Could there be a new private beach spot for cruisers coming soon?
According to report in local media, Royal Caribbean Group is in the process of buying a defunct hotel in Freeport, Bahamas.
This project appears intended for Celebrity Cruises, instead of Royal Caribbean International.
The news was part of a reveal by The Central Bank of The Bahamas, who said Celebrity Cruises has offered to spend $348 million to acquire Freeport’s long-closed Xanadu Beach Hotel and surrounding land.
The Xanadu Beach Hotel was built in 1968 and then purchased by Howard Hughes in 1972. Mr. Hughes lived at the hotel until just before his death in 1976.
It was an escape for Hollywood stars, and included 215 rooms and an 80 slip marina. Stars such as Frank Sinatra, Dean Martin, and Lucille Ball visited there.
It closed in 2011.
In total, it encompasses a 40-acre site that they intend to transform into "recreational and entertainment facilities", according to the bank.
"Royal Caribbean Cruise Lines - Celebrity Cruises Incorporated obtained approval for the acquisition of 40 acres of privately-owned land for the development of recreational and entertainment facilities. The investment is valued at $348m," the Central Bank confirmed.
The bank did not disclose the specific property, but Tribune Business is reporting it's the Xanadu site.
There has been no announcement by Celebrity Cruises or Royal Caribbean Group yet, nor have they confirmed or denied the report.
According to an anonymous source, the closing on the deal could occur in either late summer or early fall.
Royal Caribbean was first rumored to be in talks to get the Xanadu resort in December 2023
What is Celebrity going to do with the land?
When any cruise line acquires land in the Caribbean it's almost always for a private shore option for its guests.
The local news report says the buying up of the Xanadu property and other adjacent land is for the purposes of combining it all into a shore destination for the cruise passengers.
Royal Caribbean recently acquired the port and surrounding port area in Costa Maya to build Perfect Day Mexico.
They've also acquired land in other ports, such as Vanuatu, Cozumel, and Nassau, Bahamas.
One guess is Celebrity would branch out to have its first private beach property, which would offer its cruise ship passengers a secluded and exclusive day ashore.
It could be similar to either Perfect Day at CocoCay or one of the beach clubs that Royal Caribbean is developing.
Royal Caribbean almost bought another property in Freeport
The reported purchase of the Xanadu resort in Grand Bahama Island is reminiscent of another project that almost happened.
Right before the cruise industry shutdown in 2020, Royal Caribbean was in talks to acquire both Freeport Harbour and the Grand Lucayan hotel and surrounding area.
The idea was to redevelop the port and build a water-based adventure theme park.
The Grand Lucayan resort would have been turned into a world-class beachfront destination with a 526-room hotel, shopping village, spa and wellness center, water-based family entertainment including a massive water and adventure theme park, a 40,000-square-foot convention center, adventure activities such as zip lines and off-roading, restaurants and bars, entertainment and lively nightlife.
The resort would have been a place for both land and cruise guests to visit.
Both deals fell apart due to a combination of the financial troubles associated with the cruise industry shutting down, as well as an inability to finalize a deal with the Freeport Harbour Company.
Building on the private destination trend
If Celebrity is indeed getting in on a beach spot for its passengers, it's one of many such projects around the Caribbean.
Private beaches for cruise ship guests isn't new, but there's been an upward trend in opening new ones.
Royal Caribbean is developing two new beach clubs, with the first one opening in Nassau in December 2025. That's in addition to Perfect Day Mexico coming in 2027.
Carnival is about to open Celebration Key this summer, which is yet another private destination for its line that seems to take many cues from Perfect Day at CocoCay.
MSC Cruises is developing a private island in The Bahamas on a natural sandbank that is aimed at offering a private, luxury beach experience.
Disney Cruise Line recently opened its second private beach spot at Lighthouse Point.
There's a major advantage for cruise lines to invest in private destinations, as it ups the guest experience while partnering with local destinations.
Cruise lines get a "walled garden" experience that give passengers the kind of picturesque, relaxing beach day they imagine.
The ports get guaranteed visitors, and in the case of Royal Caribbean, funding and equity to the local community.
