Hotel renovations to take significant steps forward.
Westend Properties is excited to announce that the financing for the renovation of Bermuda’s iconic Fairmont Southampton has closed today. Capitalisation for the entire Southampton project is estimated at more than $550 million.
“While we have had the financing commitments to fully fund this redevelopment in place for some time, it has been a complex process to finalise all the necessary documentation with the various parties to the transaction,” said Alessandro Colantonio, Chief Investment Officer at Gencom, the managing partner of Westend.
“Late last year we stated that the project was fully funded and that we were progressing to closing. We are so pleased to share that the closing date is today. We have completed the required documentation to close the financing and the balance of funds have been remitted for this redevelopment.”
Our confidence in the funding commitments allowed us to move forward with the pre-development steps earlier this year, including the demolition and mobilisation work at the site. Construction at the hotel and Beach Club will nowenter its next phase.
To that end, we are very pleased to report thatapproximately 75 shipping containers carrying building materials, scaffolding and additional construction equipment will be arriving in the first half of October and will make their way to the site. We apologise in advance for any traffic disruptions this may cause. By November, the entire hotel will be covered in scaffolding in preparation for the next steps in the renovation.
We expect that at least 200 construction-related positions will be available for local talent and are planning to publish employment ads by late September. As mentioned in past releases, BCM Construction, Performance Construction Ltd. and Frazee Construction Co. are the contractors taking the lead on the various aspects of the renovation of the hotel and Beach Club.
As Chris Furbert, President of the Bermuda Industrial Union (BIU), explains, “This next chapter in the renovation of the Fairmont Southampton is so important – not just for BIU members, but also for Bermuda’s position as a premier tourist destination. We are all looking forward to working together to bring this project to fruition.”
All of the committed parties involved in the fully funded renovation – including key lenders Starwood Property Trust and Clarien Bank – are excited to see the progress being made. Lotus Capital Partners, led by Faisal Ashraf, acted as capital markets advisor to Gencom on this transaction.
“We are thrilled to be working with high calibre, blue chip partners on this venture,” said Colantonio. “As we continue to forge ahead, the public will see very real evidence of this progress in the coming weeks.”
Simon Van de Weg, Chief Banking Officer at Clarien Bank,said, “Clarien is proud to play a pivotal role in the financing of this transformative project, which will revitalise one of Bermuda’s most iconic resorts andstrengthen the island’s position as a premier destination. This underscores our commitment to supporting the growth of Bermuda’s economy through innovative financial solutions that meet the evolving needs of the Bermuda market.”
The planned overhaul to the Fairmont Southampton features a number of significant updates to nearly every aspect of the historic resort, including a stunning makeover of all guestrooms, bathrooms and corridors, with high-end furnishings and fixtures; the transformation of the lobby, including a new reception area; restoration of the hotel’s ballrooms and meeting rooms to attract and welcome Bermuda’s most important events and celebrations; a fresh new ambiance for the restaurants,with sophisticated menus to suit every need; and the complete renovation of the Beach Club which has been designed as the resort’s signature amenity and will include a new oceanside beach grill as well as a spectacular resort-style pool complex.
According to current timelines, construction on the Beach Club will be completed by the Fall of 2025, while the hotel is expected to fully reopen by Spring 2026.
A Government spokesperson stated, “This is exciting news and represents a resounding vote of confidence in Bermuda and the potential of our tourism industry. The Government of Bermuda has maintained that the redevelopment of this site is critical for the continued growth of this economy. Bermudian employment opportunities at every stage are key to our determination to play our part in delivering this project. We look forward to work starting in earnest and for this redeveloped hotel becoming the demonstration of a tourism renaissance in Bermuda.”
“We are so thrilled to have reached this critical milestone,” said Karim Alibhai, Founder and Principal of Gencom. “This has been an incredibly complex transaction, with the involvement of the Government and multiple lenders. But this is where Gencom excels – we are visionaries and dedicated creators of destinations. Our team successfullynavigated the challenges we’ve faced and we remain unwavering in our commitment, both to this project and to the people of Bermuda. We are so grateful to everyone who was involved in this achievement and especially want to thank Premier Burt and the Government for their unwavering support and belief in this project. We can’t wait to reopen the Fairmont Southampton and welcome everyone back to this world-class destination resort.”
A video overview of the planned hotel renovations is available here: https://drive.google.com/file/d/16cYAMxvpq_0vmtPyUweF0ZW2so0Qw2eF/view
About Gencom and Westend Properties Limited
Westend Properties Limited is an affiliate of Gencom, an industry-leading hospitality real estate investment and development firm based in Miami. The Gencom affiliate acquired Westend Properties in 2019 in connection with the purchase of the Fairmont Southampton. In addition to building a reputation for successfully delivering on its development projects, Gencom is an innovator, partnering with leading luxury hospitality brands to co-develop and construct some of the first luxury condo-hotel rental models which have become ubiquitous in the hospitality industry today. The company has emerged as a leader through its development and ownership of Ritz-Carlton, Four Seasons and Rosewood properties around the world.
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