UPDATE: Holman Grand hotel to close Monday

Ryan Ross
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Holman Grand, Charlottetown

After months of speculation about its future, the Holman Grand hotel  in downtown Charlottetown will be closing its doors Monday.

In a news release issued late Thursday afternoon, Jan Schöningh, who is CEO of the hotel’s owner Homburg Invest Inc., said it was clear the Holman Grand wasn’t performing as expected.

“This is not a decision we wanted to face,” he said.

Homburg Invest Inc. has been under creditor protection for more than a year and has sold several properties during that time. The company owes the province about $16 million it borrowed for the Holman Grand’s construction, for which the government has a mortgage guarantee.

During the summer, the company made the decision to put the hotel up for sale and has held talks with the province about getting money to fund the losses until a long-term plan for the Holman Grand was developed.

The court appointed monitor Deloitte & Touche has been releasing regular reports throughout the restructuring process and in the last report it included a forecast of $248,300 of “external hotel funding” over a nine-week period, although it didn’t specify where the funding was expected to come from.

That report also said Homburg Invest planned to stop paying for the Holman Grand’s losses, but didn’t say when it planned to do so.

The news release issued Thursday said the Holman Grand has consistently generated operating losses and wasn’t sustainable under Companies’ Creditors Arrangement Act conditions.

Schöningh said Homburg Invest has been operating in Charlottetown for more than a year and the company appreciated the dedication of its employees, as well as the patronage of the hotel’s guests.

“It’s very unfortunate that we have had to make the decision to close our doors. Our focus is on our Holman Grand employees and customers during this process,” he said.

When contacted Thursday, P.E.I. Innovation Minister Al Roach said the province is taking steps to recover the money Homburg Invest Inc. owes.

“We’ve instructed legal to immediately demand our loan on the hotel and seek to enforce our first mortgage,” he said.

Roach said he didn’t have any other information about the closure, other than that the hotel staff were learning about it Thursday afternoon.

When asked if the province could end up owning the hotel, Roach said the first step is to demand the loan.

“If they come back and pay us our loan then nothing happens, but if we continue on like that, we’ll have to wait and see where that leads us when we demand our loan and there’s a process that has to take place there,” he said.

“It may very well be that the hotel will go up for sale somewhere down the road.”

Roach said the hotel is an attractive property in a good location.

“I’m being very optimistic that there’s interested parties that would be interested in the property and our hope is this situation will resolve itself very quickly and we get all those people back to work,” he said.

Opposition innovation critic Hal Perry said the government has been in talks with Homburg Invest Inc. for weeks, but shouldn’t have loaned the company the money in the first place.

“If they (government) had been fiscally responsible this would never have happened and they never would have had to cut a deal like this,” he said.

 

rross@theguardian.pe.ca

twitter.com/ryanrross

 

Organizations: Holman Grand hotel, Homburg Invest Inc.

Geographic location: Charlottetown, Prince Edward Island, Europe United States

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Recent comments

  • Matt Cameron
    November 02, 2012 - 21:33

    Well, I'm sad this has happened. Having spent a few days at each the HG & The Delta, I can say that both have good staff but The Delta is turning into a dump. $350/night for a room the cleaning staff are embarrassed of. It's like a 1970's Holiday Inn. At least the HG had nice rooms. That said, our Government HAS to stop getting into bed with private business which should, instead get it's financing privately. Not from tax payers.

  • Marion
    November 02, 2012 - 18:36

    There must be some way this LIBERAL GOVT. can be forced out of office before the Province goes broke. Lets face it, This Hotel was built by the Liberal Govt for some of their Liberal friends to pick up at a fire sale price. There is NO PARKING someone said that they were going to have Valets parking customers vehicles. Valet parking went out years ago when a Valet took a customers car for a spin and smashed it up. The SAD THING HERE is that the Contactors and Sub contractors NEVER GOT PAID. The same thing is going to happen to Contractors building the Convention Centre, just wait and see!!!! Contractors need more PROTECTION when dealing with this corrupt Liberal govt. " sand boxes " "plan B " and on it goes.

  • Kevin Good
    November 02, 2012 - 16:19

    To plan B'd again. I like it, a new island saying. when ever the government screws up whith another multi million dollar boondoggle we can say we've been planned B'd again! Who's going to make the t shirts? and are the conservatives going to use it the next election campaign.? Stop being plan B'd vote for us..

