Developers are hoping to begin knocking down the Belmont Hotel in around two months and to start building the new property before the end of the year, The Royal Gazette has learned.

Work has already begun on upgrading the golf course, which closed down in January and is scheduled to re-open in March next year.

Developers Somers Management are still in negotiations with the Department of Tourism and the Department of Planning to iron out the final design for the site, which will include houses and a hotel with around 100 rooms.

Kevin Petty of Somers Management told The Royal Gazette yesterday he expected talks to continue for around three months before final plans are submitted to Planning and Tourism. He also said that it has still not been decided whether the hotel will be two storeys high or a cottage colony.

"The hotel is being stripped of asbestos and we have demolition permits for the hotel and the club house," he said.

"There should be another three months of talks with Planning and Tourism before we get a final understanding, then we will submit the proposals for approval.

"We are hoping demolition will begin in six to eight weeks and we can start building this year, but I can't see that happening before August."

American-based Richard Halsey, who has recently acquired Bermudian status, bought the 151 bedroom Warwick hotel, which closed in 1998, from Forte Hotels last year.

He plans to build a series of homes on the site which will be sold to help finance the hotel, in a funding arrangement similar to that used by Bermuda Properties at the Tucker's Point Club.

Mr. Petty said yesterday he was unable to give an exact date when the hotel will open as construction contracts have still to be negotiated and a series of permissions have still to be granted. But he said construction work could last around two years.