The Jewel branded resort chain expects to earn US$5.1 million in profit by year-end, with projections to grow that amount nearly threefold by 2017, data reveals.
It indicates the growing importance of tourism for insurance giant Sagicor Jamaica which controls three hotels. The projection for 2013 doubles the US$2.2 million earned from the chain in 2012, according to Sagicor in its Real Estate X Fund Prospectus.
Sagicor aims to raise at least $1 billion to a maximum $2.5 billion in its real estate offer in order to fund the future growth of its real estate portfolio. Roughly 80 per cent of the revenues in the portfolio are to come from tourism.
*Jewel Dunns River aims to earn U$3.5 million in 2013 on total revenues of $17.6 million. Profit projections gradually rise to US$6.4 million in 2017 on projected revenues of US$22 million.
*Jewel Runaway Bay aims to earn U$1.5 million in 2013 on total revenues of $16.3 million. Profit projections rise to US$4.8 million in 2017 on projected revenues of US$21.2 million.
*Jewel Paradise Cove expects to record US$25,000 in losses for 2013 on total revenues of US$3.1 million. Profit projections rise to US$3.3 million in 2017 on projected revenues of US$16.1 million.
The three hotels are located in the parish of St Ann with a combined 747 room count and over 80 per cent occupancy, according to Sagicor data. Sagicor appointed international company Aimbridge Hospitality to manage all three properties. In 2017 the three hotels are projected to earn US$14.6 million in net profit from US$59.4 million in revenues. Comparatively, Sagicor Jamaica earned some $5.9 billion (roughly US$59 million) in its 2012 year end on $19.5 billion in revenues.
Paradise Cove, the latest addition to the chain was acquired in May 2013 for some "US$12.45 million," according to page 117 of the fund prospectus. The purchase of the 225 room property formerly known as Royal Decameron Fun Caribbean Resort was funded by Sagicor Jamaica and Sagicor Pooled Investment Funds Limited, but the title was duly registered in the name of the trustees of the Sagicor Sigma.
Jewel Dunn's River operates a 256-room resort, initially developed in the 1950's as 'Arawak Hotel'. The prospectus indicates that after a number of name changes, including Hilton Hotel and Eden 11 it was acquired by Life of Jamaica (now Sagicor Jamaica) in 1989 and leased to Sandals Hotel chain and rebranded as 'Sandals Dunn's River'. In July 2010, the lease to Sandals expired and the hotel was rebranded under its current name, The Jewel Dunn's River.
Jewel Runaway Bay a 266 room hotel was purchased in June 2012 by Sagicor Sigma acting through the Sigma Real Estate Portfolio. The property, a low-rise beachfront resort was first opened in 1962. In 1977 it was purchased by the Government, acting through National Hotel and Properties Ltd.