Hotel Problems in the Dominican Republic´s Sousa Bay, Cabarete Keep Escalating

The former partners in the hotels Sosua Bay, Victorian House, and Azurro Clubs in Sosua and Cabarete appear to be fighting a no-win battle.

Local newspaper El Faro reported earlier this week that investor Ian Schembri, a minor shareholder in the company, is attempting to stay involved in the management and control the profits of the facilities by virtue of a management contract that was voided in August, 2004.

In the process, Schembri had two Italian partners forcibly evicted with the help of police. Several confrontations ensued and have included the firing of weapons.

The Ministry of Tourism has proposed that a judicial administrator manage the hotels while the courts wade through multiple lawsuits brought by both parties.

Meanwhile, local hotels are accumulating millions of dollars in debt and Sosua Oceanfront Co., owner of the hotels, is warning suppliers that they will not honor debts incurred by Schembri.

Service at the once popular hotels is reported to be deteriorating rapidly while the drama unfolds.