Sandals Whitehouse, which was temporarily closed for upgrades in August, will miss its December 18 reopening date, as projected by operators, Sandals Resorts International (SRI).

The hotel company said the repairs to the 360-room Westmoreland property were proving to be more complicated than estimated.

"The situation worsened after commencement of the major electrical repairs when it was discovered that sub-circuits around the main pool and bar area had to be re-conduited and re-wired; a disruptive process which requires entire tiled areas to be uprooted and the tiles subsequently re-laid," said SRI Group Communications Director Rachel McLarty.

"Given the extent of this and other unforeseen repairs which became necessary, it is now not possible to give an exact date for when the resort will reopen," she said.

The hotel is managed by Sandals Whitehouse Management Limited, under lease from owners Acken-down Newtown Development Company (ANDCO).

J$270-million repair bill

The US$3-million (J$270 million) repair bill is a liability on ANDCO, a hotel company part-owned by Sandals owner, Gordon 'Butch' Stewart, and two government agencies.

Stewart, through his holding company Gorstew Limited, owns 33 per cent of Ackendown and, by extension, has a similar cut of the hotel. The Urban Development Corporation (UDC) owns 37 per cent and Development Bank of Jamaica, 30 per cent.

McLarty said the repair work included a leaking sewage treatment tank, which had to be entirely replaced; furniture; leaking windows throughout the property, and the replacement of decorative concrete moulding.

SRI said it plans to draw business for the property through discounting, but said the strategy was a compromise on the luxury-brand image that Sandals represents.

"The resort will require a prolonged and extensive marketing and promotion lead-time in order to be re-imaged and re-established as a premier location," said McLarty.

"However, given the uncertainty of the timeframe for completion of the work, a short-term marketing thrust is more likely, which will transform into short-term business at severely discounted rates."

The Sandals group is not the only hotel operation to go the route of discounting. Industry reports suggest properties have been discounting up to 60 per cent to gin up volumes and keep hotel rooms full - a strategy that is working to keep stopover arrivals up, but is also pushing yields down.

A hospitality research group, PKF, estimates that Caribbean hotel profit, which fell 16 per cent in 2008, would add to the decline in the current period.

McLarty made no predictions on whether staff would be reduced.

"At this time, a specific staff complement for re-opening cannot be determined," she said. "However, unlike other hotels which have shut down, Sandals Resorts is pleased to advise that, in spite of the general global hardships, 50 per cent of salary has been paid to staff from the time of closure, up to now."

Stewart's company has managed the Whitehouse hotel under contract since its inception in 2005, but even before its commissioning, the hotelier had complained that the workmanship and furnishings were not at the standard usually seen in his hotels.

The management contract runs for five years to 2010.

dionne.rose@gleanerjm.com