new resort.