Plans for the Australian Open are in disarray after a contract to quarantine international tennis players at The Westin Melbourne was abruptly cancelled.
Tennis Australia and the state government are now scrambling to find an alternative hotel, as players are due to arrive on January 15 and serve a mandatory 14-day quarantine period.
Sources familiar with the deal told The Age that the government could be forced to compensate the owners of The Westin Melbourne over the cancellation of the multi-million dollar deal.
The Age revealed on Monday that the owners of 36 private penthouses in the Collins Street hotel were considering a Supreme Court injunction, amid fears the proposal had been hastily put together and could lead to another Covid-19 outbreak.
Management of The Westin Melbourne held crisis talks with several penthouse owners on Monday in a bid to head off a court challenge.
The government is expected to make an announcement about revised plans at lunchtime on Tuesday.