However, Alderney’s General Services Committee Chairman Graham McKinley has written to him to apologise for “unacceptable delays” in the administration of his plans for the site at The Butes.

It's said that delays over parking, traffic reports and mixed messages from two Committees – Building & Development Control and General Services – led to Mr Hayes pulling out of his proposal.

Mr Hayes’ decision has thrown the spotlight on the way the States deals with planning applications with CEO Andrew Muter promising a review of the Belle Vue issue and an analysis of the planning process.

It is understood the Belle Vue will now be put back on the market unless Mr Hayes can be persuaded to change his mind.

Pictured: The former Belle Vue hotel. 

Mr McKinley expressed his and the States’ “sincerest apologies” and hoped Mr Hayes would reconsider.

“I have huge sympathy with Mr Hayes who has demonstrated such tremendous patience,” he said.

“If we want people to invest in the Island, we need to be much better at planning decisions and support services. Mr Hayes has my full apology – we messed him about and we shouldn’t have done.”

Mr Muter said: “We deeply regret the delays and confusion in the Belle Vue process and we hope that we can resume discussions to make this project happen in the future.

“Alderney needs the kind of accommodation and commercial services that Mr Hayes was proposing and we hope that in due course the streamlining of our governance will make the States more efficient in matters such as this.”