Monday, June 21, 2010

News update Another developer needed for landmark hotel

TACLOBAN CITY - Leyte Governor Carlos Jericho ''Icot'' L. Petilla does not believe that the Singaporean-backed conglomerate LKY Property Holdings could meet the deadline for its rehabilitation work on the landmark MacArthur Park Beach Resort Hotel which has been set for October this year.

The P300-million rehabilitation of the MacArthur Park Beach Resort Hotel has been momentarily stalled.

Petilla says that if the work schedule has been followed, by this time there should already have been villas erected even as construction of the hotel's main building is started next month to end by September this year.

''As it is I don't think they have followed the construction schedule and I doubt if they could finish on the date stated in our agreement,'' the Leyte Governor said, who pointed out that failure by the developer to finish the job as agreed can be considered as a breach of contract.

Petilla said the two parties, Leyte province and the developer, may have to discuss again the terms of the 25-year contract to rehabilitate and turn the property into a world-class hotel.

Based on reports that had earlier come out, a reason why rehabilitation work on the MacArthur Park Beach Resort Hotel has stalled is because the developer is saddled with other such projects as the rehabilitation of the Mayon Imperial Hotel in Legazpi City, Albay and another project in Camarines Sur.

It was learned that because of this, the province is already scouting for other investors who can turn the property into a world-class hotel.

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