TIJUANA HOTEL FACES CONFISCATION AGAIN

TIJUANA -- A popular hotel that appeared to have cleared itself last week
of suspected links with drug cartels is facing another inquiry from federal
investigators.

The Oasis Resort Hotel and Convention Center had been held in seizure by
federal authorities for the past two years while investigators attempted to
find evidence of its alleged ties to the Tijuana-based Arellano Felix drug
cartel.

On July 17, after the inconclusive investigation, federal officials
returned the hotel to its owners. However, on Friday, federal investigators
showed up at the hotel with a new confiscation order, which is being
contested by the hotel management.

"The hotel has not been confiscated. We have simply received a notification
of their intentions and our attorneys are dealing with this," said Patricia
Uribe, an assistant manager at the hotel. "Everything is continuing as
normal here."

During the hotel's two-year confiscation, federal authorities were legally
in charge of the hotel, but the management team stayed in place and ran the
day-to-day operations. That is expected to be the case if the current
confiscation order takes effect.

The 100-suite hotel is a prominent building on the road from Tijuana to
Ensenada and is notable for its Mediterranean style whitewashed walls and
domes.