Island of Madeira, Portugal, off the coast of Morocco, has been purchased by Bermuda-based Sea Containers Ltd. for $30 million.

The 171-room property, first opened more than a century ago in 1891, has been purchased from the Blandy family, British residents of Madeira, who have operated it since 1937. Madeira is part of an extinct volcano, and rises up steep cliffs from the sea.

Reporting an operating profit of about $3 million in the last fiscal year, the hotel is set on ten acres with two world class golf courses, magnificent gardens, three swimming pools and tennis courts.

Sea Containers president James B. Sherwood was in Madeira on Monday for the handing over ceremony and said that the plan was to double the operating profit through capital investment in expansion, improved occupancy and increased tariffs.

He said, "Madeira is only a three hour flight from London, North Europe and Scandinavia and is the closest winter resort destination with guaranteed warm weather for people living in the cold North European climate. It is rather comparable to Florida from New York.

"In addition, Madeira contains the only truly interesting historic city in the region, Funchal, which was largely built in the 16th and 17th centuries and contains many buildings of exceptional architectural interest.'' The hotel was acquired through Sea Containers' Orient-Express Hotel group.

BUSINESS BUC