New Elbow Beach Hotel planned with 15-year tax breaks
The new Elbow Beach Hotel is to be re-sited away from the old location, farther west along the 44-acre property, and will enjoy a tax holiday for up to 15 years.
Developers propose to raze the old hotel buildings possibly by the end of the year. A new hotel could be in place by 2029.
There is substantial interest in the proposed redevelopment as the next phase of a tourism renewal that should bring the Fairmont Southampton back online in the year ahead.
A commercial realtor believes that similar to the Fairmont, the future for Elbow Beach will benefit tourism, construction, retail and international business.
Penny MacIntyre, partner at Rego Sotheby's International Realty, said there is much anticipation for the rebuild at the Paget property.
She said: “Elbow beach is in design and development phase and they are going to be breaking ground there with the demolition of the old hotel. That’s expected to be either the end of this year or early 2027.”
Some 22 luxury residences are expected to be delivered in addition to the main hotel.
She said: “Under pre-sale at the moment, there’s two bedrooms, three bedrooms, four bedrooms and also there’s a six-bedroom, and those are on concept terms at the moment. It's early stages, but we already have people who have expressed interest.”
Planning approval for the project remains outstanding for a less than 80-key property, after the century-old lodgings suffered a Covid-era closure of what was previously a near 600-room beachfront hotel, once a leading light of Bermuda’s tourism scene.
A year ago, a special Act of the legislature provided tax and customs duty relief for both the Loren redevelopment at Pink Beach and to facilitate the development of the Loren Hotel at Elbow Beach.
Similar to the former, the Elbow Beach portion includes full relief from customs duty in respect of any building materials, furnishings, fixtures and equipment necessary for the building, furnishing and equipping the hotel, for a period of 15 years after the Act takes effect.
It includes full relief in relation to hotel occupancy tax for a period of 15 years and full relief from the employer’s share of payroll tax, also for 15 years.
Full relief is also available for land tax for a period starting six years after the opening date of the Elbow Beach Hotel and ending on the 15th anniversary of that opening date.
When the Tourism Investment Amendment Act 2023 was put in place, it extended tax relief for new hotels from ten years to 15, and for a refurbished hotel from five years up to 15 years.
At the time, Craig Cannonier, the Shadow Minister of Tourism, Transport and Culture, did not support the Bill because there was no explanation as to on what basis the huge increases in tax and duty exemptions were decided.
Speaking to The Royal Gazette last Friday, he conceded the importance of helping developers at a time when tourism needed investment. But he added the concessions provided way too much latitude for a jobs promise that could not be fulfilled.
Mr Cannonier said: “Why put something forward that is so unrealistic? We’ve already heard there is a shortage of Bermudian hotel workers, so it is illogical to believe the hotels will get the 70 per cent local staff required, unless they poach from other properties.
“Then, the Government will have to come back to the House [of Assembly] with another plan. It seems like this measure [the 70 per cent staff requirement] was only to appease their base.
“And they still have not explained how they got to 15 years. I’m still waiting for an answer to my question of the day: ‘Where is the analysis?’”
The Elbow Beach developer is Sardis Developments II Ltd, a company incorporated in Bermuda on September 18, 2024 and amalgamated with EBH Sub Ltd on April 4, 2025.
• For more on the The Loren (Pink Beach and Elbow Beach) Bill 2025, see Related Media
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