Canadian Pacific is set to "back Bermuda tourism'' with a massive transformation of their Southampton Princess resort.

A five-year programme could see between $40 and $50 million being spent on revamping the site -- adding many new features to set the Island's largest hotel amongst the top resort properties in North America.

At the heart of the project is a huge spa complex, exclusive "club'' floor, rejuvenated grounds, pool and possibly a larger beach at the resort's Whaler Inn.

The plans will coincide with a substantial renovation scheme at the Canadian Pacific sister hotel, the Hamilton Princess -- bringing both places in line with the company's best properties.

And the work on the physical plant coincides with investment being made with hotel staff -- to ensure service equals the new facilities.

General manager Norm Mastalir said the plan would make sure the 600-room hotel was kept in the cream of resort properties, in particular for group and convention guests.

"It is very exciting,'' he said. "I believe we are at the beginning of something that is going to be very good.

"The Southampton Princess has been very well maintained over the years, but other resorts have been adding new amenities. The work we have to do is about adding those amenities that people expect at a first-class resort today.

"The hotel has enjoyed a position in the top circles of hotels in North America for groups. We want to make sure we can stand in a good position, clearly we won't be if we do not get busy and add some of these things.'' Leading the revamp will be a $3.6 million transformation of the sixth floor into "Entree gold'' -- CP's exclusive club which brings five-star service and facilities in a four-star hotel to demanding guests.

Only found in a handful of CP's premier hotels, it creates a "hotel within a hotel'', featuring private reception, business amenities, catering and a dedicated staff providing 24-hour service.

"That is really designed for the upper end leisure traveller, who wants to stay in a hotel but doesn't want to get caught up with groups and all that kind of thing,'' Mr. Mastalir said.

"It was originally conceived in city centre hotels but it is spreading to resorts because there is a need for it.'' A substantial addition to the site will be a 22,000-square-foot spa complex, which could begin to take shape next year.

As well as a gym, there will be 18 treatment rooms, solariums, aquatic centre with pools offering different relaxation methods.

The lobby and public areas are also to be brought up to date, along with a new pool area -- providing facilities for youngsters, with dedicated clubs to take care of young and old children.

"We also have major plans for restoring all of the grounds,'' Mr. Mastalir said.

Down at the resort's beach and watersports centre, improvements will increase its capacity.

CP Hotels plan Island upgrade "The beach isn't big enough,'' he noted. "We are looking to see if it can be enlarged to include more sunbathing areas.'' CP may also look at siting cabanas -- complete with showers and minibars -- at the beach to add to the upscale feel.

The project could see an initial $21 million being spent, with the cost possibly rising to $50 million after five years.

Although the scheme still has to be approved by Canadian Pacific directors, Mr. Mastalir said the company was predisposed to investing in their properties.

And the company is also moving ahead with plans to ensure its employees are prepared for the challenges ahead.

"We have our own big training programme called Service Plus 2000,'' he said.

"We are making good progress with the unions and labour, we have a long way to go with service. The challenge is to work together.'' The Hamilton Princess has its own renovation plans in the pipeline, facing a different challenge in updating an old hotel from top to bottom.

Canadian Pacific purchased the two Princess hotels in a $540 million deal, which included another five properties worldwide, last August. The refurbishment plans come after months of assessments by CP officials on what was required to take their hotels into the new Millennium.

The company has its traditional base in Canada but also has hotels in the United States.