At a ceremony on the Cabinet grounds today Park Hyatt signed a management agreement with hotel developer Carl Bazarian to run a new hotel at the old Club Med site.

While Park Hyatt had previously been linked with the proposed $294 million five star hotel the signing, which was witnessed by golfer Nick Faldo and Premier Dr. Ewart Brown, formalises the deal after other hotel projects have been hit by the credit crunch.

Mr. Bazarian said work would begin next year and the hotel should be ready by the first quarter of 2012 or even late 2011.

Dr. Brown said Park Hyatt was one of the most honoured hotel brands on the planet.

He said: “After today our East End gem will be formally linked with the world famous Park Hyatt brand in a partnership that will usher in the tourism revival St. George’s has been promised for decades.”

* Full story in tomorrow’s Royal Gazette.