The government of the Bahamas has sold the Grand Lucayan to a partnership between Royal Caribbean International and Bahamas Port Investments.
Authorities hope to reinvest $250 million in the hotel and the redevelopment of the cruise port.
A signing ceremony was held on the great lawn of the property earlier, some 11 months following the signing of the letter of intent.
Prime minister of the Bahamas, Hubert Minnis, said the intention of the government had never been to hold on to the property, which was initially purchased to save Grand Bahamians’ jobs.
“As we stated at the time, it was our intention to privatise the property as quickly as possible.
“We wanted to ensure that we found the right buyer who shared our vision for the renewal of Grand Bahama.
“Our vision was the renewal and rebirth of Grand Bahama’s tourism sector and product as an essential element in the restoration of this island’s potential.”
The prime minister also noted that discussions are currently ongoing to determine the best way to redevelop the Grand Bahama International Airport, which will require a major investment.
Bahamas minister of tourism and aviation, Dionisio D’Aguilar, said: “I am extremely excited that the intended purchasers of this hotel are Royal Caribbean and the ITM Group.
“Between them, they are well funded to bring to the table a great deal of experience in the tourism sector, and have a proven track record of successful projects.”
The development projected for the Grand Lucayan will bring about a total transformation of the resort.
Hundreds of millions of dollars will be invested into the property to refurbish/renovate/reconstruct 500 rooms in phase one and another 500 rooms along with 500 villas in phase two.
Additional features will include a new casino, a spectacular water theme park and a new shopping, restaurant and retail centre.
In addition, a new cruise port will be built in the Freeport Harbour to accommodate three ships in phase one and up to seven ships in subsequent phases.
As a result of the purchase, 3,000 direct and indirect jobs will be created in construction as well as in employment at the hotel and cruise port.