The owners of the shuttered Elbow Beach Hotel are in discussions with a potential buyer.

The historic Paget establishment was an early victim of the tourism collapse triggered by the coronavirus pandemic crisis.

However, talks are now under way with a possible new owner.

An Elbow Beach Hotel spokesperson told The Royal Gazette: “The hotel was listed for sale with CBRE Hotels in 2019 and they launched their marketing efforts in early 2020, which coincided with the Covid global pandemic.

“We continue to receive inquiries from various parties regarding the status of the hotel’s sale process.

“We are in discussions with a potential buyer and are not providing any further comments at this time.”

The spokesperson said the hotel would make further details public “when the status becomes more definite”.

Vance Campbell, the Minister of Tourism, hailed the prospect of the property no longer lying idle.

He said: “It will be good news when, and if, it is finalised. It’s good if individuals are looking to develop the property, otherwise it’s just sitting there.”

The hotel closed in March 2020, making all staff redundant.

There had been expectations it would reopen its doors by 2021.

But fears the hotel might never take in guests again were fuelled earlier this year when it carried out a massive house sale.

Hundreds of people queued when everything from chinaware to furniture was sold off at bargain prices.

The restaurant complex at the Saudi Arabian-owned hotel is run by the Bermuda-based MEF group and remained open for business.

Café Lido and the Sea Breeze Lounge and its terrace kept serving diners, although the landmark hotel and its cottage accommodation stayed closed.

The Lido Complex on the Elbow Beach Hotel property reopened in March after being closed during the winter months for renovations.

Speculation on the future of the Elbow Beach Hotel follows the controversial revamp for fellow celebrated resort, the Fairmont Southampton.

A political row exploded in Cabinet over taxpayer-funded financial breaks for the massive $376 million revamp.

In May, Parliament approved tax concessions valued at between $121 million and $133 million over 15 years to site owners Gencom.

The Government also gave a guarantee of $75 million, representing 21 per cent of the revised costs of the project.

The move was strongly criticised by Progressive Labour Party MP and former finance minister Curtis Dickinson, who quit the Cabinet in February after clashing with David Burt, the Premier, over the deal.

Mr Dickinson told MPs this month that the Government was “flying blind” over the real costs of the Fairmont Southampton situation and being “too generous” to developers Gencom.

The ex-finance minister also said there was a risk that other developers could approach the Government for retroactive relief because of the Fairmont deal.