In addition to the former Lantana property Moongate Resorts Ltd. is also a hotel development at Munro Beach in Southampton.

Boston based investment company Crossharbour Capital owns the property.

The interest in developing a property here came from one of the directors, who has spent the last 20 years sailing in the Newport to Bermuda Race.

The five acre property located in Whitney's Bay currently has nine buildings, but Moongate resorts is currently working with architects to design a 14 unit property, which will have 26 two-bedroom hotel suites.

The development will also include a pool, restaurant, a beach and sunbathing decks.

"It is one of the best parcels of land in Bermuda," Kevin Petty of Moongate Resorts said yesterday. "It is so beautiful that we have to be very careful with how we develop it. It has 270 degrees of water views and a beach that you can wade out in for 200 meters."

Mr. Petty was approached two years ago to get involved in the project and said yesterday it is approximately six months behind the company's other new development Lantana. He projected that it could be open as soon as 2014.

"Demolishing and building a new resort, and then outfitting it and landscaping it, the process takes a long time," he said. Mr. Petty said he is confident in Bermuda's tourism future despite poor air arrivals and weak occupancy in hotels across the Island including the one he runs at Newstead Belmont Hills.

"Bermuda will come back," he said. "Some people may say we are crazy to start this right now. But I think Bermuda was really starting to see a turn around with developments, Brickman, Lawrence Doyle, and Crossharbour Capital. These are all the type of people Bermuda needs and wants."

"The Four Seasons stamp of approval [on the Coral Beach Horizons redevelopment] and fact that Brickman Associates is involved in that project is huge for the Island. That type of name recognition that the advertising arm of Four Seasons can bring is big."

And he said properties such as the newly finished Reefs Club and Tuckers Point were the type of product consumers wanted, adding that he believes 2010 will see a stabilising of arrivals and hotel bookings and 2011 is already seeing higher bookings.

Despite poor bookings in Newstead over the last year Mr. Petty said he was optimistic about Bermuda's future, saying "Newstead is proof that fractionals work" because the property has not had to lay off staff for the winter.Late last night, Premier Ewart Brown responded to the news: "This confirms my belief that the turnaround in Tourism is not far off. Developers have confidence in Bermuda and that confidence is justified."