Tax relief expected for Elbow Beach Hotel project
The Government is expected to offer duty relief for the proposed redevelopment of the Elbow Beach Hotel by its new owners.
The Loren Group announced this year that it had purchased the shuttered Paget property with plans to demolish the hotel structure early next year and break ground on a new property at the site next summer.
Owen Darrell, the Minister of Tourism, Transport, Culture and Sport told the House of Assembly today it was proposed that the developer be granted relief under the Tourism Act 2017 for the project.
“The developers intend to expand the existing Loren ‘footprint’ to now include this newly purchased site, operating one hotel product in two locations,” he said.
Mr Darrell later added: “The proposed redevelopment is set to comprise 176 ‘keys’ including hotel rooms, luxury villas and luxury condominiums.”
MPs heard that the legislation offers a range of relief for tourism developments including full relief from customs duty in respect of building materials, furnishings, fixtures and equipment needed for the project.
Hotels can also receive a full exemption from hotel occupancy tax and full exemption from the employer’s share of payroll tax for 15 years, along with six years of relief from Land Tax.
The Elbow Beach Hotel closed in early 2020 because of the Covid-19 pandemic.
While it was initially expected to reopen the following year, it remained shuttered and in 2022 it was confirmed that owner Saudi Prince Khaled bin Sultan bin Abdullaziz Al Saud was in negotiations with a potential buyer.
The resort went into liquidation in October 2023 amid claims that it was massively in debt. By that time, the main hotel building was understood to be in a state of disrepair after sitting empty.
In April, the Loren Group announced it had purchased the property with plans for a “comprehensive redevelopment” of the site and the nearby Fritholme Gardens.
Ryan Babcock, a co-owner of the Loren Group, told The Royal Gazette this month that discussions continued with the Department of Planning, but that the development would include “hospitality elements, an expanded spa area and some real estate”.
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