LOCATED 650 MILES off the coast of Cape Hatteras, N.C., Bermuda is one of the most elegant island destinations in the world. White-roofed cottages dot the island, painted Wedgwood blue, pale apricot, pink, and lime.

Bermuda also makes good business sense for U.S. groups: meetings are tax-deductible for U.S. companies; there is no sales tax; English is the official language; and travelers clear U.S. customs before departing the island.

Two of the island's classic properties have seen improvements. The 593-room Fairmont Southampton, surrounded by lush gardens and a challenging golf course, reopened in April 2004 after closing for seven months to recover from Hurricane Fabian, the worst hurricane to hit the island in more than 40 years.

There is 30,000 square feet of flexible meeting space, including the only multimedia amphitheater on the island. The property's 31,000-square-foot Willow Stream Spa has 15 treatment rooms.

Fairmont's other Bermuda property is the historic 410-room Fairmont Hamilton Princess, on the edge of Hamilton Harbour. After undergoing more than $32 million in renovations, it celebrated its 120th anniversary in 2004. There is 19,000 square feet of meeting space, including two grand ballrooms and a redesigned gazebo room.