The S$60m (£19m) resort will be developed on a 2.1 hectare area which currently houses four old colonial buildings. Parts of the historical buildings will be used to create the 125-bedroom Amara Sentosa, which is scheduled to open by 2007.

Facilities will include a destination spa with a gym, swimming pools, sports facilities, a number of bars and a signature restaurant.

Accommodation will be offered in a variety of courtyard and veranda suites as well as deluxe rooms.

Albert Teo, chief executive, said: “This project offers us a unique opportunity to transform the existing colonial buildings into a world-class resort.

“The hotel will provide quality resort-style facilities and activities to appeal to both corporate and discerning independent travellers.”

Amara Sentosa is part of the island’s masterplan which also includes a theme park and a S$140m (£46.2m) monorail system.

Amara currently operates three hotels – one in Saigon, one in Chengdu, China and one in Singapore – with a fourth property under constuction in Shanghai.

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