  • Joee
    November 02, 2012 - 14:55

    Jason. The employees at this property were nothing short of amazing. Shame on you for sullying their name with your hurtful comments. There is something called "pride" and "dedication" these employees were instrumental in the initial development stages, and the building process of the hotel; it was their baby and they poured EVERYTHING they had into trying to preserve its legacy. You can all say what you will, this was a beautiful property with incredible potential, and this negative media followed by the nasty comments of a community opposed to change of any kind did nothing but aid in its demise. It's sickening to me how little comments there are about the future of the 30 plus employees its left jobless; all you people can do is sit there and judge. Thanks to all who have a heart.

    • jason
      November 02, 2012 - 15:44

      I'm not arguing that they didn't work hard at their job. It's just too bad that they chose an ''employer'' (and I say that term loosely) which was a shell company set up by a shadowy illicit multi-millionaire real estate developer who was scheisting provincial and municipal taxpayers by building a hotel that wasn't on solid financial footing --- to the point where this developer was forced to use taxpayer money for financing instead of getting a mortgage from a BANK like a real business person would do. That is my real point. These employees need to move on with their lives and find work with legitimate businesses. Unfortunately there aren't many of those in PEI as you can hardly name a company in PEI that hasn't made it on its own merit - e.g. has not used public funding. So they will probably be forced to find work with a real company in a real province.

    • Sylvia
      November 02, 2012 - 16:59

      I'm sorry for the employees who are losing their jobs. I'm sorry for the contractors who probably never will get paid. I'm also sorry for the taxpayers, of which I am one, for the way this government is throwing away our hard earned tax money. I'm very worried about the future of P.E.I. and what is going to be left for future generations. Because of this government's incompetence, it's one fiasco after the other and we're losing a lot of young people to jobs out west. I'm not opposed to change, I'm opposed to this government who will go down in history along with their so-called leader as the worst government in the history of P.E.I. They're destroying this province one step at a time, one day at a time. I think an excellent idea would be to take the name Homburg off Confederation Theatre and change it to honour Sam Sniderman, a truly great Canadian.

  • University
    November 02, 2012 - 14:19

    could be the new location for the new Homberg Ghiz University.Remember the Premier,s statement"he thinks big and so do I.

  • Mell
    November 02, 2012 - 13:26

    So much for promised jobs and economy builders! Get his name off anything at the Confederation Center and tunnel!

  • pennies on the dollar
    November 02, 2012 - 13:11

    This was part of the plan all along so Ghiz could let the thing go bankrupt and then GIVE IT for pennies on the dollar to a political buddy in the business community. As a taxpayer I will personally sue Robert Ghiz and Allan Roach if they let this hotel go for anything less than $30 million. As an investor in this building, I demand that it be sold above market value at a significant mark up above construction costs. If not, well you gentlemen will be personally served. And if you even think of selling this to one of your political buddies, you will be sued under a class action by the citizens of this province.

  • itolduso
    November 02, 2012 - 12:31

    P.E.I. Innovation Minister Al Roach said “It may very well be that the hotel will go up for sale somewhere down the road.” Anyone taking bets as to what well healed Liberial will be buying the hotel for pennies on the dollar down the road.

  • Ulfric
    November 02, 2012 - 12:20

    Welcome to PEI where there is no plan. Plan A's never work out (hills by the bridge, Holman Grand, Golf Courses) and Plan B's are just as bad. Bottom line is pockets getting lined left and right at the taxpayers expense no matter what the plan. That is the underlying plan of the Ghiz Gov't . Time to come up with Plan C. Ghiz impeachment. What a disastrous fail by the voters sticking to their guns no matter what takes place.

  • hello
    November 02, 2012 - 12:20

    My guess is someone will get a hotel for very cheap? Almost like a present? I ,for one ,am getting tired of almost everything being centered downtown, little parking, etc.. Move on please. Charlottetown is not just confined to a few streets downtown.Sometimes though, it would seem that way.

