An application to switch the use of the Bermudiana Beach property from tourism to residential has been withdrawn by the Bermuda Housing Corporation.

Planning documents showed that the change-of-use application for the Warwick site, submitted in 2025, was formally withdrawn last month.

The BHC stated in a December 2 e-mail that it would reapply at a later date.

In response to questions from The Royal Gazette, a spokesman for the Ministry of Housing and Municipalities confirmed last week that the BHC has withdrawn the application on a “procedural basis” after receiving guidance from the Department of Planning.

The spokesman added that the application will be resubmitted in the coming weeks.

He said: “In the meantime, there is no change to the current planning status of the property.

“The existing planning designation remains in place unless and until a new application is formally submitted, reviewed and determined through the established statutory planning process.

“As part of the preparation of the revised submission, technical matters identified during the initial review process will be addressed in accordance with normal planning requirements.

“Further details will be available once the new application is formally submitted.”

The spokesman did not elaborate on what guidance was received from the planning department or what changes would be made in the revised submission.

He confirmed that approximately 72 per cent of the residential units at the property were occupied.

The units on the site were originally developed for the Grand Atlantic affordable housing project, but the plans were scrapped after only two of the 78 units built were sold.

It was later announced that the project would be converted into a boutique condominium hotel and rebranded as the Bermudiana Beach Resort with 94 condo units for sale and 110 hotel keys.

The resort, to be run by the Hilton Group, was scheduled to open by the summer of 2025. However, in late 2024, the Government jettisoned the project after a study found the hotel model was no longer financially viable.

Instead, it announced that the 94 units — a combination of 25 studio apartments, 25 one-bedroom units, 28 two-bedroom units and 16 three-bedroom units — would be put on the rental market once construction was completed.

Zane DeSilva, the Minister of Housing and Municipalities, formally opened Bermudiana Beach Residences in April 2025 and announced that nine of the units were rented out, with another 13 “under agreement”.

The Department of Planning website showed that drawings related to an application to change eight of the blocks at the site from tourism to residential were submitted on March 24, 2025, but were later superseded.

The entry indicated an application date of May 15 last year with “final” drawings uploaded in July.

A government spokesman said on May 1, 2025: “With the concurrence of the Department of Planning, the units are occupied pursuant to their existing licence.

“Following the consideration of the planning application, it is expected that the classification will be residential.”