A $20 million renovation of one of Bermuda’s most iconic hotels is planned for later this year and next year.

Details of the project were disclosed in the Senate last week as the Tourism Investment Hamilton Princess & Beach Club Order 2024 was tabled, presented and approved on Thursday evening by Owen Darrell, the Senate Leader.

The order involves phase four of the hotel’s redevelopment by Hamilton Properties, whose beneficial owner is the Green family.

Hamilton Princess & Beach Club has been awarded: full relief from customs duty for ten years from the operative date of the order; full relief from hotel occupancy tax for 12 years from the hotel’s opening date; full relief from the employer’s share of payroll tax for 15 years from the hotel’s opening date; and full exemption from land tax for five years starting from the sixth anniversary from the hotel’s opening date.

The exemption from land tax is subject to the hotel confirming in years six through 11 that 70 per cent of the hotel’s staff is Bermudian.

The exemption from the employer’s share of payroll tax is subject to a management training programme for Bermudians, verified by the Department of Workforce Development.

Mr Darrell said: “In the current economic climate, investment in the redevelopment of the Hamilton Princess & Beach Club, a Bermuda landmark, will provide much needed invigoration of the tourism industry and the economy in general in Bermuda.

“The Green family has been based in Bermuda for over 70 years and has developed a long-term investment plan for the hotel based on the extensive knowledge of the island.

“Phase four of the redevelopment of the Hamilton Princess & Beach Club includes the recently completed renovation to the Harbour View Hall Room, the Princess Rooms and the Regency Terrace to bring the space in line with other renovations undertaken at the hotel.

“In November, 2024, the redevelopment of the Bermudiana Wing will commence renovating the bedrooms that better suit the renovated and upgraded hotel. The completion date for the Bermudiana Wing is scheduled for the second quarter of 2025.”

Mr Darrell added that the total investment for the fourth phase of the redevelopment project was $21.2 million.

“The Hamilton Princess & Beach Club is committed to the growth and development of its workforce and will continue to provide financial and on-the-job training support, thereby ensuring there is an opportunity for all colleagues, specifically Bermudians, who demonstrate a strong desire to make hospitality their career focus,” he said.

Dwayne Robinson, Opposition senator, highlighted that the order was tabled and presented in the same day.

He added: “Though we appreciate that the minister spoke to us in advance, once again the Opposition has made itself available when it comes to the best interests of Bermudians, its people, economy and jobs.”

Mr Robinson questioned the different relief package given to a previous hotel and asked how the relief was determined.

He also asked if the minister had “bothered” to reach out to vacation rentals about offering relief to that sector.

Mr Darrell responded: “The total periods of relief are 15 years and they cannot exceed 15 years. Due to past periods of relief already awarded to respective hotel developments, these already-awarded periods are then subtracted from the awards given in the Tourism Investment Order.

“When we talk about vacation rentals, they are very much an important piece of the tourism ecosystem and a very important piece of the resurgence in tourism in Bermuda.

“They are definitely a key part of this and I have started conversations with them.

“It is important to know that vacation rentals in this instance are outside of the realm of what we are talking about as they are private properties owned by individuals.

“As it stands at this moment, they are not part of this. I will have more comments to say on this a little later.”

The Government has recently passed similar Tourism Investment Orders for Ariel Sands, the Bermudiana Beach Resort and Azura Bermuda.

Other resorts expected to undergo improvements soon include the Fairmont Southampton, which is expected to reopen by the end of next year, and the Grotto Bay Resort, which recently sought planning approval to build more than 50 new guest rooms.