Withdrawing from the Hilton brand deal at the Bermudiana Beach Resort came with a $400,000 price tag
The Government’s decision to withdraw from its deal with Hilton Hotels was disclosed on Friday in the House of Assembly. Minister of Public Works, Lt. Col. David Burch, confirmed that ending the agreement, which aimed to transform the Bermudiana Beach Resort into a boutique condo hotel, came at a cost of just under $400,000.
Previously, Minister Burch had indicated the cost would be less than half a million dollars but had withheld the exact figure until after consulting with Hilton. On Friday, he updated the House, stating, “This decision results in a separation from the Hilton agreement at a cost of $399,600.”
Over the past 12 years, more than $100 million had been invested in the property, which struggled to attract buyers as part of the Grand Atlantic Residences project.
Minister Burch defended the decision to convert the site into rental units, emphasizing the need to secure the best return on investment. “We were faced with a very difficult decision and chose the option that will secure some return on our investment and meet the payback of outstanding loans while also relieving some of the pressure on the rental market,” he explained.
He also confirmed that some individuals on the Bermuda Housing Corporation waiting list could qualify for housing at the site. An analysis is now underway to determine the next steps.
