Effective midnight, Tuesday, November 8, Jamaica’s first luxury condominium resort, The Palmyra Resort and Spa, in the tourism capital, Montego Bay, will cease operating as a hotel.
The property, which was taken over by its creditors, Royal Bank of Canada (RBC) and National Commercial Bank (NCB), in July this year, will remain closed until a buyer is found, highly placed sources told The Gleaner.
The staff was advised of the impending closure by receiver Ken Tomlinson and his team this morning. Some 35 members of staff will be affected by the closure.
According to the source, Palmyra was costing the banks an average of US$1 million per month to maintain the 300-room property, which was taken away from investor Robert Trotta. The three-tower property is unfinished.
Trotta, who owed the banks an average of US$110 million, plus other creditors, was forced to hand over the property.
Trotta, in a press release in July, explained that the global recession had impacted the resort development.
His group had invested more than US$100 million into the project which started construction in 2005.
He said then that management had budgeted to finish the resort and ultimately pay back its lenders from proceeds of the condominium sales.