Harrah's Entertainment has terminated its joint-venture agreement with Baha Mar Development Co. to build a $2.6 billion resort complex in Nassau, Bahamas. Harrah's was a 43% minority partner in the project, with Baha Mar Development owning 57%.
Harrah's stated that Baha Mar had "taken longer than anticipated to organize the project, and circumstances have changed such that it is simply not prudent to move forward."
The joint venture called for a Caesars resort casino with more than 1,000 guest rooms and a 100,000-square-foot gaming area, expected to be the largest casino in the Caribbean when completed. In addition, separate management agreements between Harrah's and Starwood Hotels & Resorts called for four hotels with the W, St. Regis, Westin and Sheraton brands.
The entire Baha Mar project called for a mixed-use resort of 3,550 rooms set on 1,000 acres, with the first phase scheduled to open in 2010.
"We do not have confidence that the proposed joint venture could successfully complete the project as originally contemplated," Harrah's said. "Accordingly, we believe it could prove harmful for all to move forward."
Baha Mar Development said it is committed "to moving forward with the Baha Mar project. If necessary we will explore all options, in partnership with the government of the Bahamas, to complete the project in a responsible fashion to benefit the people and economy of the Bahamas."
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