Grenada Government Ordered to Halt Hotel Acquisition

Grenadian by Rex resorts

by Linda Straker

The Grenada Government has been ordered to wait until the Eastern Caribbean Court of Appeal hears the appeal application filed by the owners of Rex Resorts.

The application is seeking to dismiss a compulsory order granted by a Grenada High Court in December 2016 that gives Government the right to acquire the property through the Land Acquisition legislation.

 “An interim conservatory order is hereby granted directing that the applicant [Rex Resorts] be permitted to continue to remain in possession of and to continue to operate the hotel known as the Grenadian by Rex Resorts, which the applicant built and owns, until the hearing and determination of the applicant’s appeal against the decision of Adrien-Roberts J delivered on 20th December 2016,” said the Eastern Caribbean Court of Appeal 21st February 2017 judgement.

The judgment means that Rex Resorts will “be permitted to continue to remain in possession of and to continue to operate the hotel known as the Grenadian by Rex Resorts.”

The saga between Government and management of the 212 room hotel came about as a result of Government’s decision to acquire the land and the property using the Land Acquisition legislation.

The law provides for Government to acquire any land for public purpose. In the acquisition order Government said it is to increase the room stock of the island’s hotel sector.

The matter began in early 2016 and went through a series of court hearings, which in December saw a judgement ordering Government to go ahead to acquire the land and property. However, the management of Rex appealed that judgment.

Government was in the process of complying with the Land Acquisition law and the judgment, when the management of Rex Resorts appealed the compulsory order on a number of grounds, including that of violating its constitutional rights in accordance with section 16 of the Grenada Constitution.

As a result of the conservatory order, Government will have no choice but to wait until the appeal is heard to proceed with the acquisition.

“We will simply wait until the Court of Appeal hears their appeal,” said Attorney-General Cajeton Hood. That Court is expected to be meeting in Grenada in about 2 months.

A news release from the communication firm for Rex Resorts said that in responding to this order, Rex Resorts CEO Richard Bryson issued the following statement:

 “Rex Resorts is happy that the Court of Appeal issued this conservatory order. This judgment states very clearly that Government acted with extraordinary haste and that Rex Resorts’ rights under the Constitution of Grenada must not be ignored. We are eager to resolve this matter and to move forward with executing the property enhancement plans we’ve outlined to Government.”

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