NEWS

The Collapse Of Pullman Nadi Bay Resort: 3 Theories

Industry experts are suggesting three main reasons for shock collapse of Pullman Nadi Bay Resort & Spa.
08 Aug 2020 11:25
The Collapse Of Pullman Nadi Bay Resort: 3 Theories
Pullman Nadi Bay Resort & Spa, Wailoaloa.

Industry experts are suggesting three main reasons for shock collapse of Pullman Nadi Bay Resort & Spa.

They say it was a bold venture from developers Travel World Resorts Pte Ltd, a subsidiary of the Gokal Group of Companies, in support of Government’s drive for tourism rooms.

Gokals started it with good intentions. The Pullman brand belongs to Accor Hotels and they managed, the resort for Gokals. But insiders are suggesting three contributing factors to the current situation :

1. Location

Pullman Nadi Bay Resort & Spa, a five star hotel, was built in the budget accommodation hub, Wailoaloa Beach area.

There are a number of well-established such operations as Aquarius, Smuggler’s Cove, Nadi Bay Resort, Blue Water Lodge, Club Fiji, Beachside Resort, Grand West Villas and Wailoaloa Beach Resort.

Pullman Nadi Bay guests were able to stroll there to eat and drink at budget establishment prices.

Good for tourists. Bad for investors in expensive facilities.

2. Cost overruns

They had a lot of complications in the construction which led to cost overruns.

It was a big development with quite a significant budget of an initial $80 million but had cost overruns in construction that caused financial pain.

Downturn of the economy

The economy faced a downturn, soon after Pullman Nadi Bay opened and then the hammer blow of COVID-19.

The primary financers were Fiji Development Bank (FDB) and HFC Bank.

Past Saturday, FDB advertised a mortgagee sale of the property. Apart from that there were winding up applications filed in the Lautoka High Court recently against the resort developers over alleged outstanding payments. Adish Narayan, of AK Lawyers, confirmed they filed the winding up application against Travel World Resorts Pte Ltd, a subsidiary of the Gokal Group of Companies.

The law firm is also acting for some of the companies that are alleging they are owed money by the developers of the five star property.

Mr Narayan had confirmed also that supporting applications received by AK Lawyers from Western Builders Pte Limited, Larsen Holtem Maybin and Company Ltd, Nadi Plumbing Works Pte Limited and Ravindra Civil Works Pte Ltd.

The winding up applications case will be heard at the Lautoka High Court on August 20.

The resort was first put up for sale, by the Gokal Group in June last year and was being sold through Colliers International of New Zealand and local agents My Island Home Fiji of Nadi.

Queries were sent to Gokal Group of Companies, in yesterday and reply came from the company acknowledging the email but saying: “Unfortunately, we are not in a position to make any comments at the moment.”

Feedback: maraia.vula@fijisun.com.fj

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