The hotel can thank a case of rheumatism for its creation.

English entrepreneur Richard Berry Johnson ended up in Bermuda purely because his wife was diagnosed with the illness and told that if they did not leave Canada for a warmer climate she would die.

In the late 19th century Bermuda was known as a magnet for the wealthy. The Johnsons relocated here in 1903.

While touring the Island Mr. Johnson, who had been a successful businessman in Canada, decided the South Shore location would be ideal for a hotel — many locals thought he was nuts.

Common wisdom at the time had it that building on sand was disastrous, not to mention any number of potential hurricanes that could damage a building on such an exposed location.

The property was owned by the British Crown. Mr. Johnson acquired it and christened it 'Elba Beach'.

The reason for the name is not known but the Canadian built three guesthouses for his family.

Once construction of the South Shore hotel was underway, he focused on farming before turning his attention to a beachfront pavilion.

Construction was complete by 1910 and soon after, the hotel became popular with well-heeled visitors from America's North East cities — the same type of visitors who frequent the Island today.

The hotel was sold to Harold Hayes Frith in 1924 after several members of the Johnson family decided to move back to Canada. It is around this time that the formal entrance which stands today was constructed.

Mr. Frith changed the name to Elbow Beach, because of the shape of the property, and the hotel was remained the Elbow Beach Hotel. It grew into a sprawling seaside property under his management.

Over the next decade Bermuda's tourism industry boomed — in part thanks to US prohibition — and Mr. Frith decided the time was perfect for expanding the hotel.

He added an east wing with 200 rooms in 1933.

During the late 1930s the hotel suffered two setbacks a fire engulfed its power house and laundry facilities and the First World War broke out. This resulted in costly reconstruction for Mr. Frith at the very same time as visitors flocked home.

Soon after, the hotel had a turn in fortune. The US Navy rented out most of the property for its servicemen during World War Two who were busy scanning intercepted mail between Europe and the US, looking for any intelligence that would help the war effort.

It was also used as the Government storage facility. People would take their rations card to get their allotment of food.

By 1945, as the war was drawing to a close, Mr. Frith revamped the entrance as well as the hotel's surf club.

The property was partially reopened two years later and within months it was sold to Liverpool businessman John Moores.

Further construction began. Within five years the hotel had doubled its capacity and could accommodate 400 visitors. It gained its now famous seahorse logo in 1951 after a young boy found one washed up on the beach.

A pool was added in the 1950s as well as balconies, tennis courts and an open-air dance patio. Also popular was the waterside beach bar.

The hotel also became the unofficial headquarters of Bermuda's College Weeks during that period thousands of US college students would descend on the Island to celebrate their Easter holidays.

In the 1960s the hotel added cottages midway between the hotel and beach. The 1970s brought finishing touches such as air conditioning in public places and a salon. The cottages were also revamped.

In 1983 the United Kingdom's Harpers And Queen Magazine rated Elbow as one of the 300 best hotels in the world. By 1984, after more refurbishments, it had grown to 600 beds and its restaurant, the Seahorse Grill, had doubled in size.

In 1990 the lobby underwent a $3 million refurbishment.

Prince Khaled Bin Sultun Bin Abdulaziz Al Saud and Americans John Freitag and John Murphy of Marcor Realty Limited bought the property for just under $100 million in 1991.

The Prince was first a guest of the hotel in 1985. His intended one-week stay stretched to a month after he fell in love with the Island's pink beaches, lack of gambling and ambience. He returned once more in 1987 with his family before buying the property.

The hotel underwent extensive renovations. More than $25 million was spent on the property in the first year of its new ownership. That same year, it became one of 25 properties worldwide given the prestigious Gold Key Award by US magazine Meetings and Conventions.

Not long after, another $35 million was spent on new conference facilities. In 1997, an additional $18 million was spent. The money went toward several improvements including the spa and pool facilities and a complete overhaul of the Seahorse Grill.

In total $145 million was spent upgrading the property between 1990 and 2001.

Today the main building will close with a redevelopment planned for 2012.