Bermuda College's Stonington Hotel has been making losses for ten years and needs massive investment to bring it back on target, chairman Jan Spiering claimed yesterday.

He told the Rotary Club of Hamilton that the college had been unable to pursue projects of its own because it had to put cash into the running of the hotel, and said it was time that action was taken to stop the downward spiral.

But he said the task was not an easy one as the hotel not only had to operate as a business, but was also a training centre for students entering the tourism industry.

And he said there was a constant battle between the two, leading the board to contemplate whether its aims needed to be revised.

He added: "We need to look at everything, including the potential of outsourcing the management of the hotel.

"The Stonington Hotel has had losses for the last ten years."

He said in 2000 they amounted to $314,000 and this year so far they have recorded $169,000.

Rotarian Toppy Cowen said he had heard that the rooms at the hotel were in substandard condition, and said he was surprised that had been allowed to happen, especially as Bermuda promoted itself as being a destination of first class accommodation.

And Mr. Cowen asked: "Have you spent any money in the rooms?"

Mr. Spiering admitted there was still a way to go and said more investment was needed.

"We have spent some money on capital expenditure at Stonington, but it has been a problem and one that I'm only just beginning to understand," he said.

"It's not only a hotel, but a combination of a hotel and a training facility. It's time for us to do something about it but capital expenditure is needed at the hotel. It is something that we are working on."

The chairman said the Government-run hotel needed both the skill and dedication of excellent staff and business-minded management, as well as first class training for students - and, of course, funding.