Bookings at Bermuda hotels were mixed in the first quarter of this year as properties struggled to get back on track after September 11.

The second quarter is showing signs of recovery in some hotels, but many managers say it will be difficult to predict with any confidence an increase in visitors.

The Compliments of Bermuda programme - where visitors have been given cheaper room rates in the off season and a voucher to spend on Island activities - has been voted a winner for bringing in more guests, but hotels have seen revenue fall because they have had to discount heavily.

Hoteliers say it is too early to gauge the effect of the summer version of the promotion - where guests booking more that five nights through a wholesaler get a free flight for a companion - because it has just hit the market.

The Fairmont Southampton Princess, the Island's biggest hotel, enjoyed an excellent first quarter after landing three big group bookings which had been cancelled in the Middle East because of continuing tension.

The hotel was able to pick up the Audi, Electrolux, and Damovo conventions, and it has also seen more business meetings that were postponed after September 11 now being held.

Occupancy rates have been significantly up in the first quarter, but part of that reflects the fact that the hotel had so many rooms out of service last year due to a large scale renovation.

General manager Normal Mastalir said yesterday: "Both quarters have been very strong, but that is due to the fact that we are not under renovation like we were last year.

"We've had a great first half to the year which has been very encouraging, but the second half of the year is very unsure.

"We are considerably behind last year in booking pace for the second half of the year and we are not sure what is causing that. It could be that everyone is making decisions much more short-term, but we are significantly behind in the booking pace.

"The winter Compliments of Bermuda was very effective and we saw a lot of activity from that, but the summer has just hit the market and its too early to say."

Paul Tormey, the director of operations at the Fairmont Hamilton Princess, said: "We are flat compared to last year and in the second quarter, the first couple of weeks are soft.

"We've had some reasonably good group business in April. but in Hamilton, everything is very, very last minute and we cannot predict past 30 days.

"We remain cautiously optimistic, although the occupancy was at the sacrifice of rate. We did some good occupancy rates and we kept people working, but it was at the sacrifice of rate."

Dennis Tucker, president of Sonesta Beach Resort, said: "The first quarter was on par with last year, but we've experienced a reduction in average rates because of the offerings we've had to make to compete with other destinations, so while occupancy for the quarter was on target, our income was slightly behind.

"Our projection is that we are not going to do any better this year than last. It's as a result of what happened last year in the US economy, September 11, and the competition from other destinations makes it very, very difficult to compete on price.

"As a destination, we had to have an Island-wide promotion in the marketplace. As a destination, Compliments of Bermuda was very well received to the extent that we've continued into the on-season because we really must have competitive offerings in the marketplace."

Michael Winfield, the president of Cambridge Beaches, said the first quarter this year was around 30 percent. The hotel was closed at that time last year, but this figure is still down on the same period for 2000.

"It has been disappointing. Having said that, we were predicting the recovery would begin in the second quarter of this year," he said.

"We're behind in two out of the three months of April, May and June. We have 12 new units, which slightly skewers things, but without a question of a doubt, business is not as strong as it had been.

"We are not out of the woods yet. Reservations are now coming in which has given us confidence, but we need some good, strong reservation activity. We have a long way to go, but there are some indications that it's beginning to turn."

The Reefs was down a few percentage points for the first quarter, but spring and summer are looking very good, said general manager Neal Stephens.

"The second quarter is looking very good and we are already projecting low 90s for occupancy for May and June, so we're right on track. July is still in the mid-70s in terms of bookings, but that's normal for this time of year as July and August tend do fill up closer to the time," he said.