Sunwing Purchases Half of Rex Resorts
Thursday 29th November, 2018-Canadian company Sunwing Travel Group has purchased 50% of the ownership of Rex Resorts.
Sunwing has proposed to develop the Halcyon Cove Resort to a 3½ Star Hotel, to build 200 additional rooms and invest $80 million dollars. Sunwing will increase its flights to Antigua by two flights weekly in order to ensure more than 80% occupancy of the Halcyon Resort.
The company has agreed to collaborate with the Government in setting-aside 5 to 8 acres of the 25 acres held by Halcyon, for entry of 100 nationals into the rental luxury-house industry.
The Cabinet has reportedly made a few alternative proposals which will be presented to Sunwing on Thursday, November 29, 2018.
Sunwing Travel purchased the Royal Antiguan Hotel for US$27 million dollars. The new hotel to be called the Royalton is scheduled to open in February 2019.
Sunwing Travel is also managing the Jolly Beach Hotel, and has maintained more than 80% occupancy during the traditionally slow summer season, according to reports.
The Halcyon Cove Resort, owned by the Government of Antigua and Barbuda, was leased to Rex Resorts for 99 years in 1989. However, the Government moved to end the lease before its conclusion, since it was certain that Rex Resorts failed to abide by the lease terms. The matter was litigated and the Government emerged victorious at the High Court level.
Rex Resorts has entered an appeal.
It is expected that Sunwing’s purchase will end the appeal process.