The Bermudiana Beach Resort returned to the headlines after the Government announced that it had backed out of a deal to turn the property into a boutique hotel.

Lieutenant-Colonel David Burch, the Minister of Public Works, announced that the Government had decided to jettison the long-running project after a feasibility study concluded that a hotel model was no longer financially viable.

Instead, he announced that the 94 units — originally developed as part of a failed affordable housing project — will be put on the rental market once construction is complete at the end of this year.

Confirming that Cabinet had decided on the fourth option, Colonel Burch said: “This was a difficult decision, as much effort was placed into converting the property into a hotel.

“But when presented with the data, and the expert advice, the Government chose to change course yet again — but one that we believe is in the best interest of the country and one that will prove beneficial to the economy in the long term.”

Colonel Burch accepted that the new model failed to address the Government’s two priorities of increasing hotel beds and affordable housing units, as units have been given a provisional monthly rental value of between $3,000 and $7,000.

However, the minister maintained that “a rising tide lifts all boats”, and that increasing the number of rental properties on the market will help to bring down overall prices.

He also announced that, despite the change in direction for the property, the Government would consider moving forward with controversial plans to convert a portion of the neighbouring Southlands National Park into an events lawn.

The development was the latest in a series of twists for the property, which was originally developed as part of the Grand Atlantic housing development, a hybrid hotel and affordable housing project.

Only two out of the 78 condo homes built in 2011 were sold and the hotel was never built.

The former One Bermuda Alliance administration confirmed in April 2014 that it had signed a contract to “upgrade and reposition” the site for tourism use, but the project was stalled so the site could be used to house sailors and support staff from the 2017 America’s Cup.

The Bermudiana Beach Resort was later unveiled as a condo hotel — a condominium complex operated as a hotel — but that work would not start until after the America’s Cup.

In March 2018, after the Progressive Labour Party returned to power, Colonel Burch said there had been “extensive negotiations” to modify the business plan with the Bermuda Housing Corporation, which owned the property.

The minister said the new arrangement included “more cost-efficient project financing”, which would help the BHC to “clear the debt on the site” and focus on housing.

Earlier in 2024, David Burt, the Premier and Minister of Finance, told the House of Assembly that the Government had guaranteed a $25 million loan on behalf of Bermudiana Development Company Ltd, a subsidiary of the BHC, for the completion of the resort. This brought the total cost to more than $100 million.

In the wake of the latest pivot, Colonel Burch denied that the Bermudiana Beach Resort was a “failed project” and said more revenue would be generated by rental accommodation than a hotel, with less risk.

He added: “We have indicated that those on the Bermuda Housing Corporation list will be reviewed so that some of them may take advantage of this opportunity as well as some guest workers to ensure sufficient revenue is raised to service the outstanding debt.”

MPs were later told that the Government had to pay the Hilton Group $399,600 after dropping the resort plans.

Meanwhile, ground was formally broken at the Fairmont Southampton for a major renovations project for the hotel, which closed its doors in 2020.

Karim Alibhai, founder and principal of Gencom, 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.”

In the courts, Clinton Smith pleaded guilty to causing the 2022 death of 70-year-old Keith Gordon, the son of late labour and civil rights leader E.F. Gordon, a National Hero, and brother of former premier Dame Pamela Gordon and former Opposition leader Patricia Gordon-Pamplin.

The Supreme Court heard that Smith had “pummelled” Mr Gordon with blows to his head and body. While CCTV footage showed Mr Gordon getting up and walking away, he was found dead the next day.

A pathologist later found that Mr Gordon had died of a heart attack associated with multiple blunt-force injuries, along with underlying heart disease and cocaine toxicity.

Smith, who was previously jailed for causing death by careless driving, was sentenced to serve six years behind bars.