potential investors in the Bermuda Financial Centre.

And NLP spokesman Mr. Graeme Outerbridge has taken Princess executives to task for opposing the BFCL planning application.

Mr. Outerbridge claimed last week that Princess officials, through "bad-mouthing'' the plans overseas, sought to undermine the plans for the building of a business hotel on the site of the old Bermudiana Hotel.

But the hotel has called the claim "groundless and unbridled speculation'' and through a spokesman said there was no desire to engage in a verbal joust with the NLP.

In a prepared statement from their public relations consultant, Mr. James Ziral, the hotel stated: "The Princess respects Mr. Outerbridge's concerns and opinions. However, his accusations in regard to the Bermuda Financial Centre are groundless.'' Mr. Outerbridge said: "They (the Princess group) were bad-mouthing the project to potential investors. We are aware that the influence was exerted not only locally, but internationally.

"Instead of using that energy against the BFCL, it should have been used constructively with their own physical plant and tourist product. It was just nasty, blocking the BFCL through planning for blocking's sake.

"One can make the argument, with the way that Hamilton Princess is at the moment, that maybe it would be in Princess' best interest to run one of their hotels well, rather than one so-so and the other in a mediocre fashion.'' Mr. Outerbridge said that Princess' behaviour to BFCL was "a bad thing'' when the entire community's interests are considered.

"They were just acting narrowly as a large corporation for their own interests and not for Bermuda's best interests. There's no way that with what they did they were doing anything to help Bermuda In particular, what Mr.

(Stephen) Barker (Princess Hotels regional vice president) was spearheading against the financial centre, legally, trying to block the planning application and also creating a negative atmosphere with potential hotel chain investors.

"I don't know any specifics about their actions overseas, but I do know that there was involvement and they put out a negative profile about the Bermuda Financial Centre.'' The Princess statement said: "Frankly, it sounds rather like Mr. Outerbridge has engaged in unbridled speculation as he admits that he has no knowledge of specifics.

"We do admit that in keeping with maintaining our image as a fine hotel property, we have already begun renovations to the Princess Club and continuing this winter, aside from normal room renovations and new furniture, upgrades will include such things as a voice mail message system, in-room mini bars and a second speaker phone at each desk.

"We would also add that because of our staff's commitment to excellence, both the Hamilton and Southampton Princess received The Gold Key Award in 1994 for excellence in meetings and conventions.

"Only 28 hotels outside the US received this award, granted by the Corporate and Associate Executives and Meeting Planners.'' Mr. Outerbridge was responding to a recent business article in The Royal Gazette in which Mr. Barker defended the Princess against criticisms that it did not make the grade as a quality businessmen's hotel.

The NLP spokesman said a lot of the criticisms of Princess were legitimate, and instead of Princess executives looking for outside scapegoats, they should spend their energy upgrading their property and making the Princess the best facility in Bermuda.

He said that the old wing of the hotel needs upgrading and facilities and restaurants "need a make-over''.

"If we are charging top dollar, we need resorts that are constantly upgraded,''he said. "Princess needs a major over-haul if they want to remain competitive. Rather than going around victimising potential competitors, do yourself a favour, compete.''