The Premier has quashed claims that an arrangement between the Government and the owners of the Fairmont Southampton has been signed off.

David Burt added that a public announcement will be made “when all aspects of this deal are closed”.

His comments came after Craig Cannonier, the Shadow Minister of Tourism, said he understood that signatures were in place.

Mr Burt told MPs in March that an agreement was reached with Westend Properties, owners of the iconic hotel and resort, confirming the Government’s support for the “vital“ redevelopment of the site.

He added that the agreement was set out in a heads of terms document approved by Cabinet.

Legislators passed tax concessions in May that are expected to offer the hotel’s owners at least $121 million of relief over 15 years.

Mr Burt, who is also the Minister of Finance, confirmed then that the redevelopment project was to be backed by a government guarantee of up to $75 million, which represented 21 per cent of the revised costs of the project – an estimated $376 million.

The Legislature must be informed “as soon as practicable” after a guarantee is executed, in line with the Government Loans Act.

Mr Cannonier, a One Bermuda Alliance MP, said last week: “It is my understanding that the Fairmont Southampton Princess deal has been signed off and that the Premier now is using this for his final lay-out for his leadership.”

He added: “Why the delay, why postpone it? I would venture to say the Premier needs to let us know whether or not the deal is signed.”

Mr Burt told The Royal Gazette: “Unsurprisingly, Craig Cannonier is wrong.

“In keeping with repeated public commitments and the requirements of the Government Loans Act, when all aspects of this deal are closed the announcement of that final deal, including the proposed government guarantee, will be publicly announced.”

Mr Cannonier said later: “We pushed legislation through to give Premier Burt the opportunity to advance with things and get it done, since which we have received nothing but silence.

“What's going on? What's the hold-up on this? We are now behind schedule and he needs to answer for this.

“The rumour is he will announce an update or completion this October to strengthen his bid for leadership. Let's see what happens.”

He told the Gazette: “The public know nothing and he needs to give us information on where he is with this particular project.

“Take note of what the answer is, he says ‘on all aspects’, that could mean anything.

“Contracts are signed and then you continue to work on other matters.”

Mr Burt said in March that the agreement outlined then provided for profit-sharing from the Fairmont Southampton hotel’s operations.

He added: “The Government will pledge the proceeds of this profit sharing to the Bermuda Trust Fund on behalf of the people of Bermuda.”

On March 25, Mr Burt described the terms agreed as the “end of the beginning”.

He added: “This agreement is, however, significant progress, and I am confident that this transaction will close next month as intended and construction will commence shortly thereafter.

“The project will create in excess of 600 direct jobs during the redevelopment phase of this iconic property, which will be welcome news to Bermudians who are seeking employment.

“Following the reopening of the hotel for guests, which is planned for the late summer of 2023, over 800 permanent jobs are to be created in what will be Bermuda’s largest hotel.”

Miami-based investment firm Gencom announced plans for widespread upgrades to the site in December 2019 after it bought Westend Properties.

But the Covid-19 pandemic was said to have forced the closure of the hotel earlier than originally planned, in October 2020.

Simon Boden, area director of sales and marketing for Fairmont, said last month that significant progress had been made on pre-construction work and it was hoped that construction itself would begin before the end of this year.

He was reluctant to estimate when the hotel will reopen but said the public would be kept informed about the project’s progress.

The Gazette sent several questions to Gencom last week, including what – aside from the tax concessions – was so far agreed and at what stage were discussions with the Government.

An independent consultant to Westend Properties and Gencom said there was no comment at this time.