eastern section of the facility.

In December, the Tiara restaurant will close and as the rebuilding work gets underway, the meeting rooms will also shut to allow the project to continue.

General manager and vice president Michael Kaile said the plans were still being finalised, but they were the first steps in returning the hotel to its former glory.

The hotel, now managed by Fairmont Hotels and Resorts, is aiming to establish itself as the premier location on the Island for business travellers and play a leading role in the revitalisation of Bermuda tourism.

Mr. Kaile said the restaurant will close on December 18 and the meeting rooms by May. Harley's restaurant and the Colony pub will remain open.

"As a result, the eastern part of the hotel will then be free to renovate and we anticipate business as usual with no inconvenience to our guests,'' he said.

"Our intention is to create `the business address' on the Island. In order for us to achieve this, a reconfiguration of the hotel is needed to enable it to compete internationally.''