  • Teddy
    November 02, 2012 - 11:34

    This government doublespeak is amusing---When contacted Thursday, P.E.I. Innovation Minister Al Roach said the province is taking steps to recover the money Homburg Invest Inc. owes.“We’ve instructed legal to immediately demand our loan on the hotel and seek to enforce our first mortgage,” he said.--- Ha ha ha !!!! So this is how an official back off from the bogus claim of a mortgage ' guarantee' sounds. That ' guarantee' talk was useless since the first time the Guardian quoted Ghiz on it. The only thing guaranteed here is that the taxpayer and contractors will lose money. All of the government spin has been an attempt to distract from the actual truth of Richard Brown making a foolish deal with Richard Homburg because Robert Ghiz had an exaggerated view of Richard Homburg. And of himself. Thank you Liberal voters. This is very entertaining.

  • John MacInnis
    November 02, 2012 - 10:48

    After I read this story yesterday, I got to thinking about what it used to like at Holmans in the '60s and '70s. It was a really busy place, and there were lots and lots of people going in and out. The downtown core had a lot more shoppers than we see these days, and everybody stopped in to Holmans.

  • P OFF
    November 02, 2012 - 10:47

    We all know who made of this adventure and it wasn't us . The tax payer , the poor get poorer and the rich are richer and pay little if any taxes at all .Hotel just padded someones pockets.

  • Checker
    November 02, 2012 - 09:47

    This was not expected. The average person knew we could not support another hotel in Charlottetown, just as we can't support the new convention centre being construction against all good common sense. The bigger thinkers,with unlimited access to government money, are all for it but then they alone will benefit. The convention centre will follow suit. The next question is how long will it be before one of the Murphy's pick up the Homburg at a fire sale price and on the taxpayers dollar, leaving the taxpayer with the bill. One has to wonder if this projects are designed to fail from the outset. Responsible politicians cannot always be so stupid unless of course these are well calculated failures from the beginning.

  • Yikes
    November 02, 2012 - 09:37

    i like the way the Liberals never take any responsibility for anything. This was a disaster from the beginning. Just another way to grab tax payers money. If this was the business world - Ghiz would be back to parking cars or delivering cheques - what ever it was he did in Ottawa.

  • David Tierney
    November 02, 2012 - 09:36

    MTPOCKETS, I couldnt agree with you more, Take the Hombourg name from the Confed Centre, and restore the original name that Islander's and tourist's alike have grown accustomed to over the years.

  • Drop
    November 02, 2012 - 09:36

    This whole city is just full of bad...or lack of....smart decisions. I think they were stupid not to have their banquet room on the top floor rather than a really big over priced penthouse that hasn't rented. Think of how many people would have paid to have their wedding up there with the view. Again, smart decisions, good job PEI. Let's see what happens with this convention centre..because people are just LINING UP to have a convention here.*eye roll*

  • If sold..
    November 02, 2012 - 08:25

    If this hotel is sold wouldn't all the leins have to be paid off first by the new ower?? That will increase the cost of this hotel and with no parking, I think this hotel is going to stand empty for quite some time..... UNLESS our thoughtless "FFG" Frivolous, Funding (with our tax money) Government steps up to the plate to give them an secured loan to buy the great hotel with NO PARKING. Maybe they can rename it the Grand Ghizzly Hotel.

  • affsd
    November 02, 2012 - 08:22

    Keep this Hotel open Mr. Ghiz. It could be used to handle the overflow from sleepyhollow.

  • saying it like it is
    November 02, 2012 - 08:09

    What's the difference between Robert Ghiz and Bernie Madoff? None. Both have ''made off'' with money that isn't theirs.

    • Ghiz and Madoff is a very bad comparison
      November 02, 2012 - 14:46

      I don't trust, like nor will I ever vote for Ghiz (again) or anyone of the ghizites. I say ghizites not out of disrespect to Robert Ghiz, but because there is no Liberal party on PEI. However, to compare Ghiz with Madoff is very misleading. For all his evil faults, Madoff was a smart man.

  • taxpayers are the investors
    November 02, 2012 - 08:05

    I hate to break it to you but you and I and everyone else in PEI are the investors in this boondoggle. We ''invested'' into this hotel every April 30th for the last few years and many years to come. And our investment manager is Robert Ghiz, the brilliant Bishops party clown.

