Property developer West Hamilton Holdings is poised to move into the hotel business, The Royal Gazette can reveal.

The latest move from the firm comes after it earlier this week announced half-year profits to the end of March had more than doubled to $777,897.

The company, which owns office buildings, apartments and a parking lot in the business hotspot of Pitts Bay Road, said the secret of its success was an ability to read the market and build to satisfy current demands.

Harrichand Sukdeo, chief operating officer at West Hamilton, said mergers and the recession had led to a downturn in demand for office space, so the company adapted and opened Belvedere Residences last year.

Mr Sukdeo added: “We’re not dedicated to any particular real estate sector — where we believe the market has demand, we will try to meet that demand.

“Currently, we’re focusing on the residential market, but we believe hospitality may have an appeal.

“It’s not necessarily a tourist environment. This is essentially a business district and our hospitality product might be designed to provide a product to fill a niche market and we believe that market exists.”

He was speaking after West Hamilton said that revenue for the half year climbed 40 per cent to $1.49 million — with additional rental income from Belvedere Residences, which is now fully occupied, and the firm’s office space a contributing factor.

The Pitts Bay Road parking garage is also fully occupied, with a waiting list of more than 100 potential customers.

West Hamilton, publicly traded on the BSX, this week approved a special dividend payout of 10 cents per share, payable on June 12, to shareholders of record on May 29.

And operating income for the six month period jumped by 46 per cent to $765,476 compared to $524,390 for the same period the year before.

Earnings were 27 cents per share, more than double the 12 cents per share recorded for the same six months the previous year.

Total shareholders’ equity amounted to $22.5 million, up from $21.5 million at the end of September last year — an increase of 3.3 per cent.

And total assets stood at $39.2 million, compared to $40.1 million.

Book value per share at the end of the six months was $7.65, up 3.2 per cent over the period.

It’s all a far cry from around a decade ago, when West Hamilton was a bakery.

Mr Sukdeo said: “Over the years we’ve seen a noticeable trend in the development of West Hamilton from the date we transitioned the business from baking bread into a real estate investment company — and our results have been phenomenal. The growth has been exceptional.

“Ten years ago we wanted to convert the property into a real estate investment and management company when demand for office space was very high.

“Today this side of the city is the major international centre in Bermuda and we’re in fact still inside that international market.

“But demand for office space has understandably been very low because of the consolidation going on in international business and reinsurance.

“There was tremendous interest in residential living, hence the transition from office space into residential living. Since January, Belvedere Residences has been fully occupied and the Belvedere Building is 80 per cent occupied.”

And Mr Sukdeo predicted the standing of the former bakery would continue to rise in the future.

He said: “We have had about a ten-year track record of continuous growth and over the foreseeable future we have a strategic plan to develop this property and that can only result in more success.

“We’re very flexible and we’ll continue to provide the market with what it demands. We’re growing year on year and in the future we expect that to continue.

“If real estate is your interest, West Hamilton is perfect. We’re very optimistic and we remain committed to developing our property.”

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