An American-based real estate company have vowed to become a formidable force in the Bermuda hotel industry.

James. M. Dwyer Real Estate Investment and Development already owns the White Sands hotel in Paget and they have pledged to pursue more property on the Island.

Chief financial officer Michael McKeever was speaking after revealing that the company had missed out on the purchase of the Belmont Hotel.

Mr. McKeever claimed the Jersey-based firm had made an unsuccessful offer on the hotel -- which is now negotiating a sale with the owners of Elbow Beach -- but would await the outcome of the deal.

"We made an offer on the Belmont, we thought we were the highest bidder but they are talking with somebody else right now,'' he said. "If it falls through we will be waiting in the wings.

"We are going to be a formidable force in Bermuda and we are looking for properties there.'' The sale of Belmont hotel to Elbow Beach looks set to go-ahead, bar any last minute hitches, according to managers of both properties.

Elbow Beach manager Bill Shoaf said both parties were under contract and a sale looked likely within the next two months.

And he said that he was not aware of another potential buyer.

Belmont Hotel general manager Gordon Slatford said he had heard nothing of the rumours.

Bill Shoaf said the period of due diligence was expected to take around 60 days, which was required for a property of the size of Belmont, which has 151 rooms, a water dock and golf course.

The end of the period would either see the purchase go forward as planned or the vendor and buyer enter into more discussions.

If another party came forward they would have to wait until the contract expired, when all parties would be notified. In that situation the original buyer would be able to pass on the purchase, however that would be unlikely.

Mr. Shoaf wasn't able to discuss any possible future plans for the Belmont Hotel, if the sale went through as planned.

James M. Dwyer own resort hotels on the east coast of America, along with the White Sands.

Mr. McKeever said the company's aim was to convert hotels into units that could accommodate guests for longer stays than a week, and particularly families.

"The Belmont would have been perfect for us,'' he said.