Financing Closes For Fairmont Renovations
[Updated] Westend Properties announced that the “financing for the renovation of Bermuda’s iconic Fairmont Southampton has closed today” and “capitalisation for the entire Southampton project is estimated at more than $550 million.”
“While we have had the financing commitments to fully fund this redevelopment in place for some time, it has been a complex process to finalise all the necessary documentation with the various parties to the transaction,” said Alessandro Colantonio, Chief Investment Officer at Gencom, the managing partner of Westend.
“Late last year we stated that the project was fully funded and that we were progressing to closing. We are so pleased to share that the closing date is today. We have completed the required documentation to close the financing and the balance of funds have been remitted for this redevelopment.”
A video overview of the planned hotel renovations
A spokesperson added, “Our confidence in the funding commitments allowed us to move forward with the pre-development steps earlier this year, including the demolition and mobilisation work at the site. Construction at the hotel and Beach Club will now enter its next phase.
“To that end, we are very pleased to report that approximately 75 shipping containers carrying building materials, scaffolding and additional construction equipment will be arriving in the first half of October and will make their way to the site. We apologise in advance for any traffic disruptions this may cause. By November, the entire hotel will be covered in scaffolding in preparation for the next steps in the renovation.
“We expect that at least 200 construction-related positions will be available for local talent and are planning to publish employment ads by late September. As mentioned in past releases, BCM Construction, Performance Construction Ltd. and Frazee Construction Co. are the contractors taking the lead on the various aspects of the renovation of the hotel and Beach Club.
As Chris Furbert, President of the Bermuda Industrial Union [BIU], explains, “This next chapter in the renovation of the Fairmont Southampton is so important – not just for BIU members, but also for Bermuda’s position as a premier tourist destination. We are all looking forward to working together to bring this project to fruition.”
A spokesperson added, “All of the committed parties involved in the fully funded renovation – including key lenders Starwood Property Trust and Clarien Bank – are excited to see the progress being made. Lotus Capital Partners, led by Faisal Ashraf, acted as capital markets advisor to Gencom on this transaction.
“We are thrilled to be working with high calibre, blue chip partners on this venture,” said Colantonio. “As we continue to forge ahead, the public will see very real evidence of this progress in the coming weeks.”
Simon Van de Weg, Chief Banking Officer at Clarien Bank, said, “Clarien is proud to play a pivotal role in the financing of this transformative project, which will revitalise one of Bermuda’s most iconic resorts and strengthen the island’s position as a premier destination. This underscores our commitment to supporting the growth of Bermuda’s economy through innovative financial solutions that meet the evolving needs of the Bermuda market.”
A spokesperson added, “The planned overhaul to the Fairmont Southampton features a number of significant updates to nearly every aspect of the historic resort, including a stunning makeover of all guestrooms, bathrooms and corridors, with high-end furnishings and fixtures; the transformation of the lobby, including a new reception area; restoration of the hotel’s ballrooms and meeting rooms to attract and welcome Bermuda’s most important events and celebrations; a fresh new ambiance for the restaurants, with sophisticated menus to suit every need; and the complete renovation of the Beach Club which has been designed as the resort’s signature amenity and will include a new oceanside beach grill as well as a spectacular resort-style pool complex.
“According to current timelines, construction on the Beach Club will be completed by the Fall of 2025, while the hotel is expected to fully reopen by Spring 2026.
A Government spokesperson stated, “This is exciting news and represents a resounding vote of confidence in Bermuda and the potential of our tourism industry. The Government of Bermuda has maintained that the redevelopment of this site is critical for the continued growth of this economy. Bermudian employment opportunities at every stage are key to our determination to play our part in delivering this project. We look forward to work starting in earnest and for this redeveloped hotel becoming the demonstration of a tourism renaissance in Bermuda.”
“We are so thrilled to have reached this critical milestone,” said Karim Alibhai, Founder and Principal of Gencom. “This has been an incredibly complex transaction, with the involvement of the Government and multiple lenders. But this is where Gencom excels – we are visionaries and dedicated creators of destinations. Our team successfully navigated the challenges we’ve faced and we remain unwavering in our commitment, both to this project and to the people of Bermuda. We are so grateful to everyone who was involved in this achievement and especially want to thank Premier Burt and the Government for their unwavering support and belief in this project. We can’t wait to reopen the Fairmont Southampton and welcome everyone back to this world-class destination resort.”
Update 9.08pm: “A seismic boost for tourism,” said Minister of Tourism, Culture and Sport, Sen. Owen Darrell this evening after news that the financial transaction for the redevelopment of the Fairmont Southampton has closed.
“Today’s news sets the stage for inevitable growth in our tourism industry and will open doors to the increased airlift we need. I look forward to the commencement of the work at the site and the employment opportunities this will provide to Bermudians who can look forward to careers in this critical industry.”
How about a Thank You from Gencom and government to the people of Bermuda for their patience and playing the fool for the past 4 – 5 years?
This was supposed to open in 2023 according to Burt in Feb 2022.
In Oct 2022 Burt told Progressive Labour Party delegates, at a leadership debate as his place at the helm is challenged by Mr Dickinson, that the Fairmont Southampton deal “has been done”. “The deal has been signed. What we are doing is getting to the closing process, which takes 45 to 60 days.”
Now we are being told 2026
I do not doubt that it will eventually open, but can you really say that the CURRENT PLP should be governing this country given the lies, misdirection leading to a concrete megacity that will be the Condos putting greater stress on an infrastructure that has been left to crumble in favor or handing out mere crumbs to Bermudians appease the crowd while enriching self.
Well they certainly have been playing the fool.
Sabali!
And the US Fed just cut the prime interest rate by 0.5. I wonder if that drop was factored into the loan agreements.
So pleased to see this project at this juncture.
Hoping for a successful timely completion!
Well done.
“Hoping for a successful timely completion!”
LOL just a tad bit late for that! Unless of course one has really low standards I suppose.
Will the hotel have any rooms available this coming spring, I’ve been waiting patiently along with my Family to get back there it was always the best by far
Any bets there will be a union dispute on this work site before this project is finished?
This is good news. I only hope there are no hidden pitfalls. For now, I will look forward to returning to Southampton Princess Hotel in the spring of 2026.
So much negativity.