  • planb'd yet again?
    November 02, 2012 - 08:01

    I think the province has applied consistent due diligence in this matter. At least, they provided us with the same quality of due diligence as Plan B. I guess the new word on the streets is "planb'd" and it appears that it's fitting to say that Islanders have been planb'd yet again?

  • exactly
    November 02, 2012 - 07:59

    I get such a kick out of letting the amateur Holland College educated civil service in the Govt of PEI handle hundreds of millions of tax dollars provided to PEI by other provinces. And it is stories like this one, Polar Foods, etc. which results. If that money had instead gone into paying down our debt we'd be that much further ahead.

  • Laura
    November 02, 2012 - 07:58

    The issues and complete wastes of our taxpayer dollars just keep adding up for this government. I believe that Ghiz has outdone Binns by far at this point...and we can officially laugh in the face of anyone who brings up Polar Foods. Between PNP, Plan B, Holman, and our grand 2014 celebration PEI will be officially bankrupt before we get to ever cast our vote again. They have wasted so much since being voted in and haven't done anything useful for the island. And we have 3 years left with these jokes?? If PEI isn't bankrupt and purchased by another province and completely overhauled by 2015, I will gladly cast my vote for the NDP party as long as they have a strong team together by then. We need people in office that have worked hard and knows the meaning of being a regular, struggling Islander. I think NDP will be just what this Island needs as long as it's not too late by then...

  • Thanks Liberals
    November 02, 2012 - 06:21

    Throw away 15 million on a hotel that nobody needed,....now throw the HST at us....this has to be the worst government ever....

  • thomas Jacobs
    November 02, 2012 - 00:07

    I would love to see the business plan that was submitted to obtain the government funding. Surely there was a business plan submitted? Freedom of information act, Guardian?

    • Investpei
      November 02, 2012 - 06:27

      Think a name change is all we can hope for. ( The Robert Watson Joseph Ghiz Hotel ) Free parking available at The Charlottetown Mall !

    • Frederic Chopin
      November 02, 2012 - 08:14

      This isn't a business plan, this is an escape plan!

  • pboss
    November 01, 2012 - 23:34

    This is really sad... people on the island need to feel the confidence of being able to build something and sustain it. This hotel is one that could grow and bring potential visitors, i just feel terrible that this has happened to the ch'town economy, my hope is someone will buy this and show just how it is suppose to be!

  • arrrgggg
    November 01, 2012 - 23:28

    What an absolute joke. 15 million gone........I am sure the ghiz govt planned on losing it.......but replaced it with the HST......What a nice hostel.....I mean hotel.

  • Bad investment
    November 01, 2012 - 23:27

    If the government had of checked homburgs credit rating out in the first place they would have seen this was a bad investment,as they were in bad financial shape on the mainland, Charlottetown didn't need another hotel anyways, ppl coming here would have enjoyed a more historical place like Rodds , the old Charlottetown hotel Just saying

  • Joe Blow
    November 01, 2012 - 22:24

    Quite a legacy Ghiz and his crooked business dealing government officials are leaving for itself...isn't it?? Another shady business deal ending in the toilet and the taxpayers on the hook for the governments misspending one more time!!! When will this government WAKE up and realize that Charlottetown is not Toronto!!! We never needed this hotel in the first place and this closure proves it! The business simply wasn't there....but the Ghiz government had to give millions of tax payers dollars to a "Friend" of government to build this unneeded hotel because the Friend thought it would be a good idea!! How many bad business deals and poor decisions is a government allowed to make before we force them all to resign??? How big does the debt actually have to be before something gets done?? PEI cannot afford another month of this Ghiz government and their massive spending mistakes....this has to be stopped NOW!!

  • Gerard
    November 01, 2012 - 22:21

    Just another BIG BLUNDER by our corrupt Liberal Governmennt.....what can I say?????????? The waste just continues.

  • GOODONE-EH
    November 01, 2012 - 21:55

    Plan 'A'???

  • PEI Economics
    November 01, 2012 - 21:40

    Unfortunately due to the remoteness and size of PEI, in order to get companies to invest in PEI, governments at all levels on PEI give loans, grants, subsidies or acquire preferred shares in businesses coming or starting in PEI. This is usually done to get jobs for people on PEI and some of these businesses succeed but some fail. Hopefully the hotel can be sold as the rooms will likely be necessary once the Convention Centre is completed.

