In 1900, the land was purchased by
Henry M. Flagler, responsible for the
Breakers Hotel in
South Florida. He built an enormous hotel on the site, the
Colonial Hotel, which opened in 1901. The Bahamian government gave a loan to the
Munson Line, which purchased the land and built a brand new seven-story hotel,
The New Colonial, on the site within six months. The hotel celebrated its grand opening on January 7, 1924. In 1932, the hotel was purchased by Sir
Harry Oakes. The local legend is that Oakes bought the hotel on a whim, after experiencing bad service there. Oakes renamed the hotel the
British Colonial Hotel. He was a powerful man and a friend of the
Duke of Windsor. He was later murdered in 1943 under mysterious circumstances (the mystery remains unresolved), which was called the "murder of the century". The hotel was bought by Florida-based Gill Hotels in 1960 and became part of
Sheraton Hotels in November 1962 as the
Sheraton British Colonial, the chain's fourth ever franchise. Sheraton operated the hotel until 1988, when it became part of
Best Western Hotels as the
British Colonial Beach Resort. The old hotel building was gradually closed up over the course of the 1990s, with rooms eventually operating in only a small portion of the complex. Finally, in 1997 it was purchased by RHK, who renovated it at a cost of over $90 million. They completely gutted and modernized the interiors, but retained its façade of towers, galleries, and molded reliefs. The hotel reopened in October 1999, managed by
Hilton Hotels, as the
British Colonial Hilton Nassau. It was renovated in June 2009 at a cost of US$15 million, The hotel was sold on October 24, 2014 to the China State Construction Engineering Corporation. From 2016-2019, the group constructed a $250 million complex, originally known as The Pointe, adjacent to the British Colonial, located on the hotel's former parking lot. The hotel and condominium towers of The Pointe have since been branded as Margaritaville Beach Resort Nassau. The hotel closed temporarily in early 2020, due to the
COVID-19 pandemic. It reopened on December 15, 2020, but closed again on February 15, 2022, due to continued low bookings during the ongoing pandemic from its clientele primarily of business and convention travelers. The hotel ceased to be associated with the Hilton brand as of that date. While closed, the hotel underwent extensive renovations. ==Facilities==