The Bermuda Hospitals Board (BHB) has rented the Grape Bay Hotel on the South Shore in Paget for the next two years.

The property will house nurses while King Edward VII Memorial Hospital upgrades the current nurses’ accommodation at the hospital.

The hotel and Surfside Beach Club are run by Miami-based hotel management company Tecton Hospitality.

Yesterday a spokeswoman for the BHB said: “Bermuda Hospitals Board plans to temporarily rent 22 rooms from Grape Bay for nurses during the renovation of the Queen Elizabeth Nurses’ Residence (QENR), which is planned for later this year.

“These rooms were available for rent and will allow us to decant QENR for the required length of time to efficiently manage the work required.

“The renovation to QENR will enable us to significantly increase the amount of nurses that we can house in our own accommodation, which will help BHB provide a more cost-effective housing solution, while improving our ability to recruit health care professionals from overseas.”

Asked how long the rooms had been rented for the spokeswoman said: “We expect renovations to take two to three years.”

Asked what the rental would cost, she said: “The final contract is not yet signed, and this information is commercially sensitive.

“We thank the hotel for coming to the aid of the BHB during our redevelopment phase.

“However, it should also be noted that the full burden is not BHB’s as the nurses in the accommodation will pay a portion of the rent, just as they currently do at QENR.”

The hotel has 24 rooms that overlook South Shore as well as a poolside terrace.

Tecton Hospitality did not respond when asked if the property would still be run as a hotel and what the future plans for it involved.

When the Miami company took over the management of the two properties, president Raul Leal said: “We are delighted to have these two boutique properties in Bermuda in our portfolio.

“They are conveniently located near the beaches, golfing, and the town of Hamilton. We have captured two gems on the Island that will be undergoing renovations. They are scheduled to be included in the Desires Hotels modern boutique collection in 2010.”