A Bermuda hotel has started work on a multi-million dollar new development , expected to be complete by the 2009 tourist season.

The Reefs’ new project, a Private Residence Club (PRC) expected to cost “north of $50 million”, will be comprised of 19 two-and-three bedroom residences and will feature a spa on the patio of every unit.

Residents will also have access to an infinity pool, whirlpool, club lounge and state-of-the-art fitness centre.

The PRC will be located immediately west of The Reefs property and owner and Shadow Tourism Minister David Dodwell admits that he began looking at developing the area more than 25 years ago.

He didn’t obtain the land until 2004 but calls the endeavour a “dream come true”.

The units have been on sale for the past three weeks — $345,000 for a two-bedroom unit and $370,000 for three bedrooms - and have been selling well according to Mr. Dodwell, who said: “The response has been overwhelming and very positive.”

He believes the units will take the hotel to the “next level” and allow The Reefs to compete with top hotels in the world, not just others on the Island. He said: “The world is our next level, not just our hotels down the street.”

In addition to the PRC, the hotel will also be upgrading its spa from a two-room facility to one with seven luxury treatment rooms, create a larger kitchen with better ventilation and newer equipment and an ocean-edge dining room, extending to the cliff and overlooking the ocean.

Mr. Dodwell explained that the PRC’s have the same concept as Tuckers Point and will be fractionally owned, meaning there will be ten owners per unit. When a unit is purchased the owners get to select the dates they will be residing there, but also have the right to use the unit whenever it is free, allowing more flexibility than with timeshares.

Mr. Dodwell said: “We are extremely excited to break ground today. The Reefs is an international award-winning resort and widely recognised as one of the top hotels on the Island. Together with our project management team, Bermuda Project Managers Ltd., and our architectural team, Linberg & Simmons, we will now be able to provide the ultimate in luxury residential living and will upgrade our current hotel kitchen and spa facilities to further enhance our guests’ holiday experience.”

Mr. Dodwell expects the new Private Residence Club to uphold The Reefs’ standards and said: “It will be a high-class, high-end luxury development. It will be a five star development”.