A $170 million five-star hotel is to be built at the Ariel Sands resort after the scheme won approval from the Development Applications Board.

Work on the Hilton Grand Vacation Club is now expected to start within 12 months. It is hoped part of the new hotel will be opened within two years.

It comes after Hollywood star Michael Douglas, part of the Dill family that has owned and operated the resort for the past 50 years, helped secure interest from the world famous hotel group last year.

Ariel Sands executive director John O’Brien said last night: “We’re very excited. We’ve waited a long time for this.

“A new broom sweeps clean and we are hoping we bring the resort up to five star quality.”

The scheme is for ten buildings, mostly three-storeys high, housing 60 two- and three-bedroom vacation suites.

The buildings will be sprinkled around the site and will feature large glass frontages facing out onto the breaking waves of the South Shore.

There will be a central hotel and clubhouse complex with cascading water features running all the way through, past the reception area to a landscaped inner courtyard lined by boutique shops.

It will also boast a hotel lounge area and an outdoor infinity pool looking out on to the beach and ocean.

A restaurant that includes an outdoor patio for al fresco eating will be next to the main complex.

The main building will contain a restaurant waiting area and bar, a health and beauty spa, and a conference facility. Upstairs there will be ten hotel guestrooms.

Around the outdoor infinity pool are sun decks and wooden bridges across the pool. It will also be possible to swim from the infinity pool into a heated indoor swimming pool.

Mr. O’Brien said the hotel would retain its Ariel Sands name, and that Mr. Douglas’ family would retain a percentage of their ownership in the hotel.

“The Dill family will still be involved,” he said. “That’s nice. We wanted to keep that because it’s been a long time in the family.

“It’s good for the name of the hotel. Not just Michael and Catherine, but the Dill family in general are very well respected in the industry.”

Mr. O’Brien predicted people would like what they see at the hotel.

“They are going to be surprised,” he said. “It’s going to fit in nicely with the neighbourhood. They’re not high rise properties, but they’re going to be new and modern. It’s a winner for everyone.”

Premier and Tourism Minister Dr. Ewart Brown has previously spoken in support of the development. It is expected it will attract 9,000 new well-heeled visitors to the Island each year.

It is intended to phase the development in stages so that the resort remains open at all times.

The new venture will allow Bermuda to tap into an expanding community of 100,000 vacation club owners who already holiday at Hilton clubs in Scotland, Hawaii, Las Vegas, Florida and other destinations.

Members buy a fractional ownership and then can use their right to holiday in Bermuda or at other Hilton clubs and affiliated resorts around the world. The scheme won approval from the Development Applications Board on February 28.