Good Morning, Mr. Speaker.

I rise this morning to report on the launch of Bermuda’s newest hotel development.  You may recall that my colleague, the Minister of Public Works announced in March 2018 the conversion of the Grand Atlantic site into a new mid-market boutique hotel to be renamed The Bermudiana Beach Resort – Tapestry Collection by Hilton. 

Mr. Speaker, the condominium hotel development will provide the best value for money and is most closely aligned with this Government’s goals of increasing tourist accommodations.  The partnership between the Bermuda Housing Corporation, resort specialist Robert MacLellan of MacLellan & Associates, architectural and interior design firm OBMI Bermuda and Bermuda Realty Company Limited involves the conversion of the existing 78 - two and three bedroom condominiums into a full-service condo hotel with resort leisure amenities.

The property is being redeveloped by a wholly owned subsidiary of the Bermuda Housing Corporation with expert input from the specialist resort co-developer team, who are providing the design, project management, operations, marketing experience and resources.

Mr. Speaker, 71 of the condominiums are being refurbished with new kitchens and bathrooms, additional windows and new floor coverings. The remaining 7 condominiums are being converted into a reception area, bar, restaurant, meeting room, commercial kitchen, spa and operations support areas.  Elevators are to be installed in 8 of the 9 condominium blocks, with the construction of two swimming pools and the installation of two trams to provide access to the beach below and add stability to the cliff face.

The condominiums, available to both local and international purchasers, Mr. Speaker, will be marketed as deeded vacation homes on an outright sale basis.  They will, however, be restricted to a maximum 90 nights per year occupancy, with the balance of nights available for use as hotel inventory under a mandatory rental programme contract, which shares income between individual owners and the resort operating company.  Almost 50% of the condominiums will be modified to include “lock-off” en-suite bedrooms and thus increase the number of suites and rooms available for hotel accommodations to 111.

Mr. Speaker, Phase 1 – comprising 70 of the 111 keys will come online in July next year with the remaining 41 units in 2021.  The agreement with the Hilton franchise will provide access to their world-wide marketing and reservations systems.

Mr. Speaker, we are confident that the development of this exciting new tourism property in partnership with Hilton Hotels International will greatly enhance our tourism offerings.

Thank you.