expansion.

The Grotto Bay Beach Hotel is in the final stages of a $6 million renovation and if all goes to plan, could add another 79 rooms to its current total of 201.

The hotel is at the vanguard of the new cruise and stay policy, with initial bookings already topping 500, and in the autumn more change will take place.

General manager J.P. Martens said the new cruise and stay programme, although in its infancy, was one part of marketing that was paying dividends.

"We feel very confident about the future,'' he said. "I strongly believe that we have a good destination.

"The cruise and stay is going very well. We have only been participating for a month, but it has been very successful so far -- it is looking good for the future.'' The fourth phase of the renovation is due to start in September and will be completed by March.

Costing between $3 million and $5 million, it will involve relocating offices, expanding the main building and opening two new theme restaurants.

A classical Bermudian theme will be used throughout, with wooden floors, fireplaces and trees.

Initially the hotel was due to be closed for the work, but Mr. Martens said the owners decided to keep it open during renovations following the announcement of the planned closure of Marriott's Castle Harbour Resort in November and work planned at the Palmetto Bay Hotel.

"We didn't feel it would be right to close over the winter period,'' he said.

"There wouldn't be a hotel room between Fort St. Catherine and the Hamilton Princess.''