A major Bermuda hotel is to undergo a $20 million revamp as its owners plan to turn it into a world-class resort.

Elbow Beach Hotel and Development Company Ltd. is to plough the cash into the hotel over the next three years.

At the same time, Wyndham Hotels and Resorts, which had the management contract for the last three years, is to be replaced by The Rafael Group which will take over the day-to-day running of the hotel.

Four years ago, the hotel underwent a $20 million refurbishment, but earlier this year Miami-based consultants, Parnell Kerr Foster, were brought in to map out Elbow's future.

The latest investment is an outcome of the PKF survey, according to Mr. John Jefferis, Elbow Beach managing director.

"It is a very positive time. We are excited about making the hotel a better product with the combination of physical enhancement and the addition of the Rafael Group,'' he added.

Although planning permission has not yet been sought, the new plans include revamping the hotel's infrastructure such as the air conditioning and refurbishing 193 garden rooms which will be fitted with custom-made tile and marble bathrooms. Another 42 suites will also be added, the grounds will be upgraded, visual improvements carried out, especially around the beach area, and a spa may be built.

The Rafael Group will take over the management of the hotel on January 31, next year, and will be responsible for everything from serving food to ensuring customers get the best value for money. It will also expand marketing and look to attract more guests from Europe for the 300-bed hotel.

The Group was founded in 1986 and runs hotels across Europe and America, as well as the Far East and Australia.

"We look forward to working with the directors and staff at Elbow Beach to further improve the quality of accommodation and service,'' said owner, Mr.

Georg Rafael.

"We would also like to expand the current marketing efforts to target new guests, especially from Europe, to show them the magic of the Island and the splendour of the hotel.'' Mr. Jefferis added: "Rafael is a five-star group and we are hoping with the money we are going to spend and the affiliation with Rafael it will take the hotel to new heights.

"We have been very pleased with Wyndham and they have done an excellent job and we depart as the best of friends.'' Last night, a spokeswoman for Wyndham, said its contract expires on December 31 and that the group had enjoyed its association with Elbow Beach and the Island.

"We hope to possibly return with a presence on the Island in the near future, but that depends on how future plans and aspirations work out. We think we have done a good job and we are pleased to have been associated with such a good property.''