There were conditions attached to the £392,000 loaned to the Sefton Group for the creation of suites that are now being sold off.
The money was granted in December 2009 under the Visitor Facility Improvement Scheme at 25 per cent of the total cost - available to all eligible tourist premises.
The group is now looking into selling off a number of the nine suites - Economic Development Minister Laurence Skelly says this will trigger a repayment of a ninth of the assistance and three per cent interest on top.
He says the Sefton has not been given preferential treatment and government will benefit should the sales go through:
Use your Love IOM card credits before July, urge gov
Almost 200 calls made to mental health charity's crisis line
Exhibition featuring local artist's work on display from this weekend
School suspensions being looked into, says MHK
Manxman to be swapped with Ben-my-Chree on Thursday
Teeth survey for children aged five launched
Treasury Minister says VAT cuts for hospitality means cuts or tax increase elsewhere
Commissioner ‘refutes’ allegations of misrepresenting Roundhouse access issues
