Senators have approved measures to support continued investment into the Rosewood Bermuda development.

Mischa Fubler, the Junior Minister of Tourism, Transport, Culture and Sport, said the Tourism Investment (Rosewood Bermuda) Order 2026 would effectively extend tax relief for the hotel property.

Mr Fubler said: “Success in this aggressive and competitive tourism marketplace demands that every affiliated tourism business consistently stays at the cutting edge.

“The order before this chamber represents that kind of investment in a product proposed to be made by a key tourism site in Bermuda.”

He said that Rosewood Bermuda was an “iconic” hotel property where the owners intended to raise the profile.

Mr Fubler said that in 2018 TP HoldCo, the property’s owners, invested $25 million for the first phase of renovations, updating the guest rooms, common areas, dining outlets, beach club and club house.

He said the second phase of the work will include another $82 million in capital investments to cover additional hotel improvements such as pickleball courts, new food and beverage venues and enhancement to hotel amenities.

The works would also include the construction of eight new Rosewood-branded residences, which are required to be part of the hotel’s inventory for six months of the year.

Mr Fubler said the hotel owners had requested the Government revoke a previous tourism investment order for the site, which was set to expire in 2028, and replace it.

The new order would offer conditional relief for up to 15 years including an exemption from the employer share of payroll tax and exemption from land tax.

Mr Fubler added that for 20241-25, 90 per cent of those employed at the hotel were Bermudian, and the same is projected for the years to come.

Victoria Cunningham of the One Bermuda Alliance said the OBA supported the order and that the development of the property represented a significant investment in Bermuda’s tourism product.

Tawana Tannock, independent senator, said there was a need to assess the economic impact of extending tourism orders, but she was pleased to see the number of Bermudians employed at Rosewood.

Senators also approved the purchase of the Compass Point building in Hamilton for $14.5 million.

Mr Fubler told the senate that the move would help to reduce the Government’s reliance on renting office space, noting that $11 million is spent on commercial office accommodations.

He said that the purchase of the 81,000 sq ft office block was found to be a prudent and practical investment as it would help the Government save about $2 million per year in rent.

Mr Fubler said the purchase would also offer the “swing space” to complete refurbishments at other departments.

The Compass Point building, on a 0.78-acre lot at 9 Bermudiana Road, was listed for sale in 2024 for $19.5 million through Rego Sotheby’s International Realty.

In response to questions, Mr Fubler said that Government was looking at the building as a financial hub with occupants potentially including the Accountant-General’s Office, the Tax Commissioner’s Office, the Registrar of Companies, social insurance and cashiers.

Mr Fubler said: “There is a process to identify which departments will move to maximise the reduction in rents.

“That’s part of the focus, both the beneficial impacts on our customers, the people of Bermuda, as well as realising rent efficiencies.”

He said that no independent evaluation had been conducted, but noted the building’s original asking price.