subsidiary of a new Marriott company once plans to split up the corporation are set in motion later this year.

The giant food service and lodging chain, Marriott Corporation, plans to divide into two companies in September.

Marriott director of corporate information Mr. Nick Hill said: "The proposed split will divide the real estate and hotels into one company and the management and service business into another.'' The new company, Marriott International will be set up to manage the lodging and service business -- the profitable arm of the business.

And the Marriott Corporation will be renamed the Host Marriott Corporation. It will own the rest of Marriott's operations -- hotels, including Castle Harbour, inns and retirement communities in four countries as well as catering facilities at airports and toll roads -- said to comprise most of the corporation's debt.

"The management of the hotel and golf course (at Castle Harbour) will be operated by Marriott International Services Ltd., a subsidiary of Marriott International Inc. The real estate at the Castle Harbour resort will transfer to HMCH Ltd, a subsidiary of Host Marriott Corporation,'' said Mr. Hill.

Appleby, Spurling and Kempe's nominee company Reid Finance has formally applied to incorporate HMCH Ltd. as an exempted company with limited liability.

It will be a direct subsidiary of the Host Marriott Corporation and hold the interest in the Castle Harbour resort currently held by Essex House Condominium Corporation.

According to a statement released by Marriott, "Delaware Corporation, Essex House Condominium Corporation is permitted to own the leasehold interest in the Castle Harbour Resort pursuant to a special act of the Bermudian legislature, which was granted approximately the time Marriott first came to Bermuda.'' The landlord for the Castle Harbour hotel, dormitory and beach and approximately 20 acres of land is Bermuda Properties.

"We understand that the underlying fee interest is currently owned by Bermuda Properties Limited,'' stated a release supplied by Marriott.

Castle Harbour general manager Mr. Roger Borsink, Marriott director of corporate information Mr. Nick Hill and Bermuda Properties general manager Mr.

Peter Parker were all adamant that the proposed split would have no effect on customers or employees at Castle Harbour.

"Customers and employees will not see any difference,'' said Mr. Hill. The split would have a "transparent effect'', said Mr. Borsink.

Castle Harbour is described by Marriott as a "good sized'', full-service hotel with 405 guest rooms and 21 suites and parlours.

No information on the performance of the hotel in terms of profit and occupancy levels has been released.

Shareholders last month agreed to split the Bethesda, Maryland-based Marriott Corporation. They will receive a share of the new company Marriott International for every common share they hold in Marriott Corporation. The dividend distribution will go ahead in September this year once certain financing conditions are met.