closure was unveiled yesterday.

At its heart are plans for 46 luxury homes -- described as the "financial engine'' for the venture. Other highlights include a health club and spa, equestrian and carriage centre, a shopping village, and a racquet and tennis club.

Golfers are also in line for a boost with plans for a new club, practice range, and major improvements to the course.

These include giving a new look to eight of the holes, and creating four new ones.

Yesterday the men behind the "master plan'' believed the hotel would become a resort envied throughout the world.

Marriott's regional vice president Mr. Mike Mackie declared: "When complete, the Castle Harbour Resort will have outstanding facilities and will be able to compete with the most successful resort destinations in the world.'' He said the improvements would help the hotel whip up business in the winter months.

Tourism Minister the Hon. C.V. (Jim) Woolridge, for his part, hailed the venture as a vote of confidence in Bermuda.

"It is so important to Bermuda for its major resort properties to continue to improve their facilities because it is the only way Bermuda will remain competitive as an international tourist destination.'' The scheme -- which would give the construction industry a welcome shot-in-the arm -- was announced at a Press conference by Host Marriott, Marriott International and the hotel's landlord, Bermuda Properties Ltd, which is mainly non-Bermudian owned.

An application will be filed with the Department of Planning today.

Yesterday's announcement came amid continuing speculation over the future of the hotel. Marriott chiefs had threatened to pull out if they continued to lose money.

They claimed more than $40 million had been lost since the hotel opened in 1986.

The hotel's cash problems were revealed last year in BPL's annual report to shareholders. It described the losses suffered by Host, the Marriott real estate firm which leases the property from BPL. And it stated that in January, Host advised its landlords it was forecasting cash flow deficits of $2.5 million a year on its Bermuda business.

"It had lost in excess of $41 million since the hotel opened in 1986,'' the report said.

Yesterday, Mr. John Marriott, director of Host Marriott Corporation, explained the decision to invest in the hotel. It followed Government support for the so-called master plan, which, he believed, would fill empty rooms and make the hotel financially successful.

Mr. Marriott said he was grateful for the support and cooperation Host Marriott had received from Government and Bermuda Properties. "I hope the final approvals of the master plan will be issued without delay.'' Last year, the National Trust clashed with BPL over plans to build condos on Catchment Hill, which overlooks the golf course.

Marriott's general manager Mr. Roger Borsink said: "The hotel will concentrate on the golf market and Marriott will develop Castle Harbour's image as a premier golf destination by offering substantially increased value golf packages in the winter months.'' Mr. Borsink added that while the focus would be on golf, the other new amenities would also be significant.

Major plans for Marriott's From Page 1 In particular, the proposed health club and spa would complement Marriott's plan to develop a senior fitness market with a "wellness clinic'' to be run in association with New York's Mt. Sinai Hospital.

General manager of Bermuda Properties Mr. Peter Parker said: "Although the plan will take several years to fully implement, we intend to maintain a first-class golf operation during the improvements by keeping 18 holes in play at all times.'' Mr. Parker said nine of the luxury homes were planned for a site fronting Castle Harbour. In addition, 10 attached homes and 27 villas were proposed for Ship's Hill.

The homes and villas have been designed by Bermudian architectural firm, Barker and Linberg, and will be developed by Bermuda Properties.

Bermuda Properties have asked for permission to sell the homes to both Bermudians and non-Bermudians.

President of Bermuda Properties Mr. Ed Trippe said the homes complex -- targeted at international businessmen -- would create much-needed "activity'' at the hotel. "The whole of the hotel should benefit.'' POINTING TO THE FUTURE -- President of Bermuda Properties Mr. Ed Trippe points out the features of the proposed revamp. With him, from left, are director of Host Marriott Corporation Mr. John Marriott, and Marriott's general manager Mr. Roger Borsink.