Bahrain's National Hotel Company (NHC) has signed a multi-million dinar contract with Mohammed Jalal & Sons to begin a massive upgrade and refurbishment of the Diplomat Radisson SAS Hotel in Bahrain's Diplomatic Area.

NHC chairman Ahmed Al Zayani signed the agreement with Mohammed Jalal & Sons chairman Mohammed Jalal, to begin the refurbishment of all 246 rooms, as well as alteration of public service areas and food and beverage outlet upgrades.

Project details and costings were not disclosed, but NHC general manager Abdul Rahman Morshed said that it will cost around BD2 million ($5.3 million).

The main work of the renovation project will be carried out by Kontra Construction, which is a subsidiary of Mohammed Jalal & Sons, while the interior design will be done by Muscat-based Zubair Furnishing Company.

Al Zayani said the remodelling project will take eight months to a year to complete and that work should begin next month.

"It will be divided into two phases, civil works and fixtures, and furniture and equipment upgrade," he said.

The refurbishment will be a prelude to the company's BD6.5 million furnished apartments project. The proposed 14-storey tower would be built north of the hotel and would take around three years to complete.

Al Zayani said the luxury residential unit would complement and supplement the Diplomat Radisson SAS Hotel. "However, it will not compete with it," he pointed out.

The new luxury complex will offer 78 one-bedroom, 26 two-bedroom and 13 three-bedroom units, all with seafront views. It is expected to be open by 2005.