revealed yesterday.

The Longtail Cliffs, on South Road in Warwick, will cease operations on March 5.

"After three years of suffering losses it is with regret that we have decided to take this step,'' said Longtail Cliffs' agent Barry Capuano.

Yesterday's announcement comes on the heels of another hotel closure, The Palm Reef which shut its doors in November.

"The owners of the Longtail Cliffs have looked at many different ways to improve the financial picture and have come to the conclusion that with the changing tourism market, today's traveller has come to expect room service and in-house dining along with many other amenities that larger hotels provide,'' Mr. Capuano explained.

Longtail Cliffs features large two-bedroom units with kitchens, bathrooms, living and dining rooms. The accommodation has no restaurant, exercise room or bar.

He said that the owners had made every effort to sell Longtail Cliffs as a going concern, but were unsuccessful.

"The only realistic offers on the property, to date, contemplates the conversion of the site from hotel zoning to residential zoning.'' Mr. Capauno said travel agents and the Department of Tourism had been notified of the move so they could stop marketing the property.

"The few bookings we have will be sent to other hotels,'' he added.