The former White Sands Hotel re-opens on July 14 - almost three months behind schedule but with the owners promising a new first class property.

Bermudian businessman Jeff Amaral bought the hotel from American James Dwyer in February after Bank of N.T. Butterfield could not keep up with loan repayments.

It opens its doors again on July 14 as the Grape Bay Beach Hotel following extensive refurbishment by the management group Bermuda Resort Hotels (BRH).

Bermudian Marcus Jones, the manager of another BRH property the Wharf Executive Hotel, has been appointed general manager of Grape Bay Beach.

And the Primavera Restaurant group will run the hotel's new upgraded poolside restaurant.

The hotel will now have a lounge overlooking the South Shore and the Sapori Restaurant will offer Bermudian dishes, pizzas, pasta, Thai and sushi dishes.

Bermuda Resort Hotels also operates the Harmony Club, Surfside Beach Club and the Wharf Executive hotel.

Mr. Amaral, who developed the Palmetto Gardens condominium complex in Flatts, said earlier this year he hoped the South Shore, Paget, hotel would be open on April 1.

BRH president Billy Griffith said yesterday: "We are very pleased to welcome this new hotel to the group.

"The opening was late because of renovations and construction going, as we made more renovations than we intended to make, but now we are ready to go."

Mr. Griffith said bookings were "very modest" but he hoped they would pick up when the hotel is properly marketed within the BRH group.

New Jersey-based Mr. Dwyer was indicted in the United States in May this year on charges he lied to bankers when he applied for a $16 million loan.

The Philadelphia Inquirer reported Mr. Dwyer is accused of diverting a "significant amount" of the $16 million loan from National Penn Bank towards other real estate developments not mentioned to the bank.