More than 40 hotel workers are set to lose their jobs at the end of the month when the Pink Beach Club shuts down for extensive renovations under new ownership, it has been confirmed.But Government insists that the new owners will be seeking to take on more than 200 employees when the revamped resort opens again next summer.The Tucker’s Town hotel was placed in receivership three years ago, but last month Government confirmed that a deal to sell off the property had been reached. Sweeping concessions were offered for the $12.5 million sale, with new owner PBC Holdings awarded $6.5 million of tax breaks over five years.Earlier this week media reports claimed that hotel staff were now facing the axe as a result of the sale.But Government claims the job losses will only be short term, and that a renovation plan will create even more jobs next year.A Tourism Ministry spokesman said the new owner, a subsidiary of Stoneleigh Capital LLC, had gone into partnership with the Capella Hotel Group “to undertake extensive renovations during this winter and spring 2014 to create a 95-room, five-star Capella Resort”.“The reopen date is scheduled for May 2014,” the spokesman added.“All staff were formally notified at the end of July that the hotel will be closed effective August 31, 2013 and all staff will receive full redundancy.“Pink Beach currently has 42 employees and it is envisioned the fully completed and operational Capella Resort will employ approximately 215 individuals.”The resort was under the control of Butterfield Bank while in receivership, but the company relinquished responsibility for Pink Beach after it was sold.Last night a Butterfield spokesman said: “I can confirm that employees at Pink Beach were given a notice of termination by their employer for reasons of redundancy, on August 5.“My understanding was that the terminations are due to take effect at the end of the month, to coincide with the natural end of the tourist season. Employees will receive redundancy payments as outlined in their contracts with Pink Beach Ltd.”Yesterday a Bermuda Industrial Union representative confirmed the union had been contacted by concerned hotel staff facing unemployment.Pointing out that the resort is a non-unionised employer, the representative said: “We did receive a call from the staff to say they would be closing the end of this month or September.“They only called to find out what they would be entitled to in regards to severance pay.”