I've been looking for reasonably priced accomodations in Bermuda as well - without any luck. For some reason, it seems that American hotel chains never set up shop in Bermuda, and those that do, generally don't last long. Fairmont (Canadian) has two hotels there, but rates are very steep, and the only points option seems to be converting an obscene number of Amex rewards points. As md mentioned above, you also need to keep in mind that Bermuda is only warm in the summer, so that makes the summer their peak season, and generally more pricey than the rest of the year. I signed up for Fairmont's special offers (President's Club?) and they send me emails all the time with special rates, but never anything discounted for Bermuda in the summer.