SEVERAL Bournemouth hotels have been left thousands of pounds out of pocket after failing to be paid for accommodating delegates during the Conservative Party Conference.

Hy Group, the trading company of Bournemouth Action Holidays Company Limited, which managed accommodation for some 2,000 delegates during the conference earlier this month, has announced that an unforeseen series of events has placed the company in a "temporary cash-tight position".

Payments worth thousands of pounds due to hotels have been delayed.

In a fax to the affected hoteliers, Hy Group stated the cash problem was largely outside its control.

Hy Group, which is based in Westover Road, Bournemouth, yesterday declined to comment on the number of hotels that had been affected and the total of the cash still outstanding.

The letter from directors Ian Birrell and Jane Bowles read:

"We have identified a problem that we are solving, in conjunction with our bankers and professional advisers. Inevitably this is taking longer than we had hoped.

"We will keep you informed and want you to know that we continue to work hard to promote and bring even more hotel, conference and event business to the town."

It also read: "We apologise to all our hotelier colleagues for this situation and request that you allow us a short time to resolve the matter so that we can all benefit."

In addition to managing accommodation for delegates, the Hy Group initiated and managed 35 fringe events, including their own on "The Future of our Seaside Resorts", attended by three mayors and three MPs.

The company has been in operation in Bournemouth for 30 years.

Jane Bowles, Hy Group director, said: "It is a temporary cash-tight position for which we are very sorry.

"We work with hoteliers on a daily basis and we will give them the outstanding money owed as soon as is possible."

Mark Smith, head of tourism and seafront services at Bournemouth Borough Council, said yesterday: "Representatives from the Bournemouth Hotels and Restaurants' Association and a tourism directorate of Bournemouth council have met with the directors of the Hy Group today... The Hy Group has indicated that future arrangements can be determined within the next 24 hours."

A Conservative Party Central Office spokesman said: "The Central Office has paid the money directly due to the hotels. We are waiting for this company to sort out what they are doing in terms of payment."