By 1978, the Government had announced a $141m building programme (five year contract) between the Hotel Corporation of Bahamas and Jack Tar (Nassau Limited).
On 22 June 1978, the Emerald Beach Hotel closed its doors. Under the new management of Dallas-based Jar Tar Hotels, it was renovated and refurbished and part of the hotel was demolished in preparation for the new Cable Beach Hotel (scheduled to open in December 1981).
When the hotel reopened for business on 1 December, 1979, it became known as Emerald Beach Hotel – A Jack Tar Resort.
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