Posted by: travadmin on Oct 26, 2003 – 12:33 PM
business It’s a success story that undoubtedly comes as welcomed news as Kernzer International forges ahead with its much anticipated $600 million expansion of the Atlantis Paradise Island Resort – its flagship property.
On Thursday, following a string of announcements regarding acquisitions and monumental development plans across the globe, the company released its earnings report for the third quarter of 2003.
“It was another big performance for Atlantis,” Deutsche Bank analyst Marc Falcone told Reuters News Service.
Net income was $6.5 million compared with a loss of $0.4 million a year ago.
Company President Butch Kerzner said for the second consecutive quarter, Paradise Island reported record levels of gross revenue.
The company’s Paradise Island operations achieved record third quarter gross revenue of $117.7 million as compared to $112.5 million over the same period last year.
“We had a terrific summer at Paradise Island as Atlantis benefited from strong demand in the leisure and casino businesses,” Mr. Kerzner said in a press release.
Indeed, Kerzner International continues to defy the odds while the local hotel industry faces what Bahamas Hotel Association President Jeremy MacVean called the worst period in many years.
While business levels at Atlantis were below last year in September, primarily from an anticipated decrease in group business, occupancy results for August were the highest ever achieved for that month since the opening of Phase II in late 1998.
Atlantis benefited from a strong July and August as occupancy was 94 percent and 92 percent respectively.
The resort’s revenue per available room for the quarter was $177 million as compared to $176 million in the same period last year.
In the quarter, the property achieved an average occupancy of 79 percent at a $225 average daily room rate, which compares to an average occupancy of 82 percent and room rate of $214 in the same period last year.
The company recently started its Phase III expansion of Atlantis with the commencement of construction of three new luxurious villas to the exclusive Ocean Club Resort.
Phase III will also include a Marina Village, which includes new restaurants and retail space to be developed around the Atlantis Marina, along with an expansion to Harborside at Atlantis.
Harborside will add approximately 120 two-bedroom suites to the existing timeshare project.
Construction on the second phase of Phase III, which includes a 1,200-room hotel, is expected to begin by the end of 2004, with completion expected by Christmas 2006.
In the quarter, the company announced that it had entered into an agreement to acquire assets of Club Mediterranee on Paradise Island for approximately $40 million.
This resort, which includes an existing 306-room hotel, spans Paradise Island between Nassau Harbour on the south side and the ocean on the north side with a prime beach front location.
By Candia Dames, The Bahama Journal