The next 5-star beach resort to open in Grenada, Kimpton Kawana Bay, has announced the launch of its final units for sale, in the Kiawah building which is the last phase of the project to be built.
With over 70% of units sold or reserved, the resort is at an advanced stage of construction on a prime site on Grand Anse Beach, voted by CNN and Condé Nast Traveler as one of the best beaches in the world. The developer has broken ground on the final phase of the hotel, and is now launching sales of the remaining 12 suites and studios.
The additional deeded real estate units will be available from US$220,000 through the Grenadian Citizenship by Investment (CBI) programme.
“These 12 additional suites and studios are the last units for sale in the final phase. The Kiawah building will have spectacular panoramic views of the Caribbean sea, as well as the rainforest mountain range from its prime elevated position,” said Warren Newfield, Principal and developer of Kimpton Kawana Bay.
After careful consideration of the likely long term impact on leisure travel, brought about by the COVID-19 pandemic, and in consultation with the leading Caribbean hospitality consultancy firm, MacLellan & Associates, it was decided not to proceed with construction of the Rekawa building but to rather add an additional 12 units to the Kiawah building in order to achieve the appropriate room mix for the optimal functioning of the resort.
Hitting the sweet spot
The decision to re-configure the resort to 163 keys from the 220 planned, provides a number of positive aspects. The new design, with fewer rooms, reduces guest density in public areas and will emphasise the boutique style of the resort, as well as provide for a more personalised service. With fewer hotel keys, the resort is expected to achieve a higher occupancy and room rate, the all-important drivers for operating success.
“The boutique hotel market segment has consistently represented the ‘sweet spot’ in the Caribbean’s hospitality industry for the last two decades,” said Robert MacLellan, Principal at MacLellan & Associates.
“Boutique hotels have traded steadily, even during economic downturns, and they have recovered faster than larger resorts, as market conditions improved. Their higher room rates and steady occupancy levels provide the best ‘cushion’ between revenue and operating costs to produce consistent levels of profitability. A medium sized boutique hotel – supported by powerful international marketing, reservations and guest loyalty systems – is arguably the best concept for investment in Caribbean resorts.”
The resort will be operated by Kimpton Hotels & Restaurants, part of IHG (InterContinental Hotels Group). IHG is one of the world’s leading hotel companies with more than 5,700 hotels globally in almost 100 countries. The reach and scale of IHG will allow Kimpton Kawana Bay to leverage powerful distribution channels through IHG’s world-class platforms and agent networks.
On-site construction has re-commenced
The Grenadian Government was able to contain the spread of COVID-19 by implementing effective lockdown protocols early on. This swift action meant the rate of infection remained low, with no deaths, and the country has started to ease back to normality with a view to minimise economic loss. This fortunately enabled construction at Kimpton Kawana Bay to re-commence on 25 May, albeit on a limited basis and under strict health and safety measures. Currently, Kimpton Kawana Bay is the only CBI project in Grenada that has resumed construction activity.
Kimpton Kawana Bay is the leading government-approved CBI project in Grenada, accounting for 54% of all section 11 real estate CBI applications in 2019. Interest and sales of units at Kimpton Kawana Bay during COVID-19 have continued at record high levels. In fact, the improved efficiency of the Grenadian CBI Unit has meant that application processing capacity has increased and approval times have reduced in recent months.
Should the high level of interest for CBI investment continue, the intention of the developer is to proceed with a second Grenadian CBI project, currently in planning, and which will be announced closer to the completion of the Kimpton Kawana Bay project.