The United Bermuda Party is sceptical a hotel on the former Golden Hind property will materialise.

Opposition Senator Michael Dunkley said he believed the announcement was part of Premier Ewart Brown's farewell tour. The Premier has said he will leave office in October this year.

On Tuesday Government announced that construction will begin on a low cost housing development in four weeks. Developer Larry Swenson added that construction of a hotel on the same Grand Atlantic Resort Development property will begin in six months.

He added that it was "fully financed" by the Bank of Butterfield.

A spokesman for the bank said it would be providing financing for the acquisition of the land on which the Grand Atlantic project will be constructed and had committed to providing a portion of the financing required for the development of the affordable housing units on the property.

Yesterday Senator Dunkley said: "The Premier made a big deal at Tuesday's press conference about fulfilling the promise of a new hotel.

"But given so many similar and repeated announcements in the past at so many other still undeveloped locations, we remain deeply sceptical; particularly considering the hotel is not to break ground for another six months and the Bank of Butterfield statement did not include any reference to supporting the construction of a hotel.

"It is difficult not to see the hotel announcement as just another piece of fluff thrown out by the Premier to a public he clearly considers gullible. There's been too much of that in the past.

"It strikes us that the Premier's legacy-building farewell tour is driving the hotel announcement as opposed to concrete arrangements."