Bristol hotel developer 'spent investors' money on diamonds' Published duration 27 September 2019

image caption Work on Bristol's Grosvenor Hotel should have been completed by September 2017 but was never completed

Diamonds and jewellery were bought using £3m of investors' money intended for the revamp of a hotel, liquidators have heard.

FRP Advisory said it had been told dozens of people invested £50,000 with Grosvenor Property Developers to turn Bristol's Grosvenor Hotel into flats.

They were unaware their cash would be used to buy gems.

Grosvenor intended to use them to repay investors if the project failed, FRP Advisory said it was told.

It said that information had come from a de facto director of the company.

The developer entered liquidation in November last year. Work on the hotel should have been completed by September 2017 but remains unfinished.

Several investors the BBC has spoken to have not had their money returned.

'Payments to Dubai and UAE'

One investor, who wished to remain anonymous, said: "My worry now is that I have lost that money. I'm hoping I could get some back, if not all. Fingers crossed."

FRP Advisory said it had told investors the developer had made payments from its bank account to Dubai and the UAE.

Arjun Khadka, who according to Companies House has been Grosvenor's director since June 2018, has not responded to a BBC request for comment.