Turmoil in the world's credit markets will not sink the Park Hyatt resort project at the former Club Med site, according to developer Carl Bazarian.

He is currently on the Island with a team of architects and landscape designers this week to tour the vacant site overlooking St. George's and begin fine-tuning plans for a proposed $294 million Park Hyatt hotel and resort.

The collapse of investment banks, including Lehman Brothers, and the severe curtailment of credit and lending in financial markets has put a dent in the ambitions of many high-price development projects, such as the stalled redevelopment of the former Wyndham Resort in Southampton. But Mr. Bazarian said yesterday he was confident the east end project will move forward as planned and can even benefit from the credit crunch fallout that will bring down construction costs as other projects are shelved or delayed.

Asked about the financial reality of the development, Mr. Bazarian said: "We are very aggressive. Hotel development is one of the most difficult markets in the world for raising capital."

He said his company Bazarian International, was dealing with its "traditional equity players" who would follow through.

"We are expending money now and we are going full steam ahead. I am going back to my (financial) sources," said Mr. Bazarian.

The developer said now was a good time to be starting such a major construction project with builders and construction companies hungry because no new hotel products are likely to be built in the Caribbean or eastern US during the next 36 months as a result of the credit markets.

The project has entered a period of intensive design work, which should last for the next six months, after which Mr. Bazarian sees the start of ground work with "dirt moving" beginning at some stage in 2009.

A mixture of building and landscape architects and engineers accompanied Mr. Bazarian for a tour of the former Club Med site to better visualise the possibilities for the planned hotel and its accompanying mixture of fractional and condo units.

E. Michael Jones, who is the on-Island spokesman for Bazarian International, pointed out that assembling such a group of hotel designers and bringing them to Bermuda was evidence of the total commitment to the project.

Mr. Jones said the team had a tough job ahead to fit the various elements together on the limited land area.

"The object is to figure out how to make it all work on the site. We have to make sure that we have the intimacy that we need," he explained.

"Park Hyatt are very particular about how they place their clients. The amenities and details they require are amazing."

According to Mr. Jones, Bermuda has found the perfect match in having Mr. Bazarian as the developer as he understands the Island and its people.

And of the team of designers who were looking over the east end location, he said: "They are all well experienced. They have worked on hotels all around the world."

The party, led by Mr. Bazarian, wandered around the grounds of the former Club Med resort, the main building of which was imploded at the end of August after lying empty for 20 years.

The rubble from the collapsed building is still being carted away from the site in trucks, while demolition of smaller auxiliary buildings, including the St. George's Golf Course clubhouse is ongoing.

Speaking as a St. Georgian, former town mayor Mr. Jones added: "I'm 100 percent certain this project is going to go ahead. It will continue, unless there is another crunch that comes along.

"Carl has not stopped. Bringing people like these (designers) to Bermuda is expensive. There is no doubt in my mind that this is going to happen."