Rosewood Hotels and Resorts, the luxury group slated to manage the Tucker's Point Club, has pulled out of its contract, the Club announced yesterday.

But Ed Trippe, the President of Bermuda Properties which is developing the site, said financing was still in place for the hotel.

The Greenbrier resort in White Sulphur Springs, West Virginia, which topped Conde Naste Traveler's `75 Top Golf Resorts 2002,' will train staff for the new hotel.

The hotel will be independently managed, but Greenbrier will run the spa.

Mr. Trippe said Dallas-based Rosewood pulled out because the 61 bedroom hotel - 20 less than originally planned in phase one - was too small, and also because it was focussing on its American operations after the September 11 terrorist attacks.

But he said the "bones of the financing" for the project were in place.

Argus Insurance Company, which has given two loans, and Bank of Bermuda, which has provided the other, back the hotel and have pledged to continuing supporting it, he said.

Under the financing package, sales of houses on the site and golf club memberships will help finance the building of the hotel, and sales of properties are well ahead of projection, said Mr. Trippe.

And loans from the financial companies kick in as sales of the multi-million dollar houses and time share units increase, providing reassurance to the lenders that the project will be completed.

So far, 17 of the 26 houses have been sold or deposits taken, which is well ahead of schedule, said Mr. Trippe.

"We've got hurdles to cross and a lot more real estate to sell, but the bones of the financing are there," he said.

"We know what we are trying to do. The Bank of Bermuda has been steadfast in its support from the beginning and they have given us assurances that they share the vision and will see us through.

"The bank wanted to know if we had enough money to complete (the houses) and then if we had enough revenue once completed to pay back.

"In both cases, the revenue from the real estate and the bonds from the golf course, the bank is seeing where the revenue is coming from to complete the golf club and beach club component."