The 9 Beaches resort in Somerset Island, Sandys.

9 Beaches will close for the remainder of the year as it undergoes an $80 million redevelopment. Premier Ewart Brown and Minster of Works and Engineering Derrick Burgess announced the redevelopment along with owner David Dodwell and Nordica Development company owner Stephane Boivin.

Mr. Boivin's Canadian company has invested in IRC Sandys Limited, which owns the hotel, and will build the new mixed-use facility. The redevelopment will see a maximum of 150 units on the property; there are currently 86. Mr. Dodwell said: "The partners have always had the goal of improving and expanding the development on Daniels Head.

This expanded 9 Beaches development will provide additional jobs, both construction and ongoing resort employment, continue to enhance Bermuda's appeal as a world class tourism destination and, as the first new development to start in Bermuda in the past three years, will add a new dimension to tourism accommodations in the West End."

9 Beaches is one of two hotels on Government-owned property; the other is Coco Reef Resort on the South Shore in Warwick. The lease for the 17-acre Sandys property will be made public once it is signed — a move expected to happen within the next two months. The length of the lease will be extended, it is not yet known by how much.

Mr. Dodwell said Government have "fully supported" them during the planning stages of adding that Minister Burgess and key people at the Bermuda Land Development Company, the Government entity that owns the property, had provided "personal insight" to help create a new development.

The Premier said: "This deal has come together thanks to the efforts of several participants in a true public/private partnership.

"Working with the resort owners IRC Sandys Limited, the BLDC have fully embraced the efforts of the current owners and new partners, Nordica, in the planning stages of the new development. This development is yet another step on the path to revitalising Bermuda's tourism product to ensure we regain our reputation as a first class resort destination."

He continued: "This new development is also going to provide jobs during the redevelopment as well as additional jobs once the resort reopens in 2011. All indications are that plans are being finalised, details worked out, and ground is expected to be broken later this year."

This represents the first major hotel redevelopment since Newstead Belmont Hills was revamped and reopened in 2008. The downside is that the hotel will close this summer and not reopen until next May.

Mr. Dodwell said financing is already in place and construction will start in the fall of this year. And he added that while final designs had yet to be finished the new 9 Beaches would not be an ecological hotel, adding that it was "probably a mistake" when they went that direction last time.

The whole redevelopment is expected to take five years although the hotel will reopen in May 2011.

"Naturally, in the short term, this will be disappointing for the staff," he said. "However, within a year, it is expected that the resort will be up and running, with the first phase of the upgrade aide development completed.

"The result will be a first class, mixed use development in a modernised- Bermudian-themed manner, including a complete upgrade of the current over the water units, dockside restaurant and lounge and the addition of new public space, permanent accommodation units and further enhancement of the resort's grounds and amenities."

The hotel will most likely include lease-back units as well as traditional hotel rooms.

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