Bermuda: COVID-19 causes Rosedon hotel to close its doors until 2021

Bermuda’s Rosedon Hotel will close its doors next month, with plans to reopen in 2021. The hotel issued a statement which said the COVID-19 pandemic resulted in a drastic reduction in tourists deciding to suspend operations, inevitable.

Rosedon is said to have incurred approximately half a million dollars in losses up to May. Management believes that the losses would be further compounded if they attempted to reopen before there is adequate demand.

“The world and Bermuda have struggled to understand the long-term implications of the COVID-19 pandemic fully. The statistics and projections most recently announced about limited airlift to Bermuda and the associated reduction in tourists visiting our island for the next nine months paint an incredibly bleak picture for all Bermudian hospitality businesses. Hotel operations typically run at a loss for the first few months of the year but can recoup most if not all of that loss through the high season between May and October. Regrettably, with best-case projections by the BTA (Bermuda Tourism Association) reflecting occupancy at less than 50% for the island through early 2021, we are forced to face the reality that returning to operations for the remainder of 2020 is not feasible.”

Rosedon employees have been laid off since March 18 and will now be made redundant. The hotel said the Bermuda government reacted swiftly to provide unemployment benefits, but noted that living on $500 a week in one of the world’s most expensive places is not sustainable.

“Requiring our staff to live on unemployment benefits alone for another four months would effectively force many into poverty, and this is a reality that is heartbreaking as we consider all team members to be part of our extended family.”

The hotel told all employees who have been laid off will be made redundant and will be paid as such.

The management of Rosedon further stated that coming to terms with the decision has been devastating. Still, in the face of this and many other uncertainties, the company remains resolute in its commitment to employees.