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PwC identifies potential buyer for former Hedonism III

Published:Wednesday | April 25, 2012 | 12:00 AM

PricewaterhouseCoopers has identified a preferred buyer for the former Hedonism III hotel held by Runaway Bay Develop-ment Limited.

Bids closed January 30 after a second try at recruiting a buyer.

"A preferred bidder has been selected with whom we are presently holding discussions," said PwC partner Peter Pearson.

"There will be no need to advertise again if the present discussions are concluded satisfactorily," he told Wednesday Business.

The bidder was not identified.

The hotel is currently operating under short-term lease by the Royal Decameron hotel group, which had indicated that it was likely to have bid for the 225-room property, which sits on 10 acres of beachfront lands.

Louis Campbell, managing director of the Royal Decameron resort group in Jamaica, said last year that his company was confident it would eventually end up owning the hotel.

Runaway Bay Development was placed in receivership early in 2011 by first-ranked creditors to recover a debt of US$20 million. Its assets include the hotel and an adjoining 3.176-acre property. The company's shareholders are Development Bank of Jamaica with 54.35 per cent interest, and minority partners SuperClubs which holds 15.22 per cent, and Scotia Investments, 30.43 per cent.