July 26, 2009 at 6:23 am #55128GJParticipant
Once owned by Aifos and sold to Alan Sugar at knock down price at auction
July 26, 2009 at 8:46 am #93642
It has been on sale for a long time. Maybe not as great a bargain as it appears. The Hotel still needs a complete update. The once perfect location is now surrounded by massive developments and most of the balconies now overlook the Toll road! The rich clientele have moved on. Hotel occupation has fallen 11% to 20% this year (depending which newspaper is read). The workers will have accrued costly “rights” which the company will have to address.
July 26, 2009 at 9:38 am #93643GJParticipant
Perhaps he will buy the 2 Guadalpins in Marbella and Banus next. Although I seem to remember the rooms were sold to investors back in the days. As I remember it you owned the room and shared the occupancy profit less costs and could sell it in 2 years for double the price of course.
July 27, 2009 at 12:40 am #93649
I’m sorry but I know prices have dropped and everything is not as rosey as it once was but 2.5m for a 96 bed hotel on the cds. That really has to be a bargain in anybodys books? Surely this is incorrect?
July 27, 2009 at 7:10 am #93651
Heard that the buyer will have to take on 25 million of debts too. Don’t know how true it is. Whatever is done to the Hotel it won’t attract the rich anymore, even people using cheap package holidays don’t want to sit looking at a motorway.
July 27, 2009 at 8:04 am #93652
It should be clear of any debts. A few years ago the bank was asking in excess of 36 mill and there were debts.
In the last couple of months it came to me debt free, the management were still Aifos but on a day to day managing basis, 3 companies had tendered for the management contract. It had been refurbished and turning a profit. At the last count they were looking at offers on an asking price of around 12 mill, which dropped to 9, still with no takers!
Several interested (not through me) had cash that couldnt be proven, shall we say and so was not accepted.
Not totally surprised to see it go at that price but also I agree the location itself is good but was spoiled terribly by some cheap and nasty throw up apartments.
July 27, 2009 at 8:18 am #93654
They say it was refurbished a few years ago but it doesn’t look good. We were there a few months ago and it’s tired and early 80’s style
July 27, 2009 at 8:31 am #93655
I can imagine. I havent been there for ages. Anything Aifos does is shabby and nasty!
July 27, 2009 at 11:13 am #93663
Well, the plot thickens! The bank are adamant it hasnt been sold! The bank did get the auction suspended twice and apparently all thats been sold is one plot out of the three! And that had debts which have to be cleared.
Apparently they are really annoyed at the article as now everyone will think its cheap for sale, BUT it was out there well below the mortgage on it anyway
Would be nice if they were clear on policy and I remember why I dont deal with these idiots!
July 27, 2009 at 11:51 am #93664
Another reported version is this:
Alan Sugar has purchased the three plots.
Daniel Sugar, Alan Sugar’s son, representing the Amsprop Spain S.L. company offered 682,052 € for one plot and 818,462 € for a second, corresponding to the thalassotherapy area and the tennis courts.
Sugar also offered 1,499,486 € for the third plot which is the hotel itself.
Under Spanish law it will be awarded to him unless a third party does not better that bid in ten days.
Apparantly the Nueva Rumasa company may be interested.
July 27, 2009 at 12:26 pm #93665
That makes sense, and is why the bank says it hasnt sold either as this must be the worlds slowest auction!!! Maybe there will be a higher bid – but my clients have still gone to view today as its still available!!!!!!!!!!!!!!!!! (allegedly!)
July 29, 2009 at 1:50 pm #93709
So how much did it acutally sell for? I had also heard it was up at around the 11 million mark – and that was being reposessed due to debts by Aifos…..surely 2.5 million wouldn´t cover the debts as if so they could have sold it themselves for more and turned a profit surely?
July 29, 2009 at 2:05 pm #93710
How do you make a profit out of a run down shabby hotel overlooking a motorway and occupancy on the coast is down over 10%? I wouldn’t want it free, especially with over a hundred staff to pay!
July 29, 2009 at 3:09 pm #93715
As far as I was aware and according to the paperwork I had there were no staff wages or anything outstanding as its a tendered management company who have the contract, in fact its still aifos but on a day to day management basis.
The banks can let it go if they are only dealing with the principal debt and let it go for that sum, it has been through auction before in which case the cum the court can legally accept will be less.
The system is complicated and even after the bid is accepted, in this case, there is a 10 day window for a higher bid to come in.
Need to go talk to the subasteros!!!
Thats why I dont deal with them, its never going going gone!! 😯
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