A property developer has been lined up to buy Loughlands Guest House in Paget.

The Royal Gazette understands the potential purchaser is Gilbert Lopes, who hopes to build condominiums on the site.

Mr. Lopes, who has recently been given permission to build a seven storey apartment complex in Dundonald Street, Hamilton, refused to comment yesterday.

Loughlands owner Mary Pickles told The Royal Gazette this week that the 26 room guest house had been sold.

But The Property Group, which is handling the sale, said the purchase had not been completed - although someone had entered "an agreement to buy".

Mrs. Pickles is returning home to England after 30 years in Bermuda.

She said: "I have been here a long time. It has been good while I've been here and I've enjoyed it, so no regrets."

Tourism Minister Renee Webb this week warned she wants to crack down on developers hoping to build just condominiums on property zoned for tourism.

A number of developers have been given permission to build housing to finance construction of hotels and have been given tax breaks under the Hotel Concessions Act.

But although housing has been built at both the former Marriott Hotel, which is now Tucker's Point Club, and on the site of the former Palmetto Gardens Hotel in Flatts, the hotels have not yet been built.

Ms Webb said she wanted to tighten up agreements with developers - which could include penalties or forcing them to build hotels first and housing later - to ensure they don't simply build condominiums and forget about the hotels.