Following the outbreak Pedn Olva Hotel has shut and is now “board up” according to Mr Whitehead.
The seaside hotel, owned by St Austell Brewery, is around one mile away from Carbis Bay Hotel which will host the summit.
It is situated inside the G7 secure zone, which covers St Ives, Carbis Bay, Lelant and some surrounding areas.
Speaking to the Daily Mail a spokesperson for St Austell Brewery commented: “We can confirm that a number of our team at the Pedn Olva, St Ives, have tested positive for Covid-19.
“We immediately notified Public Health England of these cases and have been working closely with them to ensure we follow all appropriate safety guidelines.
“Following extensive discussions over the last few days with PHE and Cornwall Council, we have taken the decision to fully close the hotel.
“We fully appreciate the inconvenience given the limited accommodation options available in the area at the moment but the safety and security of our team and guests is our upmost priority.
“The hotel will reopen once a full Covid-19 deep clean has taken place and we have the available staff to run it.”
One staff member spoke to the Daily Mail before St Austell Brewery announced the hotel would close.
They said: “I just think it’s wrong.
“It’s not just their staff at risk, but the other staff and now the customers as well.
“I just don’t think it’s right. The size of the outbreak. With G7 and everyone – it’s ridiculous.
“It’s probably more cases than the whole of Cornwall.
“They’re clearly taking precautions, but it just feels wrong.”
Its membership consists of the UK, US, France, Germany, Italy, Japan and Canada with the EU also represented.
Britain, which is hosting the current G7 conference, invited Indian, Australian and South Korean leaders to attend as well.
The summit, which lasts from June 11-13, will focus on climate change, fighting coronavirus and global security threats.
More to follow…