The closure of the Palmetto Gardens Hotel has been halted temporarily after a major re-design of the redevelopment plans.

The Flatts accommodations in Smith's Parish were due to shut next week for an $18-million renovation scheme, but it has been revealed that the hotel will now remain open until the New Year.

The about-turn has come after owner Jeff Amaral decided to ditch plans to build luxury townhouses and villas in favour of waterfront condominiums.

He said there was not the demand for the upmarket villas, which were to cost between $2.1 and $2.9 million.

Now the 40-room hotel will remain open until February, with construction work, permits pending, expected to begin in March.

"Market research showed there just wasn't the demand for the villas,'' he said. "So we have eliminated the villas, and are going with smaller units but more of them.'' Twenty condos will now be built on the site, with starting prices at $690,000.

And the hotel itself will be relocated on another part of the land, becoming a 28-room facility with spa and health club.

The restaurant is due to close as planned.

Mr. Amaral said several of the staff had remained at the hotel whilst the doors were still open, but added that between 12 and 15 people had already left.

He said they had started to inform clients of the change, issuing a bulletin.

And, he added, the hotel had local business to rely upon.

"We are not doing too bad,'' he said.

The Palmetto was due to close next week, just days after the Marriott Castle Harbour shut its doors.

The existing hotel is to make way for a facility for the Millennium, with state-of-the-art communications, catering to both business and leisure travellers.

And there could be the possibility of a lease back option on some of the condos -- providing additional accommodation throughout the year.

Construction work is expected to take between 12 and 18 months.

In addition, Flatts Village is set for extensive changes to make it a more desirable place to live and visit.