Realtor announces new hospitality team
Coldwell Banker Bermuda Realty has teamed up with longtime Bermuda hotelier Mike Winfield and Morgan’s Point developer Craig Christensen to form a hospitality team of experts and advisors.
The hospitality development market is a niche that is emerging in Bermuda, Coldwell Banker Commercial and Bermuda Realty official Brian Madeiros said.
Sandra Christensen will also be part of the realtor’s new tourism development team.
They will address the needs of purchasers, sellers, developers and financiers, who have an interest or want to procure an interest in property zoned for tourism purposes, Mr Madeiros said.
“External (Global) relations with Pinnacle Realty, Newmark Knight Frank, and Firm Advisory Ltd., along with the Coldwell Banker Commercial network, provide extended reach and market knowledge,” Mr Madeiros said. “The goal of this eclectic group is to offer navigation through the complexities of hotel development in Bermuda.
“Our team can assemble the services you require so that you can effectively navigate the hotel development process in Bermuda, obtain the necessary market data and arket intelligence and efficiently carry out your due diligence.”
Mr Christensen writes about the Island’s construction costs in a newsletter out this week announcing the new hospitality team.
“Bermuda historically had extremely high construction costs,” he said. “Demand for services outstripped supply, and costs continued to escalate. Since 2008, however, the cost of construction has significantly decreased as a result of diminished demand.
“Traditional construction methods of using concrete block and steel have improved with new methods of construction. The important factor that has to be considered is the reduction of the labour component cost. Methods that can reduce that component need to be fully pursued by developers.”
For smaller developments, under 100 keys, there are a number of medium sized firms that can easily manage the construction process, he said.
“During a recent survey, the costs quoted per square foot can range from $280 to $350. These prices do not reflect the Hotels Concession Act which can save approximately 10% on these costs. All new hospitality construction and renovation will be given full duty relief under the Hotels Concession Act and that process has been greatly simplified and can be efficiently coordinated through Government officials.
“There are a number of recommendations to consider. Close attention to the mechanical and electrical components are vital. These costs are very high in Bermuda, and are a component that is generally overlooked and needs to be carefully studied. The design of the property is critical to ensure it is an efficient design so that the revenue generating space is a high percent of the build.”
He added Bermuda’s energy costs are high, and efficient design up front can save significant operating costs.
He concluded: “As a rule of thumb, an efficiently designed property should be constructed, furnished, and completely outfitted for around $800,000 per key in today’s environment.”
For more information see www.bermudahospitality.com.