The owners of Skytop Cottages are planning to demolish their units and completely rebuild the site, more than doubling the number of apartments.

The plan is to bulldoze the 11 self-catering apartments by December and reopen in December, 2002 with 27 units and a swimming pool.

Owners Failte Ltd. said the complex in South Road, Paget, needs to be upgraded to meet the higher expectations of travellers who want more.

Failte director Andrea Flood said the customers are out there, but her property does not have enough units to meet the demand.

Failte are hoping to cash in on the Hotel Concessions Act, which gives tax breaks to owners who are building new hotels and guest houses or are carrying out substantial renovations.

But the application for Hotel Concessions relief cannot be considered until planning approval is given. Failte has now applied to the Development Applications Board for approval in principle for the work.

Mrs. Flood said: "We want to totally redevelop the property and give it a new face. It will be a complete demolition and remodelling to go after the market that's there.

"We have families and corporate clients who are demanding a certain quality of product that currently isn't being provided and the only way we can provide is be redesigning. People now are wanting more space.

"We have 86 percent occupancy and we turn away business on a daily basis because we don't have sufficient space."

Mrs. Flood said the new units will have old Bermuda architectural style on the outside, but modern facilities inside, such as a laundry in each apartment.

She said: "We have total confidence in the economy, in the government and in the tourism initiative, and I think you'll find that with most hotels."