Island Hotels Group has decided to shelve plans for a major refurbishment of the Radisson Blu Resort because of the massive development project proposed for St George’s Bay.
The refurbishment works for the Radisson Blu Resort were scheduled to start in November, including the construction of another two floors and a complete upgrade of the property.
The directors took the decision following media reports of major developments planned in St George’s Bay and the surrounding area in both the hotel sector and other real estate that would have a material impact on the area, in particular during the construction phase.
“We didn’t want to open a brand new hotel and then building starts all around us, so we just wanted to take some time to establish exactly what’s happening.
“We felt that was the prudent and responsible thing to do. We need to establish what the facts are before we make any decisions,” CEO Winston Zahra said.
Developer Anton Camilleri, known as tal-Franċiż, a council member of the Malta Developers Association, has filed an application on behalf of Garnet Investments Ltd for a project that will stretch from the top of the promenade where St George’s Bay Hotel is located down to the bay, including the gardens of the protected Villa Rosa, and also Cresta Quay, where a new hotel would be built.
The St George’s Bay Hotel site, a few metres away from the Radisson Blu Resort, is the largest of the four sites targeted for development. The application, which is being considered by the planning authority, proposes excavating the site. to construct an underground car park for 1,195 vehicles, together with luxury apartments, a boutique hotel, 15 villas, offices and commercial outlets.
The developer estimates it would take five years to complete, according to documents filed in relation to the permit application.
Mr Zahra said the group wanted to wait and see what would happen with that project before proceeding with the investment in the Radisson Blu Resort. “We’re taking a few months to establish exactly what’s going on in the area,” he said.
The hotel was to be closed until completion of the major refurbishment, scheduled for next summer.
It will still be closed in November but only the necessary maintenance and minor works will now be carried out.
An auction that was meant to start yesterday, selling the hotel’s entire contents, was cancelled. The hotel will be re-opening in the near future, the operators said.
“It is in the company’s commercial interest to postpone the major refurbishment project until more information on these other projects becomes available. The company is having a very strong year and it’s in a very strong position but we still feel we have to be totally responsible in the decisions we take,” Mr Zahra said.
The company said its directors would keep the situation under review and seek more concrete information on developments.