The Welsh Government is considering whether grant funding can be recouped from North Wales mansion developers as concerns increase over the future of two of their former hotels.
Paul and Rowena Williams have bought Plas Glynllifon near Caernarfon and Seiont Manor in Llanrug, Gwynedd, and have also agreed the purchase, subject to contract, of Plas Brereton and Plas Ty Coch, outside Caernarfon.
They announced in May they had sold six hotels in Mid Wales and England to help fund the developments.
They were sold to Coast2Coast, run by Keith Partridge.
Some of the sites closed for a rebrand to be carried out but concerns have been raised that the Knighton Hotel in Knighton and The Radnorshire Arms Hotel in Presteigne, Powys, have remained shut with no sign of work taking place.
In previous years the couple received grant funding under the Tourism Investment Support Scheme and now the Welsh Government is looking into whether some of that funding should be recouped.
They have not received any funding for their North Wales projects.
In response, Mr Williams told the Daily Post they were “saddened” at the continued closure of their former hotels in Mid Wales and Herefordshire.
He confirmed they had received a letter from the Welsh Government to discuss the grants which are understood to be £75,000 for the Knighton and £170,000 for the Radnorshire.
But he said there was no suggestion or communication about recouping any of the grant monies provided to refurbish both properties.
Mr Williams added that he had requested a meeting with officials and this is due to take place at the hotels this week.
He added: “We received scheduled post monitoring visits between 2010 and 2012 and the feedback was extremely positive with the work completed at both hotels.
“We are pleased to advise that we have arranged to meet the Welsh Government later this week at The Knighton Hotel and Radnorshire Arms Hotel if only to put a stop once and for all to all the ridiculous speculation.
“There is an outstanding post monitoring report which we are in the process of completing and which we will discuss with the Welsh Government later this week.”
He added: “Whilst this speculation is very disheartening, we remain positive and are determined to see our plans in North Wales through to fruition and will assist any official body with any queries they may have.”
A Welsh Government spokesman said: “We are aware of the issues and are currently considering whether any public funding for the Knighton and Radnorshire hotels projects can be recouped.”
He added that Welsh Government has provided no funding for the purchase of any of the subsequent properties in North Wales.
Chris Davies, MP for Brecon and Radnorshire, has taken up the case of the closed hotels and has written to the new owners of both hotels in order to meet to discuss the future of these “important local landmarks”.
In response Keith Partridge said the reason for the delays to plans to revamp the sites had been because of the negative reaction in the area since their purchase of the hotels in Knighton and Presteigne.
He said they were now re-thinking the strategy and will provide an update at the end of August.
