Bahia Principe’s decision to shutter its flagship Grand resort was already well underway before Hurricane Melissa slammed into Jamaica’s north coast — a point the company is now clarifying as labour disputes flare and recovery costs soar.
Managing Director Jonay Guerra confirmed that internal discussions around a full-scale 12-month renovation of the Bahia Principe Grand began early in 2025, with formal consultations initiated between September and early October. The plan involved temporarily closing the Grand — the brand’s older 2007 hotel — while keeping the newer Luxury wing (built in 2015) partially operational. The overarching goal: overhaul an aging facility that was fast falling behind modern expectations.
“The Grand was always slated for a full renovation. It’s an aging property in need of a serious facelift to stay competitive. Hurricane Melissa didn’t cause the closure — it just complicated everything,” Guerra said.
That complication now carries a new price tag: $815 million in structural damage layered on top of the resort’s already-approved $15 billion renovation budget. Storm-battered ceilings, roofing systems, windows, fencing, and furnishings across both hotels have pushed the resort’s recovery timeline into uncharted territory.
Tensions with Labour
The company’s handling of its staff during the transition has come under scrutiny from the Bustamante Industrial Trade Union (BITU), which requested government intervention as redundancy letters were issued. While negotiations with the Ministry of Labour are ongoing, Guerra insists the decision to pursue redundancy instead of temporary lay-offs was deliberate — to ensure employees receive lawful compensation during the prolonged shutdown.
“With layoffs, people are left waiting. Redundancy gives them what the law provides. We made that call even before the hurricane — not to abandon our people, but to make sure they’re financially supported during this long window of uncertainty,” he explained.
Around 1,700 workers are spread across the Bahia properties, with roughly 1,000 tied to the Grand. In response to the hurricane’s immediate aftermath, the resort sheltered nearly 900 employees and their families and has already provided $80 million in relief assistance. Over 300 employees reported damage to their homes.
Delays Beyond the Gates
While internal damage is being slowly addressed, Guerra emphasized that rebuilding efforts are constrained by the broader infrastructural breakdown in St Ann. Unreliable electricity, disrupted water access, poor road conditions, and weak telecommunications have made it nearly impossible to commence construction at scale.
“You can’t pour concrete without power. You can’t build with no water. And you certainly can’t coordinate teams when communication is fractured,” Guerra stated. “We want to reopen fast, but there’s no definite date until the outside environment catches up.”
Even so, early repair works have begun, and the company is exploring ways to re-engage its workforce. Over 1,000 construction jobs are expected to be created throughout the renovation phase, with many expected to be sourced locally. Existing staff with trade skills may also be reassigned to the rebuild through Bahia’s network of external contractors.
Still Committed to Jamaica
Despite the financial blow and community pressures, Bahia Principe says it remains fully committed to Jamaica. Guerra reaffirmed that plans for a third hotel — a 350-room villa-style resort in Runaway Bay — remain intact.
Valued at approximately $30 billion, that project is expected to kick off once the current reconstruction phase stabilizes, likely around 2027. The company anticipates hiring an additional 1,000 Jamaicans once that property comes online.
“We are here for the long haul. What’s happening now is painful, but it’s part of the transformation. When we return, it’ll be with a newer product, a better experience, and expanded opportunities for Jamaicans,” Guerra concluded.
The message is clear: while the hurricane may have accelerated visibility around the closure, Bahia’s pivot was already underway. The challenge now lies in managing optics, labor fallout, and a recovery timeline that grows more unpredictable by the day.
