Ground will be broken by November 2011 for the new Park Hyatt Bermuda, Premier Ewart Brown said this afternoon.

The hotel will be built on the old Club Med site featuring 100 rooms, a spa and fitness centre and an 18-hole Nick Faldo designed golf course.

Dr. Brown announced this afternoon that the Park Hyatt group had agreed to become an equity stake holder. Dr. Brown said the hotel chain was going to invest "millions of dollars" into the project which is thought to be costing in the region of $300 million.

“This is a major development project that will change the life and tempo of this town. For such a large commitment to be made in this economic climate is indeed remarkable.”

In 2008 Government signed a 262-year lease with Mr. Bazarian after paying for the demolition of the former Club Med hotel.

In 2007 Dr. Brown announced that five-star luxury hotel operator Bazarian International had won the contract to carry out the scheme at the St. George’s site. Since then Dr. Brown and Mr. Bazarian have hinted the date to begin construction was just around the corner.