of the old Inverurie Hotel on Harbour Road.

One of three shareholders in the company, Mr. Conrad Engelhardt, said yesterday he expected the property to sell for "several million dollars''. It is understood that the company was offered $3 million for the property in a private deal.

The property includes a 34-room building, with beauty salon, swimming pool, tennis court and car parking facility.

Auctioneer Mr. Benjamin Rego Sr. said there had been a few inquiries about the property, adding that it would be ideal for a guest house or as an addition to an existing guest house. He said it was also possible to convert the building into condominiums although that would be subject to Planning approval.

An auction of the property was originally scheduled for February, but had to be postponed until boundary adjustments had been approved by the Planning Department.

Another shareholder in the Warwick Hotel Development Company, Mr. Kenneth DeFontes, together with Pink Beach managing director Mr. W.A. (Toppy) Cowen, had plans to operate $125-a-night self catering units in the old pool wing.

Mr. Cowen said yesterday he was no longer interested.

The former Inverurie Hotel, which was managed by Mr. Engelhardt, has been split into three separate sections. The water side section is now operating as the Palm Reef Hotel, and managed by Ms Bridget Marshall, while the upper section along Cobbs Hill has been turned into condominiums, called Harbour House.

Rooms in the pool wing have been leased by the Palm Reef Hotel.

Mr. Conrad Engelhardt.