HAMILTON, Bermuda (CMC):

Staff at Elbow Beach have spoken of their shock over the news that 137 rooms in the main hotel will close at the end of next month, throwing 80 Bermudans out of work, according to a report on www.cananews.net.

Some staff told reporters they were unhappy that, after months of rumours, they only learned of the November 30 closure on Wednesday. In all, it is anticipated that around half of the 300-plus workers at the 101-year-old resort, which was named one of the world's top 500 properties this year by Travel+Leisure magazine, will be out of a job.

The hotel on south shore in the central parish of Paget will be downsized to a "more intimate resort" with only its hillside suites and cottages. The November 30 closure will reduce the number of rooms from 235 to 98. General Manager Frank Stocek said the state of the economy factored in Saudi Arabian owner Prince Khaled bin Sultan bin Abdulaziz Al Saud's decision to hold off on a major renovation of the resort and focus on a smaller upgrade.

Premier Ewart Brown, who is also tourism and transport minister, said he was saddened that 80 Bermudans would lose their jobs.

"The closure of any hotel property is difficult at any time, but this is no typical closure. The owners of Elbow Beach have made it clear that they are committed to Bermuda and that this closure is an opportunity to better enhance their product.