A new chapter opened in the history of the Marriott Castle Harbour Hotel yesterday when demolition work finally began to make way for the new $50 million Tucker's Point Club Hotel.

Bermuda Properties, which is developing the resort, and Tourism Minister David Allen, said it was a day of mixed emotions as bulldozers began tearing down the landmark hotel, which first opened its doors in 1958.

Construction work on a new cottage style 61 bedroom hotel with spa is scheduled to begin by the end of 2003, and it is due to open in Spring, 2005. A further 20 rooms are planned shortly after and the hotel may finally have just over 100 rooms.

Just before the canopy from the entrance was lifted off and demolition began, Bermuda Properties President Ed Trippe said: "This is an historic day.

"It is a day of great nostalgia for those of us involved in this property for many, many years. It is a bitter-sweet day. This is a wonderful old Bermuda building that is part of our heritage, but is a new day."

Mr. Allen said: "I am confident this will become the jewel in the crown of Bermuda tourism. It is the largest hotel estate in Bermuda and there will never be another (this size) dedicated to a hotel and tourist accommodation in the future of Bermuda.

"So it was very important that we all got it right. It's been a long time coming."

Tucker's Point Club also announced yesterday that it was breaking ground on a new 20,000 square foot golf clubhouse, part of the overall $250 million development, which includes luxury housing, timeshare units, a golf course, and a beach and tennis club.