Princess on the market in move to fund expansion plan

FRIDAY, FEB. 10: The owners of the Fairmont Hamilton Princess have put the hotel on the market to attract extra investment.

Global Hospitality Investments says it is looking for an equity partner to help fund the company’s $50 million expansion project.

The project, which has just received in-principle approval, involves the construction of 60 to 70 marina slips behind the hotel as well as a 39,000 square foot expansion of the Poinciana Wing for extra guest rooms.

Jennifer Chase, COO of Global Hospitality Investments, told the Bermuda Sun that although the Fairmont Hamilton Princess had appeared on the international CBRE real estates website, it did not mean the hotel was for sale.

She said: “The owners of Fairmont Hamilton Princess are looking for an equity partner to fast track the project.

“That, we believe, is the best way to get the project underway.

“We have just received in-principle permission and we are very excited about the project and still believe in it.

“The current global financial conditions make this the most realistic way of progressing with the project.

“Our commitment to Bermuda remains the same as it ever has been. We are looking for someone who would come in and believe in our project and believe in Bermuda.

“We have invested $24 million in the hotel since we took it over in 2007. But we are willing to give up part of our ownership to get the project financed.”

The advert on the CBRE website states: “CBRE, as exclusive advisor to Bermuda Resorts Limited is pleased to present the fee-simple interest in the Fairmont Hamilton Princess for your acquisition consideration.

“Ownership is offering this trophy Property subject to a long-term management agreement with Fairmont Hotels & Resorts.”

Ms Chase told the Sun that she had received interest from 15 different parties since the hotel was advertised.

She added: “Of the 15 we would consider 10 as strong options.

“We believe there will be a horse race for this opportunity and we are expecting to get 30 different groups.

“The idea is for that equity partner to take a share of the ownership of the hotel.

“But if someone came in and made an attractive offer for the hotel and wanted to do the project we would obviously consider that.

“That would be great for Bermuda. We are conscious that other hotel developments have not moved forward on the island and we did not want to wait three to five years before we could go ahead with this exciting expansion.

“The hotel does not generate enough income to finance a major project like this so we have to cast the net wider.”