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Shirley in talks for US$100-m hotel
Observer Business Reporter
Wednesday, July 26, 2006
A view of the 29 acres of land overlooking the Caribbean - the future home of a 600 room hotel.
Entrepreneur Lyttleton 'Tanny' Shirley has entered into discussions with overseas investors for the development of a 600-room luxury hotel on 29.25 acres of land he owns next door to Sandals Dunns River at Mammee Bay in St Ann.
The investment would be in the order of US$100 million excluding the land, which has an estimated market value ofUS$30 million (J$2 billion).
Shirley, the principal of Mitchell's Auto Supplies and Services group, and Shirlhome Chemical Company, confirmed on Monday that he had signed a memorandum of understanding (MOU) with at least one of the groups of investors who had expressed interest in partnering with him to bring the J$8.5 billion project to fruition.
"We are hoping to put up 600 luxury type rooms on the property," he said. "We want to go for high-end resort to complement Sandals Dunns River next door."
The property has 1,650 feet of beachfront, making it one of the last remaining significant and unobstructed expanse of seafront lands available for development along the resort strip that stretches from Ocho Rios to the east, and St Anns Bay to the west.
The 30-room per acre allowable density in that area means that Shirley and his partners could erect 870 rooms, or a structure that would be similar in size to the 850-room Riu hotel that was recently built next door to Sandals' Dunns River.
But Shirley told the Business Observer that he was opting for fewer rooms to create more green area, and to ensure an environmentally stable development.
"We want lots of green areas," he said. "One hundred per cent of the land is usable. It has a deep front, it is flat, and will be an architect's dream."
This businessman acquired the land in 1996, and about two years later, entered into negotiations with a construction/hotel management group from New York for a joint development. Shirley at the time wanted Sandals to be the operator, but that plan was in conflict with the interest that some of the investors had in managing the hotel. The entire project was shelved.
Among the options that Shirley has explored with the potential investor is an outright sale of the land. However, he told the Business Observer that his choice was to sell the land to the investors and reinvest part of the proceed as his equity in the venture.
As one of Jamaica's most dynamic investors, Shirley is no stranger to the tourism industry. For several years, he has operated a luxury villa at Old Forte Bay, just a few dozen feet from his Mammee Bay property. This villa has been the hideaway for some of Hollywood's biggest stars - including Denzil Washington and Tony Braxton.
To further cement his interest in this niche of the tourism market, Shirley recently acquired property next door to his villa, and will, within the next few weeks, begin a major expansion and upgrading project to create a double-block, nine-room high-end villa stretched across 2.5 acres of beachfront land.
The design work is being undertaken by architect Evon Williams.
"We hope to begin construction anytime now," said Shirley. "When it is completed it will be one of Jamaica's most exclusive villas."
Shirley declined to say how much was being spent on the expansion project.
The renewal of Shirley's active interest in the mainstream tourism business comes at the end of a major expansion of his other enterprise - Mitchell's Auto - first with the addition of a used parts division, followed by the vertical expansion of this company into a major auto supply and service centre.
In fact, only last week, this entrepreneur announced the acquisition of Pinky's Garage in Kingston, which is now being consolidate at the operations at Mitchell's on Hagley Park Road in the city. This latest acquisition marks Mitchell's entry into the area of major auto repairs.
In March, Shirley was nominated as a Jamaica Observer Business Leader for his development of Mitchell's into the region's most comprehensive auto centre, and for the success of his Shirlhome Chemical Company.
Observer Business Reporter
Wednesday, July 26, 2006
A view of the 29 acres of land overlooking the Caribbean - the future home of a 600 room hotel.
Entrepreneur Lyttleton 'Tanny' Shirley has entered into discussions with overseas investors for the development of a 600-room luxury hotel on 29.25 acres of land he owns next door to Sandals Dunns River at Mammee Bay in St Ann.
The investment would be in the order of US$100 million excluding the land, which has an estimated market value ofUS$30 million (J$2 billion).
Shirley, the principal of Mitchell's Auto Supplies and Services group, and Shirlhome Chemical Company, confirmed on Monday that he had signed a memorandum of understanding (MOU) with at least one of the groups of investors who had expressed interest in partnering with him to bring the J$8.5 billion project to fruition.
"We are hoping to put up 600 luxury type rooms on the property," he said. "We want to go for high-end resort to complement Sandals Dunns River next door."
The property has 1,650 feet of beachfront, making it one of the last remaining significant and unobstructed expanse of seafront lands available for development along the resort strip that stretches from Ocho Rios to the east, and St Anns Bay to the west.
The 30-room per acre allowable density in that area means that Shirley and his partners could erect 870 rooms, or a structure that would be similar in size to the 850-room Riu hotel that was recently built next door to Sandals' Dunns River.
But Shirley told the Business Observer that he was opting for fewer rooms to create more green area, and to ensure an environmentally stable development.
"We want lots of green areas," he said. "One hundred per cent of the land is usable. It has a deep front, it is flat, and will be an architect's dream."
This businessman acquired the land in 1996, and about two years later, entered into negotiations with a construction/hotel management group from New York for a joint development. Shirley at the time wanted Sandals to be the operator, but that plan was in conflict with the interest that some of the investors had in managing the hotel. The entire project was shelved.
Among the options that Shirley has explored with the potential investor is an outright sale of the land. However, he told the Business Observer that his choice was to sell the land to the investors and reinvest part of the proceed as his equity in the venture.
As one of Jamaica's most dynamic investors, Shirley is no stranger to the tourism industry. For several years, he has operated a luxury villa at Old Forte Bay, just a few dozen feet from his Mammee Bay property. This villa has been the hideaway for some of Hollywood's biggest stars - including Denzil Washington and Tony Braxton.
To further cement his interest in this niche of the tourism market, Shirley recently acquired property next door to his villa, and will, within the next few weeks, begin a major expansion and upgrading project to create a double-block, nine-room high-end villa stretched across 2.5 acres of beachfront land.
The design work is being undertaken by architect Evon Williams.
"We hope to begin construction anytime now," said Shirley. "When it is completed it will be one of Jamaica's most exclusive villas."
Shirley declined to say how much was being spent on the expansion project.
The renewal of Shirley's active interest in the mainstream tourism business comes at the end of a major expansion of his other enterprise - Mitchell's Auto - first with the addition of a used parts division, followed by the vertical expansion of this company into a major auto supply and service centre.
In fact, only last week, this entrepreneur announced the acquisition of Pinky's Garage in Kingston, which is now being consolidate at the operations at Mitchell's on Hagley Park Road in the city. This latest acquisition marks Mitchell's entry into the area of major auto repairs.
In March, Shirley was nominated as a Jamaica Observer Business Leader for his development of Mitchell's into the region's most comprehensive auto centre, and for the success of his Shirlhome Chemical Company.
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