  • There is still a future
    November 01, 2012 - 21:19

    It was condemned from the start..lovely building....good food..staff was nice..BUT NO PARKING..one did not have to be a tourism genius to see that....it was a political decison to build it,and a political decision to close it...one cannot blame the govt for trying to make the downtown of this great city more attractive......great spot for ahotel......if you had the parking.............The people who started this project had good intentions ..as was the DELTA at that time.....there are always bumps in the road...we will survive this........don't panic..people want to come to our lovely island....someone will see potential...bumps and all!

  • real canadian
    November 01, 2012 - 21:02

    Way to go Ghiz another sound investment by the Libral party how much does all this andd up to now with the hotel + pnp + new bypass + + + + + + + + + guess itll keep on going but on a lighter not maybe itll be sold off to a friend or family of yours

  • Dundas Sue
    November 01, 2012 - 20:47

    Itws too bad the Holman name has been dragged down witb this!

  • Dundas Sue
    November 01, 2012 - 20:46

    I wonder what the next chapter in this fiasco will be. PEI will lose and the Homburg stuffed shirts will not even lose sleep. When will our givernment learn that we need to invest in what we do well, not try and act like we havde the ability to play ball with these sheisters. Take the name off of the theatre - they dont deserve it or the tunnel the poor theater goers needed because they are all made of sugar and would melt if they dot wet going to the theatre! Sell it to someone who will live here and risk his or her own livelihood instead of protecting money in companies owned by companies who own companies!

  • Donald F.
    November 01, 2012 - 20:34

    It's amazing how history repeats itself and so easily we forget. This is no different than Bernie Dale and the "Dale Corp." talked the PEI Provincial Government into loosing millians on the other large Charlottetown Hotel. All we have to do is dig up some old Guardian reports of the former Hilton, Sheridan, CP and now Delta and the millions the Province lost on that deal. Based on this we can easily look ahead and find out what the next chapter in this deal will be. History is great, but it seems no one uses it as a guideline when moving ahead.

  • ISLAND BOY
    November 01, 2012 - 20:07

    ,,,and our "Peek A Boo" Premier actually considered allowing Homburg to open an Investment Facility on PEI,,, maybe the Department of Education should hire Homburg to advise them on expenditures.

  • Morgan
    November 01, 2012 - 19:20

    Redwater Rustic Grille is a seperate business and they are staying open.

  • wow
    November 01, 2012 - 18:58

    Wow! I'm so surprised! Who would have ever thought! Roach is a failure as a Cabinet Minister....time for him to step down....He has done nothing for the people of PEI

  • peiGuy
    November 01, 2012 - 18:40

    Politics aside (I know that's difficult for all of you!), this is a tragic loss for our beautiful city!

  • matthew
    November 01, 2012 - 18:34

    Red Water Rustic Grille is NOT CLOSING!!!!!

  • What a joke but not a suprise
    November 01, 2012 - 18:34

    And yet another example of our wonderful governments wasteful spending....SHAMEFUL!

  • What a joke but not a suprise
    November 01, 2012 - 18:33

    And yet another example of our wonderful governments wasteful spending....SHAMEFUL!

  • Concerned Taxpayer of Summerside
    November 01, 2012 - 18:28

    $14 million for Ghiz Government fiasco and $5 million for Summerside City Mayor Stewart and his Council fiasco, Can you just imagine the growth if there was someone in these positions with brain power. Disgraceful.

    • The Truth
      November 02, 2012 - 07:02

      Ghiz is the defacto mayor of a small city, Stewart of a small town. Look at the gene pool they come from. The simpletons are getting the best leadership they can expect. Now go back to sleep, your EI cheque is in the mail.

  • Morgan
    November 01, 2012 - 18:23

    I've been told the Redwater Rustic Grille is not closing as they are a seperate company from the hotel. YAY!

  • don
    November 01, 2012 - 18:19

    guess what now ghizzy has his new home and office. now i can see we have lost our 16 mill plus. OK ghizzy we want our money back pay up.

  • Just a stupid nobody
    November 01, 2012 - 17:57

    What makes them think the new convention centre is going to be any better?

