Premier Ewart Brown officially kicked off the $300 million revamp of the former Wyndham hotel yesterday.

A new five-star hotel is being built by Scout Real Estate Capital on the 32-acre oceanfront site in Southampton and is expected to open in 2010.

Alan Worden, CEO of Scout Real Estate Capital, said: "We are honored to have Premier Brown take the first steps in the redevelopment of this exciting project,"

"It is a sign of his commitment to helping Bermuda realize its potential as a top tourism destination. The new Southampton Beach Resort will uniquely capture the essence of Bermuda, and allow visitors to enjoy experiencing this magnificent island."

The Premier said: "I am happy you are here. Some people have wondered if this would ever happen and here you are getting it done."

The new Southampton Beach Resort will be the first hotel of its size and kind built in Bermuda in decades.

It will feature a 150-room hotel, a luxury spa and fitness center, several pools and restaurants and shopping venues. It will also be built with sustainable development practices and utillise energy saving measures.