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The state needs to find a new builder for the 200 room hotel scheduled to be built at the Kentucky Horse Park.
The hotel is part of the preparations for the 2010 World Equestrian Games being held in Lexington.
The original builder bailed out forcing the state to re-open bids for the hotel.
The CEO of the World Equestrian Games, Jack Kelly says this is not a set back. But Kelly says, "there will likely be a scaled down version of the plan resort hotel."
A spokesperson for the Kentucky Commerce Cabinet says the project is still on schedule and should be complete by the end of 2008.
In addition to the hotel a 6000 seat arena will be built at the Kentucky Horse Park.