Business History Books » Business Plans » Swept Away update
Swept Away update
Question:
The following appeared in the internet version of the Jamaica Gleaner on Couples group have struck a deal to take over management of the 134-room Swept Away Resort in Negril. The Elias ‘Lee’ Issa owned all-inclusive resort had become unviable to operate over the past several years, in the prevailing business climate. The operation, still owned by Mr. Issa, is a privately-owned venture, separate and apart from the Couples group or SuperClubs. In July, the Resort’s general manager, Duncan McArthur, confirmed that the Board was in talks with interested parties about a possible change of control. The intention, he said was to improve the viability of the tourism product. Plans Swept Away was doing well up to two years ago, prompting plans to start a Swept Away chain with the proposed construction of a 227-room hotel in Duncans Trelawny in 1996, at a cost of $45 million, with financing developed by Citibank Jamaica
Response:
The plans were,however, subsequently shelved. Mr. Pennicook, president and CEO of the very successful Couples Ocho Rios and the newly opened Couples Negril reiterated that it is indeed "difficult to operate an all-inclusive hotel that size as a single entity. Operating costs must be met at all costs and marketing often becomes inhibitive," the hotel executive told Wednesday Business. Coming under the Couples group, expenses can now be shared, therefore per unit costs will go down. "Having two properties in Negril will allow us certain economies of scale and allow us to employ people who will have responsibilities at both properties," he added. But, will the two hotels become competitors? "The addition of Swept Away to our portfolio broadens the marketing scope of the Couples group as we will no longer be selling couples-only vacations. We will offer Swept Away as a special all-inclusive destination with a heavy emphasis on sports and fitness, catering to singles and couples with active lifestyles," Mr. Pennicook said. He added that "Swept Away has easily the best sports and fitness centre in Jamaica." The hotel is now closed for refurbishing and transition to a the management team. Recruitment of staff has already commenced to meet a late-September re-opening date, according to the CEO. Mr. Pennicook confirmed that some of the original Swept Away have been recruited as Couples Ocho Rios’ general manager, Hugh Wint, and Human Resources manager, Rose Wright, lead the recruitment exercise.