Surf Side Beach Club last night opened three new luxury three bedroom apartments, which are part of a $5 million facelift at the Warwick resort.

Owner Naval Mehra also revealed he is hoping for final planning approval for an additional identical three storey development, which will take the resort to 49 units.

The three bedroom seafront units, which cover an entire floor, include sitting room, full kitchen and laundry facilities, are available from April 13 at $850 a night. Alternatively, a one bedroom unit on the floor can be let separately for $350 a night.

Mr. Mehra's company, Bermuda Resort Hotels - which also owns the Harmony Club and new Wharf executive suite hotel in Paget that is due to open next month - has spent a total of $5 building the new units and upgrading ten executive suites.

At the opening last night, he paid tribute to Tourism Minister David Allen's Hotel Concessions Act for making the new projects possible.

"The Minister of Tourism came up with the brilliant idea of the Concessions Act and we did a lot of work with his department to make this happen," he said. "The Government has encouraged people to invest in Bermuda, and this product is the result of the Hotel Concessions Act. My sincere thanks to the Government and Ministry of Tourism for helping us achieve this dream and this goal.

"We're now bringing Surf Side to the standard we always wanted the property. When we took over, it was 30 years old, but it is a great jewel and we are polishing it and bringing it back to life."

Mr. Mehra denied he was involved in moves to buy White Sands in Paget. Mr. Allen, who was at the opening, said the new units at Surf Side were one of the "first fruits" of the Concessions Act, which gives tax breaks to hotel owners to upgrade their property and to rebuild.

`I am very happy to say this is an early product of the Hotel Concession Act and I want to congratulate Naval for his faith in the future of Bermuda by investing in Bermuda's future," said Mr. Allen.

"This demonstrates what we want to accomplish, not just by reinventing the tourism industry, but also the physical structure and the service."