THE Dermot Desmond consortium is one of a number that Granada is in negotiations with on the sale of the Sandy Lane Hotel in Barbados and no deal has been done on the sale, Granada chief executive Mr Gerry Robinson said.

Speaking to The Irish Times at the launch of the Shelbourne Hotel as part of Granada's Meridien international hotel chain, Mr Robinson said: "Nobody is in an exclusive position for Sandy Lane and until somebody signs up it could go any direction. There is no done deal until the money is in the bank."

Mr Desmond is the prime mover behind the consortium which has made a £40 million bid for Sandy Lane. But despite Mr Robinson's cautionary words this weekend, it is understood that the Irish consortium is the front runner to buy Sandy Lane, although the deal is apparently taking longer than expected to complete.

Apart from Sandy Lane's 150 rooms and its jet set clientele, it is thought that part of the attraction for the Desmond consortium is that the Barbados complex has ample space for expansion. The reputed bid of £40 million compares with the carrying value of Sandy Lane in Granada's books of £26 million and a more recent valuation by Christies of £32 million.

On the retention of the Shelbourne and its inclusion in the Meridien chain, the Donegalborn Granada chief executive admitted that he personally had an emotional attachment to the Shelbourne. "When we took over Forte, we took a close look at everything and came to the conclusion that the Shelbourne is an excellent fit in the Meridien."

"Being part of the Meridien chain means that the Shelbourne will part of an international booking network and also means that the Shelbourne can be kept up to date with the latest developments in the hotel world. Meridien is a world renowned name and the Shelbourne will be part of the international marketing package," said Mr Robinson.

"This rebranding demonstrates Granada's commitment to the Shelbourne as part of the Meridien portfolio and as an important part of the Irish landscape," he added.

The 80 Meridien hotels are located in 40 countries and recent additions include hotels in Moscow and Tashkent. New Meridien hotels are under construction in Egypt and Indonesia while hotels are due to open next year in Bali and Saudi Arabia.

Since the takeover, Granada has invested £1.2 million in upgrading all the Shelbourne's rooms to first class standards and refurbishing the meeting room facilities.