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Jan 26, 1999

Fiesta Inns pull out of Belize

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The Fiesta Inn went into receivership just days before Christmas, and business has continued pretty much as usual. However, this week there appears to be a new wrinkle in the hotel’s story. Yesterday media houses received a press release which stated that Grupo Posadas of Mexico has decided to cancel the services it has been providing to the Fiesta Inn after it met with Belize Holdings Development Limited. B.H.D. reportedly informed them it would not respect the business contract originally adopted by the shareholders and which has been in effect for the past two years. The release, which appeared to originate from the Fiesta Inn, was not signed. Hotel sources inside the Fiesta Inn told News Five today that former General Manager Luis Acosta left the country this weekend. He faxed the staff a letter in which he told them goodbye and urged them to work with Stanley Ermeav as General Manager. In the letter Acosta told the employees he had made a hasty departure after corporate headquarters in Mexico instructed him to leave immediately. Despite rumors that Acosta is now being sought by police for allegedly stealing money from the hotel, police told News Five this evening that they have no knowledge of any such incident. Sources also tell us a letter from the Director of Fiesta Inns Michel Montant was sent to Belize Hotel Developments Limited which threatens legal action to recover all amounts due to Hoteles Fiesta Inn and requires B.H.D. to cease using all Fiesta Inn trademarks, reservation and information systems as of January twenty-fourth. When News Five contacted the receiver appointed by the Belize Bank K.P.M.G. Peat Marwick’s Stanley Ermeav yesterday he told us he could not comment but could assure the public that any pullout by Grupo Posadas did not mean the hotel would be closing its doors. Ermeav could not be reached for comment today, but his office says a press statement will be forthcoming. In December Ermeav had indicated to News Five that at that point the existing management agreement with Grupo Posadas was still in force and that it made sense for all parties to work together to preserve and enhance the value of the asset. When the Belize Bank put the Fiesta Inn into receivership in December its total indebtedness was estimated at around twenty million Belize dollars.

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