The proposed sale of the Lantana resort is a step closer to reality after the American developers who want to transform the Sandys property into a luxury health retreat were given planning permission in principle.

Burkett and Associates want to create a world class spa and hotel with a sports and health retreat, and to replace some of the cottages with luxury timeshare condominiums.

The deal to buy the resort from owner John Young was conditional on the plans receiving approval in principle, and on April 10 the Development Applications Board gave Burkett and Associates the go-ahead. The developers must now submit detailed plans to the DAB.

The developers, who are based in West Chester, Pennsylvania, want to create 40 spa suites with 54 bedrooms which will be available to guests all year round. There will be 28 condominiums which will be leased back for a minimum of six months and six private cottages with ten bedrooms.

As part of a three year development at the resort, to be called the Sanctuary Spa and Resort at Lantana, the company also intends to submit further plans for a year-round indoor tennis court, a golf academy and equestrian centre, and a 35 yacht marina with waterfront homes. In the first phase of the plan, six existing units will be upgraded and the spa will be built in an existing building.

In the planning application submitted last December, the company said: "Our intention is to be a leader who will make a difference by developing a world-class all-seasons destination spa and resort in Bermuda.

"Our mission is to enhance the quality of life for our guests by creating a resort to which people can get away, a sanctuary from the rat race, a quiet place to rejuvenate body, mind and spirit, a place to take one to the next level of wellness and well-being."

Tourism Minister David Allen said he was "excited" by the plans, which were a "positive step in enhancing and enriching Bermuda's tourism appeal".

"There is no Government money going into it and it is a privately owned property. Cabinet will only get involved if the owners of the property make an application under the Hotel Concessions Act 2000."