Progress report - Grand Atlantic
The Ministry of Public Works, on behalf of the Bermuda Housing Corporation (BHC), has announced today that the selection process as it relates to the Grand Atlantic Condominium - Request for Proposal (RFP) has been completed.
The RFP was re-issued on May 2nd 2016 and subsequent submissions assessed on their merits based on the published criteria in the RFP.
Major Barrett Dill of the BHC said, “These criteria highlighted the tangible impact of the proposed developments on our community from a social and economic impact, with an emphasis on job creation opportunities and the return on investment for the Bermuda Government.”
In order to accommodate occupational needs as it relates to the numerous stakeholders of the Americas Cup and to be fully supportive of Bermuda’s role in the 2017 event, the published RFP specified that development can only occur after 1st September 2017, following the successful conclusion of the 2017 America’s Cup35 racing series.
The decision to select the Bermudiana Beach Resort team (BBR), led by resort specialist Robert MacLellan of MacLellan & Associates, was made following the due diligence period as the proposed condominium hotel development was seen to provide the best value for money and was most closely aligned with the Government’s goals for increasing tourism accommodations.
MacLellan & Associates’ business plan has been modified to produce a greater financial benefit for the Bermuda Housing Corporation in a joint venture and allows for more cost efficient project financing. The developer has received a commitment to source conversion funding from the same finance house which offered funding for the Bermudiana project on the joint venture structured basis in early 2016 .
Robert MacLellan said, “The opportunity to create an economically sustainable new tourism model, which can attract external investment, is exciting because the physical structure of the buildings already exists and Bermuda urgently needs new mid market hotel inventory.”
A condo hotel is defined as a development which is legally a condominium but which is operated as a hotel, offering nightly rentals with front desk and resort leisure facilities. The condominiums will be sold as vacation homes with a maximum of 90 nights per year owner occupancy. When owners are not in residence, the design allows the units to be rented as hotel suites and rooms and owners benefit from that income stream.
The day to day operation of the resort’s restaurants, bars and spa will be undertaken by local management with several support services, including laundry, outsourced to local companies. The resort operation and marketing will be supported by an international boutique hotel brand. Final negotiations are ongoing with two interested companies and a final selection will be made this month. This arrangement will enable the Bermudiana Beach Resort to benefit from an international reservations system and a strong brand loyalty programme. The brand affiliation also facilitates the resort being marketed by sales offices and via over 5,000 group hotels around the world.
MacLellan & Associates is a Caribbean-based hospitality, tourism and leisure consultancy firm. Mr. Robert MacLellan, who first came to Bermuda to work in the hospitality industry over 30 years ago, has assembled a local team to facilitate the repurposing of the existing property. Currently architectural firm OBMI and realtor Coldwell Banker Bermuda Realty have been appointed as team stakeholders. Other local companies and service providers will be appointed in due course.
