Work to rejuvenate the west coast hotel began last October, with the project set to progress over the next four winters.
However, the hotel will remain open throughout the summer months.
Jamie Nussbaumer, director of owners Nuttree Ltd, said the business was acutely aware that the hotel was beginning to look tired and needed to be brought up to date.
‘As the third generation involved in the family business, I am delighted to contribute to what has been a long love affair with this building ever since my grandparents purchased what was then just a pair of semi-detached houses back in the early 1960s,’ he said.
‘Mum and dad built on my grandparent’s legacy, completing the most recent major refurbishment of the hotel in the late 1980s.’
The Nussbaumer family sold their other two Guernsey establishments last year to fund the investment. The Doghouse was sold to a Guernsey investment company for nearly £2m. in April and St Saviour’s hotel The Farmhouse was sold to Randalls in November for an undisclosed amount.
Phase one will see a new 12-bedroom staff block built at the rear of the hotel along with a partial revamp of the seafront terrace dining area.
There will also be two brand new, fully accessible bedrooms, catering for disabled guests.
During the next winter, subject to further planning permissions, there will be a full kitchen restoration, a toilet block built internally, and a brand new 50-cover restaurant at the southern end of the property. Above the restaurant will be a bar and balcony with views over Cobo Bay.
Mr Nussbaumer said the works over the winter of 2028 into 2029 would be the most notable aspect of the project, with a third-floor extension being built in the roof space, to accommodate six new bedrooms.
The new look will be repeated at each level of the front of the building.
‘The extension into the roof space was considered to be a “no brainer”, albeit a substantial investment,’ said Mr Nussbaumer. ‘In the near future, the roof was going to need to be replaced through general wear and tear, so we thought it was the perfect opportunity to make the most out of that space.
‘The new restaurant will allow us to focus on a more year-round food offering, minimising our winter closure. The Sunset Bar will be an exciting addition, overlooking some of the best views the island has to offer. And the Balcony Gigs will have a new venue only a few yards from where they currently entertain thousands of people each summer.’
The final work in winter four will see the completion of staff accommodation with a revamp and extension of the staff block already situated on the border with the car park of the Rockmount.