One of Bermuda’s oldest guest houses is to close, the owners have revealed.

And Salt Kettle Guest House in Paget, run by Hazel Lowe and her family for nearly 45 years, is to become homes rather than a holiday spot.

A spokesman for the Lowe family said: “They have now determined the next exciting step for the property is its transformation to a small, tasteful residential complex.”

Five cottages, two two-bedroom apartments, a one-bedroom apartment and two studios will all be available for residential rental.

Bermuda Tourism Authority chairman David Dodwell said: “I have always admired Hazel’s commitment to maintaining a first-class tourist product on Island.

“She graciously greeted each guest as a member of the family and has made an indelible contribution to Bermuda’s tourism.

“I wish her and her family well on their new venture.”

It is understood that Ms Lowe, now 85 and who took over the Paget guest house in 1970 with husband Bobby, has decided to step back from running a busy business.

Bookings for the guest house will continue to be taken until January of next year, when the property will close for renovations to make it more suited for residential use.

It is expected the homes will be available for rent by the early summer of 2015.

The spokesman said: “After more than four decades serving the discreet visitor yearning for charming Bermuda hospitality in a small, personalised setting, the family-owned property will retain its appeal and traditional charm in a new design better suited to today’s needs.”

Ms Lowe was awarded Hotelier of the Year in 1999 and the guest house has won several other awards over the last 44 years.

The property claims a 90 percent guest return rate — with generations of the same families returning over the years.

The attractive waterfront property was also popular with Bermuda residents and Salt Kettle was a regular host for weddings and other special occasions.