Southampton Beach Resort Ltd. completed the purchase of Sonesta Beach Resort & Spa Bermuda from the Aetna Insurance company.

The resort will continue to be managed by Sonesta International Hotels Corporation for up to eight years.

"We look forward to working with the new owner in our joint efforts to continue the tradition of Bermuda hospitality at the resort,'' Sonesta president Stephanie Sonnabend said.

Southampton's managing director Cliff Schorer said: "We are very proud to participate in the fine and continuing history of this beautiful resort.

"The Sonesta staff have unparalled experience in Bermuda and we are pleased to be able to announce our new management agreement.''

Southampton, a Bermudian company, did not disclose the sale price.

Plans have been approved by Government to enhance the oceanfront site with upgrades to the hotel and amenities, a new beachfront restaurant and recreational area and a number of residential units. In an interview with The Royal Gazette last month Mr. Schorer, an American, said he was seriously considering demolishing the landmark property in ten years.

The company said it plans to build 44 townhouses, 16 cottages, open a new upscale restaurant at Cross Bay, construct new tennis courts and demolish two homes at Cross Bay and replace them with two luxury houses.

Mr. Schorer told The Royal Gazette that demolition was a strong possibility because the Bermuda National Trust and Planning Department have complained the architecture is not appropriate.

"We are planning further investigation of the Carlton wing (the main hotel).

"In ten years time that will be ripe for a major change and we will be looking at the fundamental question of the shape, the architecture and the type of building that will be there.''

When asked if that meant Southampton was considering demolishing the hotel and building a new one, he said: "Yeah, absolutely.''