The receivership of one of the Island's top hotels has caused concern about the Lantana development.Experts say the Newstead Belmont Hills Golf Resort and Spa could cause ripple effects across the tourism industry.On Monday Butterfield Bank announced it had recalled a multimillion-dollar loan from the owners of the luxury private property.International audit firm Ernst and Young were appointed receivers and managers of the property. The firm will manage the day-to-day operations with the view to sell it as a going concern.Kevin Petty, the owner of Newstead Belmont Hills, said he was shocked the loan was recalled and will try to raise capital to end the receivership.Mr Petty also owns Moongate Resorts, a company that has been hired to develop the former Lantana site and Munroe Bay.Yesterday Clarence Hofheins, who is the Managing Director at Newstead Belmont Hills and involved in the Moongate Resorts projects, said: “There are concerns about the Lantana project. I called Larry Doyle [the owner of the property who is financing the project] and he said he was concerned about what happened to Newstead Belmont.”Mr Hofheins said no decision had been made about the future of the project; Mr Doyle wants to wait and see what transpires with the Newstead Belmont issue.Just last week The Royal Gazette reported a new road to the 9.4-acre Somerset property was due to be cut shortly.At the time Mr Holfeins said they planned to build a model cottage in the next three months and start construction on a beach club in the summer.Carl Bazarian, the developer of the Park Hyatt on the former Club Med site, said he had not heard about the Newstead receivership but that it was a reflection of what was happening internationally in the hotel industry.When asked if his financing was still in place he said: “I'm still working hard. The financing is still going; everything is fine with HSBC.”The Royal Gazette was unable to reach David Dodwell, of IRC Sandys, to ask if the Newstead receivership had impacted the development of 9 Beaches.Mr Dodwell was flying back from Jamaica yesterday where he won Caribbean Hotelier of the Year.Last week he told this paper they were still positive about the development and were waiting on Government to pass the lease agreement. He said they hoped to break ground later this year.Out of ten proposed hotel developments on the Island the three Lantana, Park Hyatt and 9 Beaches were the ones expected to break ground this year.An industry expert said the Newstead receivership was likely to have a ripple effect across the industry.STR Global track supply and demand data for the hotel industry and provide market share analysis for all major international hotel chains and brands.Spokesman Jeff Higley said: “Any time a hotel goes into receivership, it raises a red flag in the market.“Development is based on available funding and lenders most certainly look at current market conditions as a basis for providing capital for any project.“Ultimately, it boils down to the reason for the receivershipif it is based on market conditions that include falling occupancy rates and a drop in average daily rates at hotels, then lenders will think hard about investing in a development project until those conditions improve.”United Bermuda Party MP Cole Simons has previously said Bermuda's Government is partly responsible for the receivership because its marketing campaigns did not bring enough tourists to the Island.The Newstead receivership could also drive down the price of the Sonesta/Wyndham site according to someone involved in the negotiations.The individual, who did not want to be named, said: “If Newstead goes for sale people will be more interested in buying a newly built hotel than an empty lot.“Overall I think it will cause other developers to pause and say, if Bermudians couldn't make it work, can we?”The Sonesta/Wyndham site went into receivership late last year.