development on the nearby Bermudiana Hotel property.

Mr. John Price, president of Princess Hotels International, yesterday revealed the company had filed an objection with the Planning Department.

"There is no question we're very concerned about the proposal,'' he told The Royal Gazette .

"This particular hotel is targeting one of the growing sectors of visitors.

But the hotel itself won't generate one single extra room night. No one will come to Bermuda just because there is a hotel for businessmen.'' The Princess Hotel brings to seven the number of objections filed against the proposed development called the Bermuda Financial Centre.

Other objectors include the Corporation of Hamilton and nearby properties Rosedon, Horizons Ltd. for Waterloo House, Royal Palms and Rosemont Guest Apartments. The National Trust has submitted a pro-tem objection with a decision pending on whether or not to formally object.

Mr. Price, who was on the Island for a routine visit to his company's two Bermuda properties, said he was confident Bermudians would come to the right decision on the development that aims to become the "Wall Street'' of Bermuda.

The Princess, which is owned by Hamilton Properties Ltd., has objected to the Bermuda Financial Centre using arguments similar to those put out by the other nearby properties.

The proposed centre, it says, is "excessive'', extremely intrusive'' and "not in the public's interest.'' The Princess, which earns a sizable chunk of its business catering to businessmen, criticised the centre's office block design as incompatible with the Bermuda image.

It predicted that the intense development would create traffic conflicts and hazards.

"I think the good sense of Bermudians will prevail on this proposal and they will come to the right decision about it,'' Mr. Price said.

In yesterday's interview, Mr. Price also spoke of the struggle of his hotel company and that of the hotel industry at large to emerge from the recession.

His two properties in Bermuda -- the Southampton Princess Hotel being the other -- had increased their occupancies during the past year.

However, they were unable to capitalise on the growth because the Island's high cost environment coupled with the low inflation rate prevented any rate increases.

To make the hotels more financially viable either costs had to come down or rates go up -- developments Mr. Price did not indicate would come about.

Mr. Price declined to comment on the industry's relations with labour.

Bermuda hotels and the Bermuda Industrial Union have yet to sign a new contract more than two years after the expiry of the last one.

"I can't add anything to the debate that your newspaper hasn't already reported,'' he said. "All I can say is that we don't have these problems elsewhere.'' Mr. Price, who lives in Connecticut, said he was in agreement with the Tourism Department's marketing focus on the US northeastern states.

"I think 85-90 million people live in the northeast. That's the prime market.'' He said Bermuda was in an absolutely unique geographic situation to lure visitors from the northeast. In addition, it was well-known and enjoyed a good reputation.

"It should be the prime focus,'' Mr. Price said. "To divert money from the northeast would be counterproductive.'' Princess Hotels International has six properties outside of Bermuda in Scottsdale, Arizona; Palm Springs, California; Mexico and the Bahamas.