Grenada's largest hotel, The Grand Beach Resorts.

ST GEORGE’S, Grenada, CMC – The Grenada government and the main opposition New National Party (NNP) are blaming each other over the collapse of a deal to sell the island’s largest hotel, Grand Beach Resorts, to British Formula One driver, Lewis Hamilton.

Prime Minister Tillman Thomas has criticised the decision to transfer ownership of government lands, on which the 234-room hotel is erected, to Hamilton, whose paternal grandparents hail from Grenada, before the popular driver could finalise a purchase price with the owner of the hotel, Issa Nicholas.

Prior to the 2008 general election, the then Keith Mitchell government signed over the 24-acre beach front property to Time Bourke Holding, which represents Hamilton.

The deal was undertaken while the lands were still under a 99-year lease to Nicholas.

“In the election heat the New National Party government signed away Grenada’s property before Issa Nicholas and Time Bourke Holding could conclude a deal and this is where the transaction fell apart. It is a deal I am not happy with,” said Prime Minister Thomas.

“If, as a government, I had to deal with that transaction, the first thing I would have done was to ensure that there was a sealed deal between Issa Nicholas and Time Bourke before I transfer Grenada’s property.”

Prime Minister Thomas had initially announced plans to review the Grand Beach project but has made no further announcement about his government’s intention.

The annual EC$250,000 (US$92,592) lease payment Grand Beach makes to the government is now being paid to Hamilton’s company because it now owns the lease hold for the land.

“What the New National Party government has done is they have dealt Grenada out of the deal completely. Issa Nicholas has the freehold. Time Bourke Holding has the leasehold and Grenada has nothing,” the Prime Minister said.

“This is unpatriotic to the height. How could a government transfer 20 acres of land and then turn around and blame a government that has absolutely nothing to do with it”.

However, Mitchell has argued that the deal went sour as a result of public statements made by the new government.

“Look at the Grand Beach project. Up to this day our beloved Prime Minister keeps describing it as a corrupt deal and something that he would never be involved in. That sent a very negative signal.

“The press in England came to Grenada to investigate what they heard was a corrupt deal between myself as Prime Minister and Hamilton. So clearly that poisoned Hamilton and poisoned the atmosphere,” Mitchell added.

Last week, Grand Beach withdrew as a member of the Grenada Hotel and Tourist Association (GHTA) without providing a reason.