Bermuda’s recession just starting
It was announced this week, to no great surprise that Bermudian Bank NT Butterfield has called in it’s loans to the Newstead Belmont Hills Golf Resort and Spa. The money owed to the bank, that is not doing too chipper itself, is thought to run into tens of millions of dollars.
Newstead went heavily down the fractional ownership route when it was rebuilt in 2008. It has struggled to get international business travellers to stay there because of it’s location opposite the harbour in Paget, although we have always encouraged our clients to stay there because the hotel is superbly positioned and allows visitors to get a different perspective of the island. However the emphasis on the rental units in my mind has always given the ‘resort’ a barren feeling, this despite it’s pretty popular restaurant which is owned separately.
Receivers this week took over the property which employs 100 staff and is completely Bermudian operated. It plans to continue until buyers are found. Sadly snow is more likely and it’s very sad and a real sign that the recession is still nowhere near it’s apex on the island.