Audio: Q&A On Bermudiana Beach Resort Costs

June 3, 2023 | 14 Comments

The costs from inception of the initial development of Grand Atlantic to the conversion to the Bermudiana Beach Resort combined was just over $64 million, Minister of Public Works Lt/Col David Burch said, with the Minister explaining that it would cost approximately $28 million more to “bring this new hotel development project to a completion, including all of its amenity cost.”

The Minister said that “this partnership with Hilton Hotels will not only be a welcome addition to the tourism inventory, but also a profitable investment for those purchasing the condos and the Bermudian taxpayer, who will eventually see every dollar spent on this project repaid.”

When asked has there been an infusion of capital by Hilton Group, the Minister confirmed that there is ‘no financial involvement by Hilton,’ and they are the co-developer in the matter.

The questions, posed by OBA Leader Cole Simons to Minister Burch, were:

  • 1. Will the Honourable Minister please confirm for this Honourable House the total capital development amount paid to date from inception, for the infrastructure currently in place as a result of the initial development of the Grand Atlantic Housing Development Project, and the development of the Bermudiana Beach Resort Project combined, including any project conversion cost?
  • 2. Will the Honourable Minister, please provide for this Honourable House the details of the expected sovereign guarantee increase required to satisfy the $29 Million dollar loan facility currently in place for the benefit of the Bermudiana Beach Resort Project, as the current guarantee stands at $10 million dollars?
  • 3. Will the Honourable Minister, please confirm for this Honourable House the details of the work currently outstanding on the Bermudiana Beach Resort Project, and the estimated remaining cost to bring this new hotel development project to a completion, including all of its amenity cost?

The extract of the Q&A in the House:

The property was originally built over ten years ago and was initially designed to be affordable housing.

Update: Minister Burch later clarified that the Hilton Hotels is not part of the Co-Developer Group for the Bermudiana Beach Resort.

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Comments (14)

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  1. Sandgrownan says:

    What a breathtakingly stupid man.

    “…. and the Bermudian taxpayer, who will eventually see every dollar spent on this project repaid.”

    Based on what exactly? $100m is basically half an airport.

    • WHAT? says:

      You sound like one of the few idiots that remain in the OBAubp. When are you kicking out Cole as the leader of this circus and using Jarrion next?

      • Ringmaster says:

        Burch has no idea about this development except to try and make out it will be a success, and tax payers will benefit.
        Impossible. Even if all 78 units were sold, very unlikely, at an average of say $700,000 each, it will generate around $68 million. That leaves at least $30 million (but more with continuing costs) to be recovered. How? Any income from renting the units is shared in some way with Hilton. Is it before or after expenses, and who is paying the expenses? Anyway you cost this out, is cannot break even, let alone return money to taxpayers. This is what happens when the PLP tries to compete with the private sector.

        • Joe Bloggs says:

          This is a perfect example of why Government does not belong in property development.

      • saud says:

        You just sound like a complete idiot. A racist and a moron.

    • Truth says:

      So stupid that he has more support when compared with the current leader of the Old Bucket Association. The opposition party is weak and the supporters sit home and act like keyboard closet clowns. Yet known of the weak morons will start a protest objecting. The party is 95% white but they continue on playing the race deflection card by placing the weakest black face to persuade others of the same ethnicity. The John Swan days are OVER. Oh and yes I voted UBP and flip over to the OBA like many other blacks. Yet some of you believe that when you call blacks that support the PLP sheep or idiots it will persuade other black voters to rejoin the OBA. When actual fact you’re making the PLP stronger.

  2. Details please? says:

    Didn’t the powers that be think about these things before making this decision? 28 Million, more? We just discovered that we need 28 million more to make the property acceptable to Hilton. I’ve been involved in a lot of projects and normally these costs are determined prior to engaging. Somethings not right here. I agree with that we need more hotel rooms ….. Hilton has standards, but is this value for money? As a taxpayer, I’m not so sure. This is “our money” this government is spending, can I see a breakdown of who exactly is receiving the $28 million?

    • Joe Bloggs says:

      The Government has no experience in developing land. That is why this has been a fiasco from the outset.

      Government should stick to governing and leave private industry to drive the economy. In that way, private industry generates profit which Government can then tax and spend.

  3. Dejavu says:

    Disney world didn’t cost that much to build lol but a small hotel in bermuda costs 100 million. Wake up people the government is robbing you blind

    • iyiyi says:

      Unfortunately PLP has a big percentage of voters that are just crowd followers and cannot think for themselves … bottom line … were screwed !

    • Warrior says:

      Dictatorship….their own and they believe it to their grave. Tell the general population and expect us to believe it. Present Taxes will go up, they are digging in loop holes for ways to implement new taxes. We go down that same Hole and they will come out on top with increase 180% in salary. Bermuda has to gain WISDOM and GUTS to make changes to SOS, homes, schooling, seniors care and lots more before these ignoramus politician’s take this our home down and leave us with the ruins they caused. OBA/UBP/PLP..No…a very concerned citizen who wants this party out as it is operated by opportunists. Put names in a hat.

  4. Question says:

    The first failed version was completed in 2011, at an initial cost of $42m. All of the money associated with this added to debt, so it is all borrowed money. None of the government’s disclosures about costs have taken into account the cost of that debt.

    Government borrows money at a cost of about 5- 6%. That alone would mean we have spent $40m in interest to finance the initial $42m, bringing the total cost of the 2011 project to about $82m. If you add the costs of improvements since 2011, which amount to a further $50m, and the interest on those further costs, we have spent well over $135m on this.

    Burch seems to be deliberately ignoring finance costs to make the project appear to be less of a total disaster.

    • Joe Bloggs says:

      “Burch seems to be deliberately ignoring finance costs to make the project appear to be less of a total disaster.”

      Yes, that is a typical political subterfuge and has been for decades

  5. kevin says:

    plp = ever expanding debt
    Not 1 of 36 is worth the money they are being paid
    They built the hospital which costs us 50+ million a year but bring up the airport which they are responsible for most of the shortfall in airlift
    This bermudiana project is one of their best ..spend 14o million and make 70 thats typical plp mathmatics of breaking even
    vote in another 36 next time surely the plp faithful must be richer than they were 25 years ago
    unlike america we cant print money

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