Former Ritz Carlton president Horst Schulze flew into Bermuda yesterday to unveil his plans for a new ultra-luxury hotel on the South Shore.

Ten years after his dream of opening a Ritz Carlton at the site next to Warwick gas station fell through when Japanese backers pulled out, Mr. Schulze was in buoyant mood about the new project.

He has set up his own new company with former Ritz Carlton executives, the West Paces Hotel Group, and has financing lined up for the new 100 room $80 million hotel called the Cliffs Resort and Spa.

The developers said yesterday that a Cabinet committee had approved a special development order for the site although they still have to go through the formal planning process.

The entire development, which also includes 35 homes selling for $1.2 million to $3 million, will cost $142 million.

Mr. Schulze has teamed up with Bermudian entrepreneur Ramadhin (Rammy) Smith and his partner David Johanson.

Subject to planning approval, the consortium plan to break ground this autumn, offer the first homes in spring 2006, and open the hotel in spring 2007.

Mr. Schulze said yesterday he wanted to run "the best hotel company in the world that doesn't compromise" on quality or service.

He said the company - which he said was also looking at developing other hotels in Atlanta, New York, Beverly Hills, Chicago and London - wanted to go after the top five percent of the travelling market with a small full-scale property that had the infrastructure and service of a large hotel.

"This will be very unique. The rooms are larger and there will be a different ambience. With a spa and restaurants and full service you normally need a much larger hotel to support.

"It is not a boutique hotel, which is a small hotel with limited services It will be a small hotel with the services and infrastructure of a larger hotel."

Financing will be provided by Redwood Capital of California. Mr. Johanson said the financing was "as secure as it can be" until all permissions are granted and said the loan should be in place in three to four months' time.

Mr. Smith said: "Today marks a new era in Bermuda and everyone quest to rejuvenate and breathe new life into one of Bermuda's most vital industries - tourism."

But local residents have formally objected to the plans to move the Warwick gas station east and have it and service buildings for the hotel close to existing homes.

Lawyer David Astwood, who is acting for his father and more than a dozen nearby residents, said yesterday: "The neighbours are not objecting to the development.

"That is a good thing for Bermuda, but to have problems with these unpleasant parts pressed right up to the housing when there is so much land there to be used seems unnecessary.

"It is usual in a situation like this when there are so many objections to have a public hearing, like they did when Ritz Carlton (planned a hotel)."

Aideen Ratteray-Pryse, a planning consultant for the hotel, said the developers were planning to have meetings with the residents about their objections.