Bermuda's Building Boom

Bermuda has long been an established and highly regarded incentive destination, known for its easy access, numerous golf courses, scuba diving and other water activities, exceptional service, and its reputation for being relaxed yet upscale and sophisticated. Its incentive-level properties and venues have been in place for decades. In recent years, however, the island has faced increased competition as planners look for the next up-and-coming destination to impress their incentive earners, and as new, luxury resorts have opened in nearby destinations.

But it's now Bermuda's turn to reap the rewards of the burgeoning resort market. More than $1.6 billion worth of development projects are in the pipeline for the island, bringing more than 1,000 new luxury hotel rooms to the island by 2010.

"The market drifted away, starting in the mid-1980s, with the advent of the popularity of the cruise market combined with construction of many competitive resorts in the Caribbean and Florida," says Eric Brooks, general manager of Tucker's Point Hotel & Spa, the project that arguably launched the current building boom. "Bermuda went to sleep as far as reinvesting capital and keeping products modern and competitive. But we still have a great product here, and we've been able to keep the pristine beauty of the island and not allow commercialism to creep in. We saw an opportunity to unlock that value."


On the Books

Tucker's Point Hotel & Spa is the final piece of the Tucker's Point Club, a 200-acre waterfront community that already boasts luxurious golf, beach and tennis clubs. Hotel guests will receive temporary membership during their stay. The 103-room hybrid hotel, going up around the former Marriott Castle Harbor, is scheduled to open in mid-2008, with an investment cost of more than $800,000 per room, built in cottage-colony style. Eighty-eight of the units will be available to the group market and will feature balconies and terraces, furnishings typical of five-star properties and walk-in closets.

A 12,000-square-foot spa, with 12 treatment rooms and suites, will overlook the lush Coffee Chine grotto, with a lawn for yoga and tai chi perched above the garden. Rates are expected to range from $600 to $2,000 per night. "We will have an extraordinary product and it will feature well in the marketplace," says Ann Walker, director of sales and marketing. "Of course rates will vary depending on the group size and type of incentive program, such as if it's a buyout. A prototype room will be ready in late spring, and any planners visiting Bermuda can tour it."

Among other projects, the venerable Wyndham Bermuda Resort & Spa, which just received a $50 million upgrade last March, closed its doors on Oct. 31 to undergo an additional $150 million in renovations that will convert the site from a three-star hotel into the five-star Southampton Beach Resort. The renewed property won't reopen until 2009, and will feature about 250 beds and expanded dining facilities, as well as a new recreational club with squash, a pool, a fitness center and an expanded spa.

Hilton Grand Vacation Club is redeveloping the Ariel Sands Resort, which has been in the Douglas family (as in the actor Michael) for more than 50 years. The existing 41 cottages will be replaced by a 214-room resort, named The Hilton Club at Ariel Sands. "The site's great house will remain as a historic part of the property," says Gwen Thomas, groups manager for the Bermuda Department of Tourism. "It's set to open in 2008, and it's been stated that they will add a conference center."

Possible Porjects

Bermuda's The Royal Gazette newspaper has reported much interest in the former Club Med hotel, closed since 1988, and that the Ritz-Carlton is planning a 150-room business hotel in Hamilton at the Par-la-Ville car park site. When asked about the project, however, corporate vice president of public relations Vivian Deuschl said, "There is no truth to that; it's pure speculation."


Southlands—The Bermuda Resort project is being headed by an independent developer in partnership with Dubai–based Jumeirah Hotels and Resorts. Thomas says the hotel will feature about 250 rooms and open in 2008. A marketing video for Southlands available online exudes bespoke, five-star sophistication. As of press time, an official announcement was set for the week of Jan. 18; check for more details in mid-January on www.ManageSmarter.com.

These projects are already generating a renewed interest in Bermuda from incentive groups. "Incentives are a mainstay business for us because we have such a cultural and historical community. The 'wow' factor is built into the island," says Thomas. "We're getting a lot of incentives; the numbers are up all around and we expect that to continue into 2007, and beyond."

Planner Resources

Bermuda Department of Tourism

The bureau offers a $200 per person credit for groups meeting between now and March 31 and Nov. 1 to March 31, 2008. Visit www.bermudatourism.com for details.


Accommodations

Existing groups hotels:

Elbow Beach Club Resort
235 rooms
www.mandarinoriental.com/bermuda

Fairmont Hamilton Princess
410 rooms
www.fairmont.com/hamilton

Fairmont Southampton Princess
600 rooms
www.fairmont.com/southampton