News that a once iconic resort that was mothballed more than five years ago is set for redevelopment has been welcomed by the Government and hoteliers.

Owen Darrell, the tourism minister, said the news was a positive development for the island with the potential to enhance Bermuda’s appeal as a premier destination.

“I extend congratulations to the new owners and look forward to seeing their plans come to fruition,” Mr Darrell said.

“This project represents a significant opportunity for job creation and economic stimulation, which are vital for the community.

“The grant of relief in support of hotel development is an established practice under the law. The ministry has worked with the developers throughout the transaction to provide guidance and support and will continue to assist them as their plans evolve.”

Stephen Todd, the chief executive of the Bermuda Hotel Association, said that the purchase of the Elbow Beach Hotel in Paget by the Loren Group would boost room inventory on the island once the resort reopened.

He added that the association’s board of directors and members were “extremely excited and very pleased” with the announcement on Wednesday.

“This marks an important development in terms of our overall hotel property offerings, as the future redevelopment of this iconic property will add much needed additional hotel room inventory to our overall destination offerings, as well as significant employment opportunities for Bermudians seeking to embark on careers in our key industry sector, all of which will further stimulate our overall economy,” said Mr Todd.

“As the Loren Hotel at Pink Beach is considered to be one of our highly valued association members, we are confident that the redevelopment of the Elbow Beach Hotel will further underscore the importance that is being placed in Bermuda by Stephen King, the chief executive and founder of the Loren Group.

“The future growth and sustainability of our key tourism industry will further position Bermuda to compete with other destinations on a global scale, as we collectively seek to attract and retain repeat leisure and business guests to our destination.

“The BHA wishes much continued success to the Loren Group, as we look forward to the future reopening of the hotel property.”

The hotel closed in early 2020 because of the Covid-19 pandemic but was expected to reopen in 2021.

However, it remained shuttered and in 2022 it was confirmed that owner Saudi Prince Khaled bin Sultan bin Abdullaziz Al Saud was in negotiations with a potential buyer.

The resort went into liquidation in October 2023 amid claims that it was massively in debt.

By that time, the main hotel building was understood to be in a state of disrepair after sitting empty.

In May last year, the property was put on the market again, with Rego Sotheby’s hopeful that the 44-acre site would be sold by the end of 2024 after a bidding process.