The hotel chain, Hilton Worldwide, denies that it has an agreement with a Papua New Guinea company to develop a hotel and resort on prime Port Moresby real estate.
Hilton had been linked by the Paga Hill Development Company, or PHDC, to its controversial plans to develop the 13.7 hectare site known as Paga Hill, abutting the capital's central business district.
Residents of the Paga Hill settler community, which was established around sixty years ago, say they were taken by surprise in May when police trucks and bulldozers started demolishing their homes.
The eviction was halted through a legal challenge by the settlers who claim they weren't consulted and that the company acquired the land by dubious means.
PHDC said earlier this year it had an agreement with Hilton to develop the site.
However a spokesperson for Hilton denies this and says they have asked PHDC to remove any references to Hilton in their marketing.