ERROR RG P4 26.4.2000 A story in Monday's newspaper incorrectly stated that the Elbow Beach Hotel had been sold. The ownership of the property remains unchanged as a result of the merger between the Mandarin Oriental Group and Rafael Group. The management of the hotel will now be jointly assumed by Mandarin Oriental and Rafael Group under the banner of Mandarin Oriental Limited. This development will not alter the hotel management agreement. The partnership between The Mandarin Oriental Limited and the Rafael Group is awaiting shareholder approval.

A Bermuda-based international company is to take over the Island's Elbow Beach Hotel and five other hotels run by current owners Rafael Group in a multi-million dollar buyout.

Hotel chain Mandarin Oriental International -- part of the massive Jardine Matheson organisation -- is expected to assume control of the Rafael Group after approval by shareholders.

The $142 million-plus deal will be paid in cash from Mandarin Oriental's reserves -- and the group will also take responsibility for Rafael's current debt of $15 million.

Elbow Beach spokeswoman Kendaree Burgess Fairn said the hotel did not expect major changes under the new management team.

And she added: "We are looking forward very much to working with the new managers of the hotel.'' Hong Kong-based Mandarin Oriental International chief executive Edouard Ettedgui said: "We're delighted to welcome these award-winning hotels to our group.

"They will provide an excellent match for our existing properties in terms of luxury standards, guest service and geographic presence.

"The acquisition will create greater visibility for the Mandarin Oriental brand in the United States and Europe.

"In addition, it will have a positive impact on our existing properties and provide attractive financial returns for our group.'' But he added that international hotelier Georg Rafael, who founded the Rafael chain in 1986, would remain with the group to "assist with the transition and to progress development opportunities.'' The whopping buyout deal comes just over four years after the Monaco-based Elbow Beach owner, a multi-billionaire member of the Saudi Arabia Royal family, appointed Rafael to run the hotel.

The Rafael Group replaced Wyndam Hotels and Resorts, which had managed the South Shore property for three years.

Mr. Rafael said yesterday: "I firmly believe that Mandarin Oriental is the right company for us and our future.

"Both our groups are consistently recognised as having some of the world's best hotels, and this cultural fit is of great importance to all our guests and colleagues.'' The move means that Mandarin Oriental -- heavily represented in the Far East -- will own or manage nine hotels in Asia, seven in North America and four in Europe.

Mandarin Oriental currently operates deluxe and first class hotels in the Far East, London and San Francisco.

Further luxury hotel developments are planned for Miami, Florida, and New York.