The new owners of Cambridge Beaches said last night they planned to “elevate the experience” at the resort, with upgrades to guest rooms and public areas.

But Dovetail, a New York hotel development company who sealed the deal yesterday, insisted that the character and traditions of the historic Sandys resort will be preserved.

Dovetail bought the 90-year-old hotel from the Frascati Hotel Company.

Phil Hospod, the chief executive officer of Dovetail, said: “Cambridge Beaches is a magical place, steeped in Bermuda’s history.

“We are honoured to be the new stewards of this esteemed resort.

“We want to build on the traditions that guests have come to love, while creating a setting that allows them to indulge in Bermuda’s natural beauty, connect with its history, and leave feeling restored.

“The property has an established reputation as an authentic island retreat offering gracious hospitality. We want to refine it and let the world in on Bermuda’s best kept secret.”

The resort’s board of directors said the new ownership would be a boost for the hotel and the island.

Derek Stapley, the chairman of Cambridge Beaches, said: “We believe that the hospitality expertise which Dovetail bring to the island will be of massive benefit to Cambridge Beaches, while greatly enhancing Bermuda’s tourism offering.

“This acquisition, and their commitment, strongly reflects their confidence in Bermuda.”

Mr Stapley added: “The principals of Dovetail are not strangers to Bermuda. Not only are they frequent visitors, they have taken the time to get to know the island.

“They embrace Bermuda’s unique culture and people. They have experience in similar developments and understand there is a special nuance to Bermuda.

“Their plans for Cambridge Beaches are considerate and conscious of Bermuda’s heritage, with an eye to the future.”

Mr Stapley said: “We have a fantastic team at Cambridge Beaches and we would like to thank each and every one of them for their many years of hard work and loyalty, often through very difficult times.”

He added that negotiations for the purchase had been supported by several people and organisations, including David Burt, the Premier, the Registrar of Companies and the Bermuda Monetary Authority.

Mr Stapley said: “The last few years have been challenging for all of us.

“Bermuda has been impacted, particularly on the tourism front. This acquisition is a solid endorsement of destination Bermuda at such a critical time.

“Cambridge Beaches has been family-owned for decades, so there is an inevitable sadness at this transition of ownership.

“However, this marks the beginning of a new chapter in the long and successful history of Cambridge Beaches.

“We look forward to following the story in the years to come.”