Bermuda failed to show in a list of top hotels in a prestige travel magazine.

But the hotel group set to take over the management of South Shore's Elbow Beach Hotel took two spots in the world's top ten hotels for service -- including second place.

Mandarin Oriental's Oriental Hotel in Bangkok took second place, while the group's Mandarin Oriental Hotel in Hong Kong notched up fourth place.

The organisation, owned by Bermuda-based Jardine Matheson, is set to take over the management of the Saudi Arabian-owned Elbow Beach Hotel from the Rafael Group, subject to the approval of shareholders, in the near future.

And the move could offer some pointers to the group's plans for Elbow Beach in the future.

Elbow Beach spokeswoman Kendaree Burgess-Fairn said: "Elbow Beach is striving for its fifth star. We started the process under Rafael and I know we will continue to strive for it.

"Certainly, it's always good to be associated with, or have the expertise of, the Mandarin hotels and I think they can only help us in our quest for that fifth star.'' Mandarin Oriental's annual report said: "We take great pride in the level of service that Mandarin extends to its guests and for many years our flagship hotels have won awards.'' The group won more than 60 top awards for excellence from worldwide magazines in 1999 alone, according to the report.

The latest laurels come from the influential Conde Nast Travel/Leisure magazine's fourth annual World's Best Service Awards.

The move to take over Rafael, however, has been overshadowed by a power struggle between the Jardine Matheson group of companies, which has been controlled by members and appointees of the Keswick family for 125 years and a US shareholder.

And -- at a meeting of shareholders in Bermuda next month -- shareholders will vote on whether to weaken the Keswick's control of the companies.

The move was sparked after US-based fund management firm Brandes Investment Partners, an eight percent minority shareholder in Jardine Matheson and two percent shareholder in sister company Jardine Strategic, became disappointed with the performance of the two giants.

According to reports, Brandes object to a cross-share holding arrangement which allows the Keswicks and their allies to appoint most of the directors of their companies, making takeover bids almost impossible.

Brandes spokesman Brent Woods said the deal "creates conflict of interest in the management of the organisations, higher costs and lower liquidity'' in share trading.

Jardine Group spokesman Neil McNamara, however, insisted the existing arrangement created "a stable environment to build the business''.

Company chairman Henry Keswick said in a letter to shareholders: "We believe that the motivation behind these resolutions is based on the misconception of the business environment in which we operate.'' But some analysts believe the company is in need of a new direction if it is to become more competitive.

MAGAZINE NJ