Financial relief given for South Shore hotel project
A south shore hotel project has been granted financial relief from Government as it seeks to expand its inventory.
David Burt, the Premier, said the developers behind the Azura Hotel and Residences in Warwick had purchased the neighbouring Nautilus property at 88 South Road, Warwick to redevelop it as an expansion to the Azura.
Mr Burt said on Friday: “The intent is to develop Nautilus property in two phases. Phase 1A would redevelop the existing Nautilus main house into three units, creating between 20 to 24 new units.
“Phase 1B would renovate the remainder of the existing Nautilus house and infrastructure creating additional hotel-quality amenities including, but not limited to, landscaping, lighting, roadways and a new saltwater pool.
“The lower floor of the hotel residence building would be renovated to create two additional hotel residences.”
A second phase would create another 20 hotel residences – nine two-bedroom suites and 11 three-bedroom suites.
As a result of the work the property would host up to 60 units, although the units could be put together to create larger, multi-bedroom units.
Mr Burt said construction costs for the first phase of the redevelopment are expected to reach $3 million, while the second phase will cost $18.5 million.
He added that the redevelopment work would provide between 100 and 150 construction jobs during the three to four year development period.
“Upon completion of Nautilus, the combined Azura/Nautilus resort is expected to provide approximately 80 hospitality jobs,” Mr Burt said.
“This is welcome news and signals a strong vote of confidence in Bermuda’s tourism and represents another product offering in support of the rebuilding of the industry.”
In the House on Friday, Mr Burt tabled an order that offered economic relief for the project, including six years of duty relief for building materials and hotel furnishings, a six-year exception for hotel occupancy tax and employer-side payroll tax once the hotel opens, and one year of exemption from land tax beginning six years after the hotel’s opening date.
As part of the order, the hotel must ensure that 70 per cent of staff are Bermudian and a management training programme for Bermudians must be in place.
The Opposition voiced support for the development and the relief measures offered.
Craig Cannonier, the Shadow Minister of Public Works, said the redevelopment was “good news” for Bermuda and would provide an additional boost for the island’s economy.
Michael Dunkley, the Shadow Minister of Health, praised the Government for their support of the development, which will create another opportunity for Bermudians to find work.