THE sale of the Chelsea Hotel in New Kingston remains stuck in red tape three months after the owners secured a buyer, sources say.

The timeline for the finalisation remains unclear and the Observer was unable to contact owner Sydney Melville for comment as the listed phone number remained out of service up to press time. However, the property and adjoining Tony’s Bar remain open for business.

“The deal is still ongoing but it’s caught up in bureaucracy,” said a source who opted for anonymity to respect protocol.

A recent survey within the Global Competitiveness Report published by the Swiss-based World Economic Forum found that Jamaican businesses are more hampered by Government red tape than the yellow tape of crime and theft.

Bureaucracy in Jamaica actually jumped from the fifth most problematic to the top slot when comparing year-over-year reports.

The hotel, built decades ago, is a known fixture in the city, allowing customers the convenience of overnight or extended stays. It is located in one of the most expensive real estate zones in the island.

Melville operated the entity for 41 years, but began looking for a purchaser about three years ago. In his search for a buyer, Melville had originally enlisted realtors Valerie Levy and Associates to sell the 1.5-acre property. The price tag was reportedly US$3 million at the time.

The property, which borders the Chelsea Jerk Centre, has entrances on two roads, Chelsea Avenue and Richmond Avenue.