Former Elbow Beach managing director John Jefferis is to spend $10 million to try to transform Stonington Beach Hotel into a world class resort, it was revealed yesterday.

Government has given Mr. Jefferis, owner of the award-winning Coco Reef Resort in Tobago, a 50-year lease to operate and manage the Paget-based hotel.

Mr. Jefferis told The Royal Gazette last night he is planning to build five deluxe villa suites over the winter and will be applying to build a further 30, taking the number of beds to around 200.

The hotel, which overlooks Elbow Beach and is used to train Bermuda College hospitality students, will be rebranded the Coco Reef Resort, Bermuda.

The hotel will continue to support the College's hospitality division and students will continue to do practical work at the property.

"The hotel will undergo substantial renovation and expansion, including a dramatic new lobby, additional luxury villa suites, refurbishment of all bedrooms and public rooms, and a new bistro-type restaurant will be added, plus a beach restaurant," he said.

"We are excited by the acquisition of Stonington. It is a delightful property situated on Bermuda's most famous beach.

"Our intention is to invest significantly in the renovation and refurbishing to bring the property up to a world class standard.

"Bermuda tourism, under the new minister Renee Webb, is currently enjoying an upswing. Confidence in Bermuda and the government is the main reason for our investment.

"From talking to various wholesalers currently on the Island, the prognosis for the summer is extremely positive for Bermuda, which many attributed to the various new strategies executed by the Department of Tourism, such as the new advertising campaign and other promotional endeavours."

Mr. Jefferis, a Bermudian, beat a bid from Bermuda Resort Hotels, managed by former Bermuda Hotel Association president Billy Griffith, to run Stonington after the college decided it would be better to have the hotel operated and leased by a private company.

Mr. Jefferis's Coco Reef resort in Tobago was named Best Resort in the Caribbean at the World Travel awards last year, and has enjoyed occupancy rates in the high 80s for the past five months, he said.

Mr. Jefferis, a former Caribbean Hotel Association president, was named Caribbean Entrepreneur of the Year by Ernst and Young last year. His company also owns Tobago In-Flight Airline Caterers and Cafe Coco theme restaurants.

Bermuda College hospitality students will also be given the chance to train at the Coco Reef resort in Tobago as part of the deal.

Tourism Minister Renee Webb said yesterday: "I am very excited about this venture and Government is confident that the Coco Reef Resort Bermuda will soon follow in the footsteps of her sister property in Tobago.

"We anticipate a long and prosperous partnership with Coco Reef and together we return this beautiful South Shore property to a five star resort.

"Mr. Jefferis has agreed to invest significantly in the renovation and refurbishment to bring this property up to a world class standard.

"As we embark on the continual upgrade of our tourism product, we are working even harder than ever to appeal to travellers and return the Bermuda brand to its premier position in the world travel and tourism market."