The deal is off.

The in-principle agreement to sell Raffles Hotel to a consortium led by former Credit Suisse investment banker Mark Pawley was announced on May 8. However, in just three weeks, it was confirmed that the deal will not be completed as planned.

A spokeswoman for the consortium told The Business Times that: "We regret to say that the sale will not be completed as planned. The consortium is very disappointed with the current outcome as we had hoped for a win-win solution involving all parties.

'This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel. We will continue to actively explore other opportunities to contribute to Singapore.'

She also strongly rejected rumours that the reason for the non-completion of the sale is due to the source of the money, or the lack of it.

'The source of the money has always been the same. This has never been an issue and there is no basis for these allegations.'

She added, 'We have the money. To say otherwise is baseless.'

However, she refused to divulge any reasons for the sale fallout, citing confidentiality clauses.