  • mtpockets
    November 01, 2012 - 17:54

    WOW THIS BEATS Plan B ALL TO HELL. IT WOULD MAKE A GOOD OFFICE BUILDING INSTEAD OF GOV,T BUILDING ONE . AS THEY SAY. MAYBE DANNY OR TIM COULD USE THIS . Please remove the Homburg name from our fine Confed Centre. They have not even paid for that.

  • maybe
    November 01, 2012 - 17:53

    Maybe the person who is going to build a convention center can buy the Holman hotel and that could be the new convention center.

  • The Hamburglar says you can kiss that loan goodbye
    November 01, 2012 - 17:49

    Who's going to buy a hotel sitting on leased land that cost $16 million to build and a year later is assessed at $9 million?

  • Sylvia
    November 01, 2012 - 17:40

    Would whoever has the authority please take the name Homburg off Confederation Theatre. What a fiasco. What a joke putting that name on the theatre. Anyone with any sense could see this coming.

  • Too expensive
    November 01, 2012 - 17:38

    This hotel was simply to expensive, especially for business travelers. It's really surprising that they would build a hotel within one block of 2 huge federal government buildings and price themselves out of the market of government travelers completely, not to mention every other business in the vicinity.

  • its our money
    November 01, 2012 - 17:23

    unfortunately, this was all too predictable. Not great to have an empty hotel, but would have been understandable if it were private money. But no. It was OUR TAX DOLLARS (or borrowed dollars) that financed this. To make matters worse, some of that money then was "returned" to the province in exchange for naming rights. Phooey.

  • Heather
    November 01, 2012 - 17:16

    The writing was on the wall a long time. I am sorry to see the restaurant close.-great food and the customer service was excellent,

  • Bingomama
    November 01, 2012 - 17:14

    Tim Banks or Murphy Group....You got yourself A Cheap Hotel..The poor staff ,feel terrible for them .

  • Joe Martell
    November 01, 2012 - 16:54

    How long before the Holman Grand Hotel becomes the Taxpayer Grand Hotel?

  • fromaway
    November 01, 2012 - 16:50

    What a waste of time and loss of money that was! So sorry for the employees loosing their job.

  • Squater's right.
    November 01, 2012 - 16:44

    I'm claiming squaters right effective right now. So this place is now mine for all interested.

  • here's a thought
    November 01, 2012 - 16:42

    Since this has gone belly up , I heard the sly crooked provincial money mongers running Province House are looking to build a new overly lavish and expensive building for themselves. Why not appropriate this hotel (since they have no problem just taking what they want), and save the taxpayers of PEI some money for a change? Or has the tender already been sent out to line the pockets of another rich red party supporter?

  • Guy Cousineau
    November 01, 2012 - 16:33

    What are the chances of creditors getting their money now?

  • Diner
    November 01, 2012 - 16:31

    Does this mean the Redwater Rustic Grille will be closing? That would be a great loss.

    • Amber
      November 01, 2012 - 16:39

      Redwater Rustic Grille will be remaining open as they are owned by a separate company!

    • Jamie
      November 01, 2012 - 16:40

      No, Redwater will be staying open!

    • Amy
      November 01, 2012 - 17:09

      No it will definitely be staying open ! Have been talking to the restaurant and they confirmed! My favorite place in town :)

    • nitpicker
      November 01, 2012 - 17:54

      I hope not. I've enjoyed that restaurant and I believe its the only part of the complex that has done well. That said, it may be hard to keep one piece of the building open.

    • Not Closing
      November 01, 2012 - 20:48

      Have no fear. Red Water will be staying open. It is not owned by the hotel.

    • Bernadette
      November 01, 2012 - 22:54

      Agreed that would be a shame. I have stayed at the Holman a few times and love the Grille for breakfast, lunch and dinner.

  • Ellen
    November 01, 2012 - 16:25

    Good god. It was ridiculous to put that hotel there in the first place! So ugly, and an unecessary service. There are enough hotels. And no one held accountable? Atrocious.

    • huh
      November 02, 2012 - 06:04

      No one held accountable? Like who? I suppose you're going to suggest the Minister of Tourism be fired or something.

