Sleepwell Hotels say there is “little rationale” for investing any more money into its hotels on the Isle of Man.
The hotel group is angry at government’s decision to step in to stop the rival Sefton Group failing after it racked up debts of £72 million.
Sleepwell owns three hotels, as well as restaurants, bars and a nightclub and has invested £30 million on the Island over recent years.
Managing director Mark Wilson says the decision has created a biased and dysfunctional commercial environment and the unfair competition will make it difficult, if not impossible, for the group to trade profitably in the future.
He adds that a time when many are struggling to succeed in the difficult economic climate government has made it more difficult by favouring one enterprise over many others.
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