has signed a key labour agreement with the Bermuda Industrial Union.

And the agreement could lead to the hotel -- closed for almost ten years -- reopening in the first few months of the year 2000.

The news came last night from Camberley Hotel Company president Ian Lloyd-Jones. Atlanta-based Camberley is the firm looking at leasing and refurbishing the old Club Med property in St. George's.

Mr. Lloyd-Jones told The Royal Gazette that a labour agreement had been finalised with the Bermuda Industrial Union following extensive talks.

"We have signed a labour agreement which we feel very good about. Things are moving along very nicely. This was a good piece of the puzzle to get in place.'' Mr. Lloyd-Jones said the signing of the labour agreement made it possible for the firm to get an extension on its option to take over the property -- which has lain dormant since it closed in 1988.

"The news on the labour agreement is that Government gave us an extension on our option,'' he said. "The original option was only valid until June 30 and Government was reluctant to renew it unless they knew we were making progress.'' With the labour agreement in place and its option to lease the property extended until September 30, Camberley now intends to kick the third party due diligence phase of its operation into gear.

At the end of the month, local and overseas architects, engineers, construction experts and designers will converge on the site to look into the physical work which will have to be done on the site and draw up the necessary plans.

If the process continues smoothly, work could begin on the site this January.

Mr. Lloyd-Jones said: "We hope that once we sign the option, we can pull all the bids in for the renovation work within 60 to 90 days. Our expectation is to be able to `break ground' at the venue on about January 4 or 5.

"Then we are looking at 12 to 14 months of renovations and construction which puts us at opening in March of the Millennium.'' Tourism Minister David Dodwell said he felt the project would go ahead without delay.

"I have a great deal of confidence that the process will be completed as planned. Government likes the players involved and is pleased with the concept and theme they have planned.

"It will be a perfect fit for St. George's.'' When asked about financing for the project, he replied: "Financing is in place and I have met the key people in that regard.'' And Mr. Dodwell added that Camberley would secure a long-term lease for the site.

The new hotel is set to open its doors shortly after the Marriott Castle Harbour Resort closes its doors for renovations -- if its owner's plans bear fruit.

Marriott has projected a closing date for November, 1999, at which point the facility will go through with its long-awaited renovations under the guidance of the hotel owners, Bermuda Properties Ltd.

"Us coming along in the year 2000 ensures that any business that they may displace will be picked up by our inventory opening,'' said Mr. Lloyd-Jones.

This was not to say that Camberley was targeting Marriott's business, he stressed. Rather, the sight of hotels making refurbishing could only boost the Island's tourism industry, he said.

"We are delighted that Marriott is closing down and doing renovations as well. With both of us doing refurbishments, hopefully the whole Island will look at upgrading their properties and we'll see people jumping on the bandwagon.''