The company which owns the Harmony Club and Surfside Beach Club announced yesterday that it has bought the Wharf executive suites hotel in Paget.

The 28-suite hotel on the site of the former Palm Reef Hotel at Darrell's Wharf has been bought by Nam International Bermuda Ltd. and is scheduled to open next January.

The hotel adjoins a complex of 16 luxury condominiums, and guests will be able to share an indoor pool and gym.

Harmony Club president William (Billy) Griffith said the "boutique'' hotel, which has been bought from The Wharf Ltd. for an undisclosed sum, will cater for business travellers.

He said suites, which have Internet and business facilities and kitchens, will be available on a weekly, monthly or yearly basis.

Most of the Palm Reef Hotel, which closed down in 1997, has been knocked down, but its newest wing has been developed for this project.

Mr. Griffith said yesterday: "I think tourism is still in a quite difficult and challenging position, but I also have a significant amount of confidence that we can create a good solid product and diverse products with the Harmony Club and Surfside, and have them properly marketed and be successful.

"We also do believe that with a consolidated effort involving the public and private sectors, we will be able to get a turnaround in the business in the near future.''

The adjacent condominiums, which have between two and four bedrooms and range from $850,000 to $2 million, are expected to open towards the end of this year, more than a year behind schedule.

Tennis star Pat Rafter is among those who have bought the condos, and three are still available, said Martin Pollard, of The Wharf Ltd.