Plans for the re-birth of the Castle Harbour hotel have reached a crucial stage which could determine the shape the new development takes.

Work has already started on the golf course and negotiations are taking place with construction companies to hammer out the final cost of the project.

Regent International Hotels are understood to have signalled their intention to come on board as managers of the resort -- subject to agreements that the renovated property fits their profile.

And investors are also believed to be ready to give the green light when the final financial requirements for the rebuilding are known.

A Spring start date for construction work to begin is feasible, but no contracts have yet been signed.

Mark Orchard, consultant for Castle Harbour operators Bermuda Properties Limited, said they were working expeditiously to finalise due diligence on the plans.

Once the go-ahead is given, the golf course, clubhouse and hotel will be the first priority.

Discussions have taken place with contractors and final figures could be in by the end of January. All being well, contracts could be signed by March, clearing the way for work to start soon after.

Presently a new hole is being added to the golf course but activity on the site is expected to increase rapidly in the New Year.

Regent International Hotels have not yet gone public with their commitment to the project, but Tourism Minister David Allen is confident they will be on-board.

Regent International Hotels have properties in Asia and North America. They are known for luxury and service, and their properties regularly feature in travel awards for excellence.

And Government Senator Calvin Smith recently told the Senate that the Bermuda Industrial Union had been holding talks with Regent over future staff contracts.

The 400-room Marriott Castle Harbour closed at the end of November. Its replacement is expected to have fewer rooms but with the accent on upscale accommodation.

The developers have warned in the past, that as with any tourism-related project, investors can be wary up until the final signing of the agreement.

An overseas investment group has signalled an interest in the defunct Club Med property in St. George's.

A contingent of developers from the US have visited the site and have also held talks with the Bermuda Industrial Union.

It is understood, though in the very early stages, the group are interested in upgrading the facility and running it as a hotel.

BIU president Derrick Burgess said he had talks with the group recently, adding that "they seemed quite eager to come to Bermuda''.

The preliminary talks were in connection with any staff contracts, he said.

Club Med is seen as a long-term project by the Government, who is keen to see another high-end operator come to the Island.

There has been little development since a potential deal with Atlanta-based Camberley Hotel Company fell through in May.

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