Brookfield Mulls $2.5 Billion Sale of Atlantis in Bahamas
Occupancy has been compressed in part by renovations and room upgrades, according to the ratings firm.
(Bloomberg) -- Brookfield Asset Management Ltd. is exploring the sale of Atlantis Paradise Island Bahamas, and could fetch roughly $2.5 billion for the luxury resort, according to people with knowledge of the matter.
The firm is working with an adviser to solicit potential interest in the sprawling property, which includes multiple hotels, a casino, meeting space and a water park, said the people, who asked not to be identified discussing confidential talks.
A Brookfield spokeswoman declined to comment.
Brookfield has owned Atlantis since a 2012 debt restructuring. The resort, developed by the late South African hotelier Sol Kerzner, has hosted New Year’s Eve events headlined by performers including Fergie and Sting. Brookfield has spent $100 million on renovations on Atlantis, and explored selling it in 2019, Bloomberg News reported at the time, before the effort was halted by the pandemic.
The property’s net cash flow has stabilized, DBRS Morningstar said last week in a note to clients about a loan secured by the 2,917-key resort. Combined occupancy for the 12 months through March hit 56.2%, a marked increase from 35.5% in the year-earlier period. Occupancy has been compressed in part by renovations and room upgrades, according to the ratings firm.
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