Hotel developers borrow cash in Bahamas

| 10/03/2019 | 25 Comments
Cayman News Service

Pageant Beach development proposal

(CNS): The developers behind a proposed five-star, 350-room hotel on the seven-acre Pageant Beach site at the southern end of the West Bay Road have borrowed $22.5 million from a financing company based in the Bahamas, according to a press release from the lenders. The bridge financing is coming from a fund managed by Sterling Global Financial. The hotel, which when completed will be a Grand Hyatt brand, was given planning permission over one year ago, but although there has been preparation work at the site, construction has not yet started and it is not clear when the project will be completed.

Speaking about the loan for the project, Sterling Global Financial Chairman David Kosoy said it took 10 days from introduction to advancing a first mortgage on the project.

The developers have said the hotel will include a 12,000 sq.ft wellness spa, three swimming pools, six bars and restaurants, retail space, and 25,000 sq.ft of indoor conference and meeting areas that will be the largest facilities of their kind in the Cayman Islands, once the project is finished.

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Category: Business, development, Local News, Tourism

Comments (25)

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  1. Anonymous says:

    Meanwhile, our Cabinet are pontificating their openness to green-light much higher structures. How much do you want to bet the old 10 story doodle bears no resemblance to the current development plan? Congratulations, your “top-floor” penthouse deposit is now mid-sandwich floor with a who’s who of comp’ed MLA graft units above you. Same thing happened on Ritz.

  2. Anonymous says:

    Rooftop parking?

  3. Anonymous says:

    if I am not mistaken, HHG is no longer a part of Margaretville. Its a good darn thing too it still would be under construction. Government needs to look into the company HHG , just saying they don’t have a good name on the Island anymore .

    • Anonymous says:

      The CIG have never done any due diligence on any real estate developer in the history of the Cayman Islands. They cut their own deals in the backroom with their personal calculators, literally in some cases “paving the way” for the developer, and hope that it all somehow comes together, so they can personally benefit. The bigger the scheme, the more zeroes, the better.

  4. anonymous says:

    The song Bridge over Troubled Water keeps comong to mind, I wonder why?.

  5. Anonymous says:

    So they borrowed from the Chinese?

    • Anonymous says:

      Yes and part of the deal is that CHEC along with a front local construction company will be doing the work as well.

      • Anonymous says:

        Interesting you should mention CHEC, the guy who helped the Chinese screw the Bahamian investors in BahaMar, lives here and inevitably has his fingers somewhere in this pie.

    • Anonymous says:

      At least now we can be certain that the wild dog problem will quickly be brought under control.

  6. Anonymous says:

    Does Margaritaville and Locale come to mind for this bank or anyone in Cayman?..HHG couldn’t make either of these happen and now they want to build that monstrosity..

  7. Anonymous says:

    40% SOLD !! 50% SOLD !! and yet no financing in place to begin construction. Investors see advertisements of a finished building including the happy tourists by the pool. Some advertisements are so life-like you’d think the buildings were built and yet there is no caption of ” artist rendering “. Didn’t something like this happen out East?

  8. Anonymous says:

    “It took 10 days”

    Tells you all you need to know.

    • Anonymous says:

      Could this be the same organization that was helping Mac with govt’. financing a few years ago? Private jets and all.

  9. Anonymous says:

    This is a long, long way from ever getting built and open for guests. The Mandarin, Barefoot Beach, Ironwood come to mind. I’m afraid this might just end up being another banner on a chain linked fence.

    It’s a dense development without a sandy beach (ironshore). Totally inconsistent with mass market Caribbean vacationers.

    It’s a nice piece of land with a great view. But makes more sense for low density 2-3 story condos for residents than an ultra dense large hotel.

    HHG is overseeing this, an entity that “agreed” to move on from the Treasure Island redevelopment and finally sort of finished the small Locale development (in front of Laguna Del Mar). I wouldn’t risk my money on this (…are the reported “sales” real third party sales or just developer purchases to give appearance of activity?).

  10. Anonymous says:

    Why do all the future hotels resemble the Kimpton???

    • Anonymous says:

      Architectural creativity is not a strong point of developers on Grand Cayman. All that counts is build the cheapest way possible and meet the minimum standards required.

      Grand Cayman for a relatively wealthy island in the Caribbean, has some of the most boring architecture in the Caribbean as developers move to replicate South Miami Beach on Seven Mile Beach and area.

  11. Anonymous says:

    Pipe Dream!

  12. Anonymous says:

    So why they could not get financing here?

  13. Anonymous says:

    HHG have a great track record in Cayman, let’s hope they manage this project better than they manager Margaritaville

  14. Anonymous says:

    If they are borrowing from Sterling they must be desperate

  15. Anonymous says:

    So we’ll see this around the same time as Beach Bay and Ironwood. Soon come.

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