Work at the Fairmont Southampton is expected to return the resort to “its former glory and more”, the head of the investment firm Gencom said today at a groundbreaking ceremony for the redevelopment project.

Karim Alibhai told an audience that included the Premier, the Opposition leader, other legislators and construction workers that the renovation team was aiming for a complete transformation.

The founder and principal of Gencom, of which the resort’s owner, Westend Properties Ltd, is an affiliate, said: “We are not just going to do a baseline renovation, reopen and just keep going.

“We needed to do something that brought this asset back to its former glory and more.”

Mr Alibhai added: “We’re very much hoping that in the next 18 months we will be standing in front of you for the ribbon-cutting grand reopening of the Southampton Princess.”

The Fairmont Southampton hotel and its beach resort were shuttered in 2020 during the Covid-19 pandemic.

David Burt opened his speech today by outlining the many challenges that the redevelopment faced over the past few years including the pandemic, a war in Europe, global economic uncertainty and a cautious hospitality investment environment.

The Premier and Minister of Finance said there were times he worried about whether the project would come to fruition but added that he never truly lost faith or hope in it.

He said: “It is important to remember that this transaction represents the largest ever hotel project for Bermuda and it ranks as a remarkable achievement when considering the local and international headwinds that we faced.”

Mr Burt added: “This project represented jobs for Bermudians and, through the Ministry of Economy and Labour, the Government has been clear on how we wish to see Bermudians welcomed to return to the industry, to enter for the first time with a clear path for upward mobility and career growth.

“We are on the cusp of a genuine renaissance in tourism.

“The Government’s deliberate leadership and involvement in delivering this redevelopment demonstrates our fundamental belief in achieving the best for Bermuda and the best for Bermudians.

“I am proud and honoured to lead a government that did the work to ensure that we brought this place back to where it belongs.”

Chris Maybury, a representative of the developer, told The Royal Gazette that he looked forward to the employment of 200 Bermudians during the construction phase of the hotel.

A total of 500 jobs are expected to be filled during the peak of construction, he said, and as many Bermudians as possible will be hired.

Mr Maybury added: “We are not limited by jobs, we are limited by qualified Bermudians.”

He said the hotel was already being “ripped out internally” but admitted that there had been some delays in the arrival of building materials.

Westend Properties announced in September that financing for renovations at the resort had closed.

It was said then that about 75 shipping containers with building materials and construction equipment would reach Bermuda by mid-October.

The hotel was expected to be completely covered in scaffolding and prepared for further renovation by this month.

Mr Maybury said today: “Every day the hotel is not open, it is costing us an absolute fortune so we are the most motivated people in the world to get this hotel open.

“Everything is moving for us to be open in early 2026.”

He added that robust training programmes would be in place to ensure that a “significant” number of Bermudians will be in management and supervisory positions.

Mr Maybury noted that the hotel was fielding 10,000 room inquiries a month and said there had been "a great reaction“.

Owen Darrell, the Minister of Tourism, Culture and Sport, said that the hotel “will soon stand as a beacon of world-class service and elegance” where Bermudians “can build their futures within this critical industry”.

He said: “This remarkable $560 million investment reflects immense confidence in our island’s potential.

“Through the shared vision of the private sector and our government’s commitment, including a $75 million sovereign guarantee, we are ready to welcome this transformation that will make Bermuda an even stronger global destination.“

Chris Furbert, the president of the Bermuda Industrial Union, emphasised the union’s support of the project from the beginning and said: “ … we supported it because we knew it was the right thing for the country.”

He added: “This is not about the PLP [Progressive Labour Party], this is not about the OBA [One Bermuda Alliance], this is about Bermuda.

“The property, with its 593 rooms, represents about 25 per cent of Bermuda’s total hotel accommodations.

“The BIU has often highlighted that any economic recovery plan for Bermuda must include the reopening of Fairmont Southampton.

“Before its closure, this hotel contributed over $100 million annually to our economy.

“We look forward to the completion of this project with an expected reopening in spring 2026.”

Mr Maybury reminded the public about the planned facilities at the hotel including nine restaurants, a golf course, a world-class beach club and tennis courts.

He concluded: “This is the next chapter in this national treasure’s history, and don’t worry, it is going to be the pink palace on the hill.

“It is going to be a Bermudian hotel with a Bermudian flavour.

“Our branding and our messaging is going to be living the spirit of Bermuda. It will be reflected in everything we do.”

After speeches in the hotel lobby, a group, including members of the Cabinet and other MPs, donned hard hats and lifted shovels as they broke ground to cheers and applause.

UPDATE: this article has been updated with additional comments from the ceremony