The State Department warned American citizens on Monday that staying in Czech hotels owned by the Corinthia Group could violate U.S. laws banning trade with Libya. "They should treat the Hotel Forum and other establishments...as properties owned and/or controlled by the government of Libya", an advisory issued by the U.S. Embassy in Prague said. "Financial transactions with those establishments, including payment for lodging and meals, are prohibited by the (U.S.) Libyan Sanctions Regulations", it

said, adding that those found violating the prohibition may be subject to criminal and civil penalties under U.S. law. A Corinthia Group spokesman said a Libyan company held only a minority stake in the group and Libya did not have effective control. The Corinthia has a string of 21 hotels in Malta, Tunisia, Turkey, Hungary and the Czech Republic. Earlier this month it announced plans to build a $9 million five-star hotel in Tripoli. Group chairman Alfred Pisani, who founded the group in 1962, told a Maltese newspaper on Monday the group hoped to

have 50 hotels in five years with the help of management agreements.