The Spanish Mediterranean port of Valencia was named on Wednesday host for the 2007 America's Cup, international yachting's most prestigious prize, beating strong challenges from three European rivals.

Shortly before noon on the shores of Lake Geneva, Pierre-Yves Firmenich, the Commodore of the Société Nautique de Genève, ended the suspense that has been building over the past nine months by revealing the identity of the Host City of the 32nd America’s Cup.

"The combination of all the other criteria and the sailing conditions are the reason we chose Valencia," said Michel Bonnefous, the company's chief executive officer. "The wind is very reliable, very steady. We evaluated the worst-case scenario, in other words, how many days you cannot sail, due to the weather. In Auckland, over a period where we lost 15 days, in Valencia, at worst, we would lose just one day."

Organizers plan to build team compounds and an America's Cup village in the basin of the port of Valencia, a few miles from downtown. Because Valencia's bay deepens close to the shore, races can be held within viewing distance of the city's beaches and waterfront promenade.

"We have to deliver the best America’s Cup in history, for competitors, for participants and for the public at large", said José Salinas, the head of the Valencia bid committee. "We will try to do it with our best efforts and I think this is a big step forward for Valencia and for Spain.”

It was a comeback victory for Valencia, after Lisbon had long been seen as the front-runner in the competition.

"Of course we are disappointed, but in this game you can only have one winner, so we accept it," said Patrick Monteiro de Barros, head of the Lisbon bid committee. "I always said that AC Management was doing a very good job, so if they picked Valencia, they have their reasons. I have to respect their decision. I think our bid was very good. They must have had a difficult time choosing between the two."

Monteiro de Barros said he thought all four bids were strong. "But I always feared that Valencia was the strongest competitor. They were very serious, very professional. I wish them well."

"Defeat is a disappointment, but well done to the winners", Marseille Mayor Jean-Claude Gaudin told a news conference. "Maybe Valencia made a stronger financial impression, because I don't think it was down to the infrastructures."

In Naples, about 200 people including Mayor Rosa Russo Jervolino gathered to watch the announcement live on a giant screen set up inside the city hall, news reports said.

"It isn't always easy to understand why they make such decisions," said Sabatino Santangelo, chairman of the Naples bid committee. "We don't agree with the decision, but we accept it."

A delegation consisting of prospective challengers, media, representatives from Valencia and the America’s Cup is now at Valencia where they will be met by the Mayor who will host a reception at the Town Hall to celebrate the arrival of the America’s Cup.

Meanwhile, the city celebrated by letting off thunderous fireworks and a giant balloon-decked yacht was towed through the streets.

On Thursday morning, the delegation is scheduled to tour Valencia, with specific attention on the facilities that will soon make up the next home for the America’s Cup family.

A press conference for local media will follow at 11:00 at the Palacio de Congresos.