New owners to revamp Tucker’s Point
Rosewood Tucker's Point Hotel and Resort has been sold to the Miami-based firm Gencom and is out of receivership.
According to an official announcement yesterday, the hospitality development company will invest $25 million into the property, with additional follow-on commitments for future development.
However, other financial details of the purchase were not disclosed.
Karim Alibhai, the principal of Gencom, said: “Gencom's decision to acquire Tucker's Point reflects our firm's longstanding strategy of unlocking value by targeting one-of-a-kind assets in markets that we consider undervalued and poised for long-term growth.
“Bermuda benefits from direct flight access from Europe and the eastern coast of the US, making it a natural destination for international travellers and residents in search of an island destination offering luxury accommodations.”
Alessandro Colantonio, senior vice-president of acquisitions for the company, said: “Benefiting from a picture-perfect location, the strength of the Rosewood brand, and amenities capable of impressing the most discerning travellers, Tucker's Point is already a sought-after international destination.
“Our repositioning and renovation plans will further enhance the resort's appeal, while creating new opportunities for residents looking for a place to call home in Bermuda.”
Gencom seeks to “elevate” every aspect of the resort, renovating guest rooms and adding new food and beverage venues, in addition to new meeting spaces.
The new owner also intends to develop, market and sell “branded and unbranded luxury real estate properties, including townhouses, single-family homes, villas and condo-hotel units oriented towards the waterfront and golf course”.
A spokeswoman for Rosewood Hotel and Resorts meanwhile confirmed that the purchase went through on Wednesday, adding that staff at the hotel will not be affected.
“The resort will remain under the management of Rosewood Hotels and Resorts, and the transition to new ownership will not have an impact on the staff, operations or overall guest experience,” she said.
“Rosewood Tucker's Point will continue to offer the same timeless luxury that guests have always known and loved.”
Senator Michael Fahy, the tourism minister, said the government was thrilled to welcome Gencom to the island.
“Gencom's proven expertise and long history with leading hotel brands makes for perfect participation in the bright future of Bermuda tourism. This investment is another indication of confidence in Bermuda, further demonstrating that a tourism renaissance is alive and well.
“With major new investment being made in the existing facility, this hotel will continue to create exciting products and services for our visitors and locals alike. Gencom has amazing plans in terms of upgrades, and we have worked closely with their team, through the Economic Development Committee, to assist.”
The Bermuda Tourism Authority also hailed the sale as a success, with Roland Andy Burrows Jr, chief investment officer for the BTA, saying: “Gencom's investment will bring direct and indirect impact to Bermuda's economy and tourism sector as we strengthen the island's brand as a premier destination.”
Kevin Dallas, BTA CEO, added: “Like Gencom, the BTA believes Bermuda's tourism market is poised for long-term growth. The island is on a pathway to produce an additional 1,500 rooms over the next ten years.
“Today's news that Rosewood Tucker's Point is under new ownership and due to receive a $25 million makeover investment will light a fire under other investors considering Bermuda for their portfolios.
“It's also helpful to talk about this development as the 35th America's Cup approaches. We can add the Tucker's Point news to our talking points as the team pitches tourism-related investment opportunities to potential investors while they're here enjoying the racing and enjoying Bermuda.
“The Bermuda Tourism Authority looks forward to working closely with Gencom and the other new investors we will meet over the next six weeks.”
Jones Lang LaSalle represented the seller in the transaction while Rego Sotheby's International Realty acted as a local agent. The financial and operational restructuring of the various Tucker's Point seller companies in receivership was led by Roy Bailey and Keiran Hutchison of EY Bermuda Ltd, and financing was provided by HSBC Bermuda.
The Hamilton Parish resort property went into receivership in 2013 and was put up for sale in 2015, with no specific price listed.
At the time, receivers EY Bermuda say they were “seeking suitable investors to ensure the long-term success and sustainability” of the property.
Despite the challenges, the resort has won the Forbes Travel Guide Four-Star Award for the past two years.
Last year, the House of Assembly approved draft concessions for the resort to support a number of construction and renovation projects including a $6 million renovation at The Point restaurant and enhancements to the pool, beach club and marina.