A group of Washington DC businessmen announced earlier this week that they would be buying the hotel from its current owners.

One of the new investor group, Nev Mehra, has had management experience with the Waldorf Astoria and all of the group are frequent Bermuda visitors.

He said: "Our goal in acquiring Surf Side is to continue upgrading it and to expand the services offered.

"We will start the coming season with an expanded restaurant and within the next 12 months we expect to start construction of a major new guest wing.

The improvement plans at Surf Side include a new three-storey building, housing three luxury suites. The development is aimed at the top end of the market, a category that the hotel has high occupancy rates in.