Caribbean hurricanes sandals Resorts that are scaring
How a town may be washing away $1.4 billion in park redesign
A bid to offer the Caribbean’s biggest resort string is operating into headwinds — and hurricanes are at fault, The Post has discovered.
Sandals — whose all-inclusive resort hotels take over the Caribbean resort scene — is wooing suitors for the two-dozen holiday properties spread across seven tropical-island nations.
The franchise that is family-owned started by previous appliance salesman Gordon “Butch” Stewart in Jamaica in 1981, is angling for the $4.5 billion bid, insiders say.
But because the due-diligence procedure winds straight straight down, some suitors are growing skittish over the cash they might need to fork out to guard the properties against violent storms, a source near to the auction stated.
“It may seem like individuals are getting weak-kneed about making bids,” the supply told The Post. “The concern is: what’s going to end up being the regards to the insurance coverage.”
Sandals reps have actually described to suitors that its resorts have actually escaped a bout that is unprecedented of harm reasonably unscathed, a supply stated.
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But their happy history won’t help reduced expenses by much, professionals said.
Hurricane insurance costs throughout the Caribbean are 50 % greater than two years ago — and 100 percent greater in the event that insured has recently experienced significant damages, based on Ryan Barber, a managing director of insurance coverage giant Marsh. Deductibles have actually swelled to 5 per cent of total damages versus 3 % two years back, he stated.
“You will get discounts done now, but the price is now incredibly costly,” Barber stated.
Sandals is placing it self on the auction block at time whenever hurricanes are damaging the Caribbean in unprecedented waves.
