Elegant Hotels Group faces a dispute over plans to develop a hotel in Antigua.
The owner and operator of seven properties on Barbados said Hodges Bay Resort & Spa in Antigua was originally due to open in July 2017.
But the property remains incomplete due to ongoing construction issues described as being outside the company’s control.
Hodges Bay was being operated by Elegant Hotels on a “partially open” basis.
In an update issued today, the group said that although the operating term of the management contract has not started, it has now received a termination notice.
“The company disputes the validity of this termination notice and intends to take all action necessary to preserve shareholder value,” Elegant Hotels said.
The company confirmed that it has about $1.7 million of balances outstanding in relation to Hodges Bay, comprising of a $1.5 million loan to the Hodges Bay management company and $200,000 of unpaid technical service fees.
“Under the terms of the management contract, the loan is now immediately repayable to the company following receipt of the termination notice,” Elegant Hotels said.
The group added that its financial outlook for this year and 2020 remains unchanged.
