Bermuda's two Fairmont Princess hotels have got off to a flying start this year with group bookings looking likely to push first quarter occupancy rates above last year.

The Southampton Princess is sold out for several nights this month after landing two big convention groups from Europe.

And the Hamilton Princess is reporting healthy bookings for January and February which should see the first quarter better than last year.

The Southampton Princess will be sold out for five nights from tomorrow with the arrival of a Europe-wide communications company, which has booked 350 rooms for a sales convention.

And German car manufacturer Audi has snapped up 174 rooms for its conference from the 14-17th of February resulting in a sell-out on the 17th.

The communications company is flying in two charter jets from London Gatwick tomorrow for its staff.

Overall, the hotel is looking at 35 percent occupancy for February, which rooms division manager Roz Rawlins described as "excellent".

"It's wonderful. This is what we have been looking for and we are looking for more of them. It's a great start to the year," she told The Royal Gazette. "We've got two big groups out of Europe, which is great."

She said 35 percent occupancy for February was higher than in previous years, and she could not recall any recent sell-out nights for the month.

The Hamilton Princess' occupancy rate of 50 percent for January is two points up on last year.

Hotel General Manager Paul Tormey said: "We feel very strong about where we are going and we expect February to beat last year's 47 percent occupancy rate. And we feel that this year's first quarter will be better than last year."

Mr. Tormey said his hotel, which caters mainly to business travellers, was now beginning to benefit as a result of corporate conventions stalled after September 11 being rescheduled.

This month, the hotel has several conventions organised by large Bermuda-based exempt companies and a smaller number of overseas corporate bookings.

He believes strong marketing in New York and Fairmont corporate headquarters in Toronto, allied to retraining and the recent multi-million dollar renovations of the hotel, are now bearing fruits.

The entree gold range of 95 rooms has been completed, and the renovation of the lobby, reception and lounge will be finished in April.

"We believe this is the result of the renovation projects and the pent-up corporate demand. There has been heavy discounting in leisure driving some demand, but this is still going to be a very, very difficult year."