The financial crisis is taking its toll on businesses throughout Spain, and isn’t stopping at any door. The famous 5-star hotel Los Monteros on the Costa del Sol, shut its doors last