The Harmony Club hotel has decided to build 20 one-bedroomed units amid reports of a drop in tourist arrivals. It hopes to start construction in the autumn.

The South Shore, Paget hotel received in principle approval from the Development Applications Board (DAB) at a meeting last Wednesday. Asked why the hotel would expand in the current tourist arrivals climate, Neville Mehra, chief executive officer of the hotel's parent company - Bermuda Resort Hotels - said this type of building reflected the current trend.

"Those units are going to be for sale and then leased back to the hotel," he said. Mr. Mehra also disclosed that the company planned to offer the units at a midrange price. "We expect to offer them in the region of between $450,000 and $500,000," he said. "We are not aiming for the high end. Our units at Surf Side are more at the upper end. We will leave the really high end to Tucker's Town and Tucker's Point."

Asked if he envisaged locals buying them to live in he said: "We really haven't determined what the demand would be right now. The permission we have from tourism right now is for them to be leased back to us." The 20 units will be put upon the Middle Road side of the hotel property close to the tennis courts. This area now holds a greenhouse and the residence of General Manager William (Billy) Griffiths. Mr. Mehra said those buildings would be demolished. The new units will also have a bathroom, kitchen and living room.