The Government’s $75 million sovereign guarantee backing the remaking of the Fairmont Southampton hotel was “executed earlier this week” with Clarien Bank, legislators were told yesterday.

In keeping with a statement by Westend Properties, the resort’s owners, David Burt told the House of Assembly that full financing for the development had come through, enabling the project to proceed.

He said it signalled “the most resounding endorsement of Bermuda as a tourist destination, of the jurisdiction as a place for sound investment, and in the Government of Bermuda as a valued partner to the private sector in support of economic growth and tourism recovery”.

The Premier said the $560 million investment in the project would proceed with the Fairmont Southampton Hotel Act 2023 coming into force “effective today”.

“Reopening the 600-plus room hotel will not only restore but significantly reshape our hospitality landscape,” Mr Burt told MPs.

He added: “Though this is not a new hotel, it’s important to note that this is the single largest tourism investment in Bermuda’s history.”

Mr Burt said the restored hotel would be “akin to a brand new, first class resort”, with 15 months of construction creating about 700 jobs and injecting $500 million in foreign capital into the economy.

He said that “despite those who have campaigned against this redevelopment” and “continue to spend their days lamenting that the sky is falling”, critics of the project “inhabit their own echo chamber”.

The hotel, which is the island’s largest resort, shuttered in 2020 as the impact of the Covid-19 pandemic was felt all over the world.

Its closure has been “felt throughout the economy” ever since, Mr Burt said.

Tracy Berkeley, the chief executive of the Bermuda Tourism Authority, said this morning: “We are thrilled to hear that the financing for the redevelopment of the Fairmont Southampton has been finalised.

“This is a significant milestone for Bermuda’s tourism industry, and we commend both the Bermuda Government and the developers for their dedication in bringing this project to fruition.”

She added: “The revival of this iconic property not only enhances Bermuda’s appeal as a premier travel destination but also provides a tremendous opportunity for our sales team to drive group and team business ― key pillars of the National Tourism Plan.

“We look forward to capitalising on this momentum to increase visitation, boost hotel inventory and further strengthen Bermuda’s tourism sector.”

The president of the Bermuda Hotel Association said that the latest milestone in the resort renovation project was “exciting news”.

Clarence Hofheins added: “We are delighted to hear that our largest member property, the Fairmont Southampton, will begin its planned redevelopment this October.

“The hotel has long been a cornerstone of our destination's offerings, particularly in providing essential convention and meeting spaces.

“Its redevelopment will once again enable Bermuda to attract large international group business to our shores.

“All BHA members recognise the challenges the Fairmont Southampton partners have faced, and we commend their persistence in bringing this project to fruition.”

He said: “As Bermuda continues to grow this vital segment of our tourism economy, the reopening of the Fairmont Southampton, scheduled for spring 2026, will play a key role in ensuring our economy expands to meet and exceed the expectations of our future business and leisure guests.”

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Premier's Fairmont Statement

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