the former Club Med site in St. George's.

Tourism Minister David Dodwell told The Royal Gazette yesterday that Government had reached an agreement with the Atlanta-based Camberley Hotel Company.

"We are undertaking an option to lease period. That is what we are in the process of finalising right now. I expect that this will be signed by the middle of this week.

"This gives both parties a reasonable period of time to undergo the due diligence process. If all goes well during this period then we sit down and draw a final long term lease up...but it is not a done deal yet.'' Government will check out Camberley's credit and operational history plus its proposals for Bermuda while the hotel company examines the site's physical plant and Bermuda Tourism.

Mr. Dodwell said: "We are extremely excited about it. If it comes off I think Bermuda and the people of St. George's will be extremely pleased.

"Camberley Hotel Company presented an array of concepts that fit perfectly with Bermuda and St. George's needs.'' The other company vying to take over the site was based in Malaysia and "was further away from the traditional style of hotel we thought Bermuda needed'', said Mr. Dodwell, who did not name the firm.

"Camberley is a very qualified company with very qualified people. It is a small company which operates about eight hotels that it also owns parts of.

"Because it is a small company, it has a very individual focus.'' Camberley specialises in upscale hotel management and turning around under performing hotels. One of its clients is New York City's famed Algonquin Hotel. It also has three other hotels under development.

"It takes hotels that are financially challenged and moves them into the black,'' continued Mr. Dodwell.

It does this though renovating the facility, as it did with The Algonquin, and through market re-positioning, he said.

"It takes a hotel which is not working in one style and revamps it.'' Mr. Dodwell said Camberley planned to blend the East End hotel into its surroundings including the forts and historic St. George's.

"It is going to capture the spirit of this area by renovating the exterior and the interior of the hotel. It will create a feeling that this is not just another resort hotel.

"It is prepared to invest millions of dollars into the project as it tries to capitalise on the historical aspect of the surrounding area.'' The new hotel would likely have a smaller number of rooms than the Club Med operation as Camberley intended to add a number of larger suites.

And it will work to fill these rooms using a broad marketing approach. Both business and family facilities will be available on the site.

"I think it is appropriate that they are not focusing on just one market,'' said Mr. Dodwell.

He added that Camberley also intended to implement a very strong training programme and was talking about establishing strong links with the Department of Hotel Technology at the Bermuda College.

Club Med It was also used to working in a union environment, he noted.

Three Government departments are involved in the process of filling the abandoned hotel.

The Department of Tourism is leading the way at this stage which involves bringing the hotel component to the table.

The Ministry of Finance is also involved with the leasing process and the Ministry of Works and Engineering -- who are the landlords for the site -- will take over once physical work begins at the site upon the signing of a lease.

"The three Ministries are extremely impressed with the company's focus,'' said Mr. Dodwell. "They have certainly done their homework.

"Camberley also seems to have a very strong community spirit. They are not looking to privatise the beach there, which suggests that they are a community minded company.''