The Coral Cliff Gaming Lounge, on the Hip Strip in Montego Bay, St James. - File

Supreme Ventures Limited is revising business operations at Coral Cliff, and is in the process of closing down the hotel and accompanying Ma Lou restaurant, saying the operation is unprofitable.

The lockdown will eliminate 43 jobs, and, according to vice-president, Sonia Davisdon, save SVL $50 million.

The company has already placed Coral Cliff Entertainment Limited in voluntary liquidation.

The hotel plant, which has 12 rooms - five of which were being used as offices - is to remain within SVL's portfolio of assets.

Davidson said there are no immediate plans to sell the property and that for now it might be used to house staff, at intervals.

"There are only five rooms, as others were previously converted to office space," she said.

The hotel, located in Montego Bay on the city's main tourism corridor on Gloucester Avenue - dubbed the Hip Strip - was once owned by Lucille Lue, who is now deceased. SVL acquired the property in 2005.

The business' announced closure comes just weeks after SVL reported a downturn in its gaming and hospitality business segment - the only side of its operation to suffer operational losses in its financial year ended October 31, 2008.

The loss was about $181.6 million - compared to $37 million profit in 2007 - though revenue for the segment had grown by $200 million to $1.15 billion.

SVL is currently reshaping its gaming lounges to drive the flagging business.

Davidson said the company has suspended its plans to expand its number of gaming rooms.

The company established a gaming lounge in May Pen a year ago, under a plan to spread the Acropolis brand across the nation.

But changing economic con-ditions have reshaped priorities.

"Our plan is to improve efficiency and maximise operations at our current slot gaming facilities," said Davidson. "We expect to acquire and change out non-performing games and upgrade plant and equipment at the gaming facilities."

The first game to go was Bingo. SVL plans to invest $75 million this year to acquire new games and upgrade plant and equipment at its gaming facilities.

dionne.rose@gleanerjm.com