Spanish hotelier denies cash flow problems
Published:Tuesday | May 27, 2008 | 4:59 PM
Financiers of a multi-million dollar hotel project in St Vincent and the Grenadines have denied reports of a shortage of funds as the Spanish hotel chain, Oasis, signed an agreement to operate the facility.
Construction of the US$200 million Buccament Bay Beach Resort reportedly slowed last week amid reports of a cash flow problem.
Dave Ames, the chairman of British-based investor group, Harlequin Hotels and Resorts told a news conference that major work on the hotel was being put on hold to facilitate architectural changes suggested by Oasis.
The project, which began in 2005, employs 450 workers but Ames said most of them would be laid off while the final designs are being implemented.
The resort, when completed, is expected to employ 1,500 persons and is scheduled to open in late 2010.
The Oasis hotel chain operates 39 hotels in several countries including Spain, the Dominican Republic, Cuba, Mexico and Morocco.