Luxury brand hotel group Park Hyatt has reaffirmed its confidence in Bermuda by investing a "significant" amount into a $300 million St. George's development.

Yesterday, Premier Ewart Brown and Carl Bazarian announced Park Hyatt officially agreed to become an equity stakeholder in the project, on the old Club Med site. Previously they had agreed to manage the resort facility.

Dr. Brown, who has championed the scheme since it was first announced in 2007, said: "There were those who said it couldn't be done; there were those who said it would never happen; there were those who said the future for tourism in St. George's was bleak.

"We are pleased to stand before you today with proof that those predictions and predictors of doom and gloom were absolutely, positively wrong!"

Mr. Bazarian said the Park Hyatt Group's investment should allay the fears of those who doubted the hotel project would go ahead in the current economic climate.

He would not say how much the company has invested, but said it was "significant" and confirmed that his company had obtained a loan from HSBC and invested its own money into the $300 million development.

"I think it is an affirmation of the Town of St. George," he said. "Park Hyatt saw how serious Government was towards really going toward their Platinum Period.

"They have sent delegations over the years, they have had about eight visits including their operations department and their development department.

"They have made this investment because they believe they will see returns on their money.

"I wish to thank Dr. Brown for his vision and commitment to us for being the catalyst for his Platinum era legacy — restoring Bermuda where it belongs as the ultimate luxury destination in the Atlantic and Caribbean."

Park Hyatt's Director of Development and Corporate Communications, Laurie Cole, said: "Park Hyatt have said they will use their capital in ways to help us achieve our strategy of being where our guests are and going where they want to be.

"If there is a situation where we think it will be helpful to put our capital in, we will."

The development will be built "concurrently" Mr. Bazarian said. It will include the 100-room Park Hyatt Hotel as well as 71 hotel condominiums, 39 villa residences and 12 single family homes.

Also on the 125-acre site will be an 18-hole Nick Faldo-designed golf course, an 18,000 square-foot spa and fitness centre as well as two tennis courts.

Guest will be able to dine at two full service restaurants and two cafés or enjoy the Beach Club.

There will also be staff housing for 160 employees and an on-site wastewater treatment plant and reverse osmosis water purification facility.

Speaking of the site Mr. Bazarian said: "It is indeed a precious asset that we intend to enhance to a luxury resort with historical preservation."

Mr. Bazarian added that the terms of the 262-year lease had not changed with the new investors.

"We are waiting on planning," he said. "Once we have planning we will go ahead with meeting various construction schemes and then start building. No one has been chosen yet to build the development. We are hoping to break ground in November 2011, but if planning comes through sooner we can begin sooner."

He said a project this size could take 24-30 months to complete.

Mr. Bazarian added that no Government money had not invested in the project, but their help had been invaluable.

"I have been around a long time and working in primarily Latin America, Central America and all over the Caribbean — this experience with your Government has been my best experience in terms of commitment, responsiveness, transparency and passion in terms of tourism growth."

In addition to thanking Dr. Brown he gave praise to "point person" Cabinet Secretary Mark Telemaque and local representative E. Michael Jones "who withstood slings and arrows on a daily basis".

Dr. Brown added: "We stand together on the threshold of a new beginning for tourism in Bermuda. Soon we will see the boards come off the store windows. Soon we will see these streets lined with tourists, and soon that vacant space on the hill will be occupied by one of the most exciting tourism facilities Bermuda has ever seen!"