  • Cornwall Dude
    November 01, 2012 - 16:24

    I'm surprised it's stayed open as long as it has. It wasn't hard to see that the whole thing was dead-in-the-water from the get-go.

  • WERESOSPINELESS
    November 01, 2012 - 16:22

    A child could have foreseen this. What a gullible bunch we are, to think something like this hotel could be sustainable in Charlottetown. What part of blinding obviousness did investors not understand?

  • Eddie Vedder
    November 01, 2012 - 16:22

    LOL... Just another day on PEI. No clue at all.

  • sixteen million and not a dime back Ghiz is big
    November 01, 2012 - 16:20

    Heres another huge loss. Anyone from IIDI and all their due diligence about to stand up and be counted for another 16 million in losses so far.

  • Awwww
    November 01, 2012 - 16:10

    What a shame! such a beautiful hotel and such great staff. I loved being there. It's easy to throw stones when someone is down. Let's just hope things turn around for that location and all the employees who are now looking for work.

    • JETSETTER
      November 01, 2012 - 16:28

      Grand it isn't! I walked through the lobby from the mall and went out the front doors and had to ask someone where the hotel was. Now I've stayed at the Grand Hotel in Stockholm Sweden, now that's Grand. This is probably one of the worst hotels I have ever seen, and I have travelled on business all over Europe and Asia, as well as many other countries. Lasted a year, even with taxpayers dollars. A total disgrace.

  • Katie
    November 01, 2012 - 16:04

    Good. It's an eyesore anyway. I say tear it down.

    • Jarrod
      November 01, 2012 - 16:40

      Bah humbug!!!

    • Aaron
      November 01, 2012 - 17:39

      Good because its an eyesore? Really? Well now it's going to be a useless eyesore so congrats, Kelly, start celebrating. I'm sure all their employees will be thankful for your happiness. Tear it down? Good lord. You're full of great ideas. I assume you will pay for carefully dismantling the eyesore so it's doesn't destroy all the businesses underneath and around it.... I live in reality where this is terrible news for Charlottetown and PEI. I hope it is also terrible news for our increasingly incompetent government.

    • What
      November 01, 2012 - 23:53

      It is not an eyesore! its a great looking building. The rest of the old buildings are more of an eyesore then that one. Would you rather look at a pile of dirt?

    • SallyAnn
      November 02, 2012 - 05:37

      An eyesore? Have you ever been in the hotel Katie? The rooms were brand new, clean and modern, and the penthouse was beautiful! I'm glad to see the restaurant is at least staying open. Most places here in Charlottetown are mediocre at best with old typical hotel decor so it was nice to finally see a new hotel. Eyesore? I don't think so.

    • jason
      November 02, 2012 - 07:53

      Aaron - you know nothing. That building was financed as a house of cards - by us, the taxpayer. And the province and developer ran roughshod over city planning regulations and bylaws forcing a height variance. Not to mention that they outright LIED and DECEIVED the residents of Charlottetown by promising it would be clad in stone similar to Confed Centre. They cheaped out when the project went over budget and now it looks like a third-rate tilt-up from an industrial park in Markham. In fact the Shur-gain feed mill in Summerside that was recently demolished looked better than this tin siding piece of s@#t. And everytime you take a photo of Province House from the Richmond St side you see this ugly thing looming overhead. Tear the sucker down. Too bad for the employees but if you bet your financial future on this house of cards, perhaps you should move to Alberta and work in a real job.

  • Another good investment
    November 01, 2012 - 16:02

    Well here is another wonderful investment by the government. And then they called the theatre at the Confederation Centre Homburg theatre after donating tax papers money back to us!!! wow, this is beyond.

    • pboss
      November 01, 2012 - 23:45

      This is very unfortunate. The sustainability of this hotel should be very quickly taken over b/c there is a very large need in ch'town for this type of environment. I am disheartened by this closure not just b/c of job loss but b/c of the sustainability it portrays to others regarding our island.We are a place worth visiting and also have many opportunities..although this seems bad at first hopefully there will be someone to pick it up soon!!!

    • Ticked
      November 02, 2012 - 10:44

      This island just lost the one thing that made it worthy of coming to visit, you're all just a bunch of money hungry, inbred hicks, they should build a wall around PEI and get rid of the bridge. PEI and its people have no class, you are, collectively a total loss.