There have been quite a few comments about bad karma. Some agree, some don't. That's normal, considering the many years of uncertainty.
But just stop for a while and imagine what would have happened if the construction had begun and stopped midway. That would have been a much worse case. We should consider the developer as lucky, that they could extricate themselves neatly (returned all deposits to buyers of apartment/condo units) without having to face lawsuits.
Bad karma? I personally don't think so. Instead the developer gets a GOLDEN second chance to redesign for a better sell than during the first round (about 50% were sold). I would think they are actually on the path to some good karma.
Very important factor to take into consideration is that while Ritz walked out in 2008 due to the onset of a severe financial crisis, this time around the hotel portion is most likely to be taken up by their very own hospitality unit.