Bermuda Government Green Lights St. George’s Hotel Lease

by Brian Major
Last updated: 7:00 PM ET, Fri March 11, 2016

PHOTO: St. George's, Bermuda. (Photo courtesy of Thinkstock)

Bermuda's historic St. George's district is one step closer to gaining its first new hotel in decades. The country's government recently finalized a 262-year lease with developer Desarrollos Hotelco Group for a 120-room luxury hotel to operate under the St. Regis brand.

In addition to the hotel, plans for this site include a spa, a renovated golf course, residential condominiums and a casino, said Michael Dunkley, Bermuda's premier, at a signing ceremony reported in the Bermuda Royal Gazette. The agreement represents "[the Desarrollos Hotelco Group's] belief in a strong future for Bermuda in both hotel operations and the island's residential real estate," said Dunkley.

The hotel site, which overlooks Fort St. Catherine's Beach, has been vacant since a Club Med resort based there closed in 1988. Luxury hotel operator Carl Bazarian inked an agreement to build a Park Hyatt resort on the site in 2008, but following repeated delays Bermuda's government terminated his lease for the property in 2012. The government approved legislation last year permitting the area's development as a resort.

Bermuda's agreement with Desarrollos calls for a five-star hotel property; groundbreaking on the project is expected this year. The firm was identified through a request for proposal process launched in 2014 by the country's government. The plan called for "a high quality tourism development that will complement the St. George's UNESCO World Heritage Site designation and accentuate the historical significance of the area."

The resort "has the potential to spur other developments and provide exponential employment opportunities," said Shawn Crockwell, Bermuda's tourism minister. "It is crucial to Bermuda and it will have a positive impact on our island," he added. Desarrollos' projects include the Ritz-Carlton Aruba, and Marriott and Renaissance Hotels in Caracas, Venezuela.

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