ABOUT 50 investors who own villas at the Fiji Beach Resort and Spa on Denarau Island have threatened to lock up their villas from today.
This as some villa owners have had to sell their properties to repay loans they took to invest on Denarau.
According to the New Zealand Herald, the deal with villa owners was that they would get 10 weeks a year in their villas and the rest of the time, their properties would earn them a handsome return off the rental income gathered from hiring out the rooms.
Property developer Rob Vereyken purchased a two-bedroom beachfront villa for $820,000 in 2006 and was promised a return of $27,000 every three months.
While Mr Vereyken has had to pay $50,000 in interest annually to service the mortgage on the property, so far his average quarterly return has been $2500.
He said it was impossible to know how much they should have been getting.
"We've never seen a statement from Hilton to see what our true occupancy and returns are," he said.
Invercargill investor Trevor Rogan estimated that the current total owed to owners was $5.5million and counting.
Mr Rogan, who is at the forefront of a group of 50 investors, said they had given the property receivers, New Zealand-based KordaMentha, and managers, Hilton, notice that they would lock up their villas from August 1 unless a new management contract could be negotiated to give the owners control.
Responding to queries from this newspaper, a Hilton spokesperson denied any imminent disruption to the hotel's operations.
"A recent report suggesting the imminent disruption to the operations of the Fiji Beach Resort and Spa managed by Hilton is unfounded.
"Hilton is committed to working towards a successful future with all parties involved in the Fiji Beach Resort and Spa managed by Hilton," she said.
Meanwhile, another villa owner former All Black turned celebrity agent Andy Haden said the resort was running at 89 per cent occupancy and that it's upkeep and maintenance "looks good".
Mr Haden believes the injunction to freeze all payments has prolonged the suffering of villa owners.
In a bid to have liquidators appointed to Denarau International and seek an amendment to an injunction last year that blocked all payments to them, some owners have sought redress before the courts.
Receiver Grant Graham of KordaMentha said a payment of $1.8million was due to be made to owners in the next two weeks.
Mr Graham said that he did not believe the lock-up would go ahead.