KINGSTON, Jamaica, Saturday July 22, 2017 – Sandals has put to rest reports that it was in search of a buyer for its luxury properties two month ago.
In fact, far from looking for a buyer, it has been searching for favourable financing on Wall Street to expand its brand name product.
According to Chief Executive Officer Adam Stewart, Sandals is now looking to build as much as a dozen new hotels, the biggest expansion in its history.
“We’re open to taking on more debt to build more than one hotel at a time. We want to build three or four hotels a year,” Stewart told Bloomberg.
“We are trying to look for bigger capital to grow. We know exactly what to do and how to do it. But up until now we’ve been restricted by the balance sheet of regional banks.”
Stewart revealed that the company, which owns and operates 23 resorts across seven Caribbean islands, is in talks with Deutsche Bank and others to raise money as it weighs new projects, including the construction of four hotels next year.
But he stayed clear of saying how much Sandals is seeking to borrow.
The projects earmarked include a 580-room Sandals Royal hotel in Barbados and around $500 million to construct a resort on the island of Tobago in the southern Caribbean.