A popular Hamilton hotel may have to shut some of its rooms because of a neighbouring construction site.

And this may prompt Horizon's Limited general manager George Wardman to seek compensation for the business he is losing at Waterloo House which he claims also affects Bermuda as a whole.

Waterloo House has been besieged by the noise and dust from the work being carried out next door on Pitts Bay Road which starts at 7 a.m. each day, he explained.

The site is the location of a $60 million project aimed at revitalising the Pitts Bay waterfront through the partnership of Pearman Watlington & Co.

subsidiary Waterloo Properties, Princess Hotels and Centre Reinsurance Holdings Ltd.

While he recognised that the finished product would be a "great improvement'', Mr. Wardman said: "It certainly has caused trouble. A number of guests have checked out because of the noise, particularly on the west side of the property.'' Mr. Wardman noted that these losses could not be underestimated.

Some of the guests had been transferred to other properties but "in other cases they simply left.

"The people who were staying with us were very unhappy. They have taken disgruntled, angry feelings home with them. They will not be back.'' Mr. Wardman said he was now considering closing down the affected side of the hotel which would lead to a loss of six rooms from a total of 32.

He pointed out that this was a significant loss when taken in the context of Bermuda's present tourism position.

But he said: "We do not want to subject our guests to that kind of inconvenience.'' Mr. Wardman said before he made the decision to trim down operations, he would approach the site's developers first and "look for a successful resolution regarding compensation.'' While he was unable to "seek for damages'' under Bermuda law, the hotel was already keeping track of its losses which might be rectified by some compensatory measure.

"Perhaps they could use the rooms we close as offices,'' he suggested. Mr.

Wardman noted that Waterloo House enjoyed a good winter season due to its commercial traffic.

BUSINESS BUC