Premier: Fairmont Financing Has Been Achieved

Premier and Minister of Finance David Burt has confirmed that “full financing of the redevelopment project of the Fairmont Southampton hotel has been achieved” and that “the project can now fully commence.”

Speaking in the House of Assembly today [Sept 20], Premier Burt said, “As of the close of business yesterday, I am pleased to advise this Honourable House and the public that the full financing of the redevelopment project of the Fairmont Southampton hotel has been achieved and all parties have funded their obligations such that the project can now fully commence.

“I can further confirm that the Government of Bermuda, as previously indicated in this Honourable House, is supporting this project with a sovereign guarantee of the sum of seventy-five million dollars, advanced by Clarien Bank to support the redevelopment. In accordance with the Government Loans Act 1978, I hereby inform this Honourable House, that guarantee was executed earlier this week.

“This is a $560m transaction which signals the most resounding endorsement of Bermuda as a tourist destination, of the jurisdiction as a place for sound investment and in the Government of Bermuda as a valued partner to the private sector in support of economic growth and tourism recovery. Accordingly, the Minister responsible for tourism, who sits in another place, has brought the Fairmont Southampton Resort Act 2023 into force effective today.”

The Premier’s full statement follows below:

Mr. Speaker, let me first express my thanks to you, and to the whole House, for the indulgence by which I make this ministerial statement this morning. The subject of my statement today is a matter of national importance, and it is right that my first public statement to the people of Bermuda, is made to the people’s representatives in this Honourable House.

Mr. Speaker, the Scriptures teach us that we should not be weary in well-doing for in due season we will reap, if we faint not. Mr. Speaker, as of the close of business yesterday, I am pleased to advise this Honourable House and the public that the full financing of the redevelopment project of the Fairmont Southampton hotel has been achieved and all parties have funded their obligations such that the project can now fully commence.

Mr. Speaker, I can further confirm that the Government of Bermuda, as previously indicated in this Honourable House, is supporting this project with a sovereign guarantee of the sum of seventy-five million dollars, advanced by Clarien Bank to support the redevelopment. In accordance with the Government Loans Act 1978, I hereby inform this Honourable House, that guarantee was executed earlier this week.

Mr. Speaker, this is a $560m transaction which signals the most resounding endorsement of Bermuda as a tourist destination, of the jurisdiction as a place for sound investment and in the Government of Bermuda as a valued partner to the private sector in support of economic growth and tourism recovery. Accordingly, the Minister responsible for tourism, who sits in another place, has brought the Fairmont Southampton Resort Act 2023 into force effective today.

Mr. Speaker, the redevelopment and ultimately the reopening of the Fairmont Southampton is of profound economic importance. Its closure has been felt throughout our economy, reducing Bermuda’s airlift and limiting our capacity to host large group business. The reopening of the 600 plus room hotel will not only restore, but significantly reshape our hospitality landscape.

Mr. Speaker, put simply, the construction phase of this redevelopment is scheduled to last approximately 15 months and will create approximately 700 jobs. Moreover, the project will inject over $500 million in foreign capital into our economy, reinforcing the confidence of international investors in Bermuda’s potential and stability. Though this is not a new hotel, it is the largest single tourism investment in Bermuda’s history.

Upon completion, Bermuda will boast what will be akin to a brand-new first-class resort with modern rooms, world-class restaurants, and a myriad of amenities that will make every Bermudian proud. This redevelopment will set new standards in luxury and service, ensuring that Bermuda’s tourism product remains competitive on the global stage.

Mr. Speaker, since the pandemic demonstrated the urgency of economic recovery, we have set about the work to renew tourism as the unmistakable second pillar of our economy. As the Honourable Minister of Economy & Labour shared with the country yesterday, this Government is delivering on that imperative – with visitor expenditure steadily increasing – putting more money in the pockets of our tourism workers and those in our economy who support the tourism industry. In the years to come, our tourism sector will continue to drive economic activity, foster economic growth, and create many career opportunities for Bermudians.

Mr. Speaker, already we have seen the involvement of local talent and businesses. Many of the companies engaged in the initial phase of the redevelopment which we have witnessed this year are Bermuda-based, including Atlantic Mooring, BCM Construction, Insulcon Construction, On-Site Engineering, Performance Construction, and architectural consultant HDH Ltd.

Mr. Speaker, let me be clear, there is much more to do. The actual work of redevelopment must now be done and in that we can rely on the demonstrated track record of success of the developers, whose local activity at Rosewood Tucker’s Point and internationally speaks for itself. However, the developers statement yesterday gives an indication that the detailed planning required to execute a project of this scale has been done, and with materials and equipment enroute to Bermuda, work on the site will commence within the next month.

Mr. Speaker, the journey to this point has been an unlikely one. All the norms of development experience in transactions of this kind have been defied. On more than one occasion, the prospects have been so bleak that even the casual observer would have written off this deal as un-makeable. We have all heard the doubters, both inside this Honourable House and those outside who would wish for this Government to fail to satisfy their narrow political agendas – agendas, Mr Speaker, that are out of step with the national imperative for this redevelopment to proceed.

But, Mr. Speaker, despite those who have campaigned against this redevelopment – what has kept this entire transaction together has been a common purpose and understanding that speaks volumes of the promise of this island of Bermuda, that we call home. This is good news Mr. Speaker. This is good news for Bermuda and for Bermudians. This announcement represents a spark that will further ignite more entrepreneurship, business optimism and tourism confidence. Today, we mark a significant milestone; but tomorrow we turn again to the work to make a reopened and fully functioning Fairmont Southampton a reality.

Nowadays, Mr Speaker, no matter the economic indicators that say otherwise, many on this island are content to spend their days lamenting that the sky is falling and that the proposition of Bermuda is in decline. Thankfully, Mr. Speaker, they inhabit their own echo chamber – and the numerous private-sector investors in this project have stood firmly behind its vision proving the ultimate show of confidence in Bermuda’s economy, confidence in Bermuda’s tourism future, and confidence in this Progressive Labour Party Government. Thank you, Mr. Speaker.

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