Bahia Principe’s leadership has confirmed that its year-long closure of the Bahia Principe Grand resort was not a response to Hurricane Melissa, but rather the continuation of a strategic restructuring plan that predated the storm. What was initially framed as a controlled, phased renovation has now evolved into a high-stakes recovery operation as the company wrestles with new layers of damage and uncertainty.
According to Managing Director Jonay Guerra, internal decisions to shut down the Grand — the older of its two Runaway Bay properties — were made early in 2025, with full renovations already budgeted and stakeholder consultations initiated months before the hurricane struck. The intent was to close the Grand entirely for 12 months while keeping the newer Luxury hotel partially active.
“We were already set to pause operations and upgrade the Grand to bring it up to modern standards,” Guerra said. “Melissa didn’t force our hand, but it made the climb steeper.”
The planned $15 billion renovation was designed to overhaul aging infrastructure at the 2007-built Grand. Discussions with the Ministry of Labour and the Bustamante Industrial Trade Union (BITU) were ongoing as of October, including provisions for legally compliant redundancies for impacted staff. However, the hurricane introduced severe additional costs — nearly $815 million in structural damage across both hotels — that now sit on top of the renovation bill.
The union has since requested government intervention in the redundancy process, and both parties are now engaged in formal proceedings with the Ministry of Labour.
Rebuild Delayed Indefinitely Amid Infrastructure Breakdown
Though Bahia Principe initially aimed to kick off renovations in January 2026, Guerra confirmed that the timeline is now highly fluid. The hurricane did more than batter roofs and windows — it knocked out the basic infrastructure needed for any construction to proceed.
“Even if we wanted to move fast, we can’t. We have no consistent electricity, water, road access, or even basic communications in the parish,” he noted. “Until those conditions are stable, it’s impossible to commit to a reopening date.”
Despite the challenges, the resort has moved quickly to provide relief for its own team. Approximately 900 staff and family members were housed on property during the storm, and $80 million has been allocated to assist those whose homes were damaged. Over 300 employees reported personal losses, and around 400 individuals remain sheltered at the resort.
Strategic Redundancy Over Temporary Layoffs
Guerra emphasized that the redundancy process — though difficult — is designed to offer financial support during the prolonged shutdown. Unlike temporary layoffs, redundancy entitles staff to severance pay under Jamaican law.
“This wasn’t about cutting people loose. It was about making sure they could walk away with something in hand during a time when we know they won’t have work for a while,” he said.
The Grand’s workforce of 1,000 is directly affected, but reconstruction is expected to inject new energy into the local economy. Over 1,000 temporary construction jobs will be created, with a portion potentially filled by existing employees who possess relevant skills.
Third Resort Still on the Horizon
Despite the turbulence, Bahia Principe is not scaling back its long-term ambitions. Guerra reaffirmed that the group remains committed to building a third property in Jamaica — a 350-room luxury villa-style resort in Runaway Bay, valued at $30 billion. Construction is expected to commence once stability returns, with a target start around 2027.
“We’re not walking away,” Guerra asserted. “Once we get through this phase, we’ll be back stronger — and we’ll be expanding. That project alone will create another 1,000 jobs.”
In a climate of economic strain and post-disaster disruption, Bahia Principe is positioning itself for a future rooted in resilience, reconstruction, and renewed confidence in Jamaica’s tourism landscape.
