Luxury hotel chain Park Hyatt signed a management agreement with developer Carl Bazarian to run a new hotel at the old Club Med site at a ceremony on the Cabinet grounds yesterday.

While Park Hyatt had already been linked with the proposed $294 million five-star hotel the signing witnessed by six-time Major winner Nick Faldo, who will redesign the St. George's Colf Course (SEE SPORTS ), and Premier Dr. Ewart Brown formalises the deal after other hotel projects have been hit by the credit crunch.

Mr. Bazarian said work would begin next year and the hotel should be ready by the first quarter of 2012 or even late 2011.

Park Hyatt Bermuda will offer a 100-room hotel, 111 visitor units and approximately 30 fractional ownership units.

The resort will also include four eating outlets, a 14,000 square-foot Hyatt Pure spa and fitness center, a private beach club, two swimming pools, tennis courts and nearly 4,000 square feet of meeting and function space.

Dr. Brown said Park Hyatt was one of the most honoured hotel brands on the planet.

He said:"After today our East End gem will be formally linked with the world famous Park Hyatt brand in a partnership that will usher in the tourism revival St. George's has been promised for decades. "

Rakesh Sarna, chief operating officer of the Global Hyatt Corporation, credited Mr. Bazarian for pulling together the deal between his group, Bermuda and Mr. Faldo.

Quoting Dr. Brown he said:"Bermuda is like a house which is small in size but big on charm. That statement resonates with Park Hyatt."

Carl Bazarian, of Bazarian International and Addax Holdings, said:"This project would be a catalyst to put Bermuda where it rightfully belongs.

"This will be, it should be, the luxury destination in North America as well as the Caribbean.

"Mr. Bazarian thanked Government for giving his team the confidence and momentum to pull the project together.

"This is going to happen," he said.

Mr. Faldo, who lived in Bermuda for two years, said he understood the buzz it would create on the Island

.He added:"I am confident we can bring something very dramatic to your shoreline and some very spectacular golf holes.

"Dr. Brown said attracting developers and investors to Bermuda to build new hotel product was a colossal undertaking.

"That might explain why it has been 30-plus years since Bermuda has seen a new resort property of this size.

"It might also explain why so many would-be developers have flirted with the coastline in St. George's, but have not seen their projects through to completion.

"Those who know me understand that I'm not one to duck a challenge, no matter how colossal. I have not let up on the Government's pursuit to revive tourism.

"We have been relentless and I expect today's agreement-signing proves to the doubters just how serious we are.

"The bright future for tourism in St. George's is now near enough to see, close enough to feel.

"He said Park Hyatt was one of the most celebrated hotel brands on the planet.

"Just last week Business Traveler Magazine named Park Hyatt the best hotel chain in the world just one more international award for a chain that consistently accumulates accolades."

Dr. Brown added: "The current economic climate around the world gives us all unease about the future it gives us plenty of doubt about lofty promises.

"In Cabinet, each Tuesday, like today, managing the economy during these difficult economic times is at the top of the agenda.

"But when I look across this table at the top-tier talent we have assembled, I am encouraged by the future not intimidated."

There are 24 Park Hyatt brand hotels across the world with an additional 10 under development.

Current locations include; Baku, Beaver Creek, Beijing, Buenos Aires, Canberra, Chicago, Dubai, Goa, Hamburg, Istanbul, Melbourne, Mendoza, Milan, Moscow, Paris, Philadelphia, Saigon, Seoul, Shanghai, Sydney, Tokyo, Toronto, Washington DC, and Zurich.