Legislation giving a tax break to the Hamilton Princess Hotel to convert a Hamilton commercial space into staff housing has been approved by the Senate.

The concessions cover turning the old Bank of Bermuda building into 55 rooms, with the ground floor going for office space.

There would be land tax relied of up to $200,000 a year up to $1 million over the five years of the order.

Goods to an estimated $8 million would be brought in, getting a duty relief of $1.78 million.

There would be $5 million invested in the building and $15 million for redevelopment.

Responding to tourism minister Michael Fahy, Opposition senator Marc Daniels pointed out that the Green family had bought the Hamilton Princess site before the One Bermuda Alliance won the 2012 election — questioning the kind of business the island was really engaged in with continued concessions.

“We are trying to juxtapose those with the national interest,” Mr Daniels said.

Independent senator James Jardine questioned whether rooms freed up at the Southampton Princess Hotel would go towards much needed hotel rooms for next year’s America’s Cup.

“Can Bermudians live in this accommodation if they work for the hotel?” he asked.

Progressive Labour Party senator Kim Wilkerson queried whether high-end staff accommodation would be included.

“I would venture that the ability to have offices on Bermudiana Road competes with local landlords.”

Government senator Vic Ball questioned who the PLP sought to defend by opposing the Order, while OBA senator Georgia Marshall gave her support?, saying the bank premises had stood empty for at least five years.

?In response, senator Fahy said the long vacancy of the building had been “disastrous” in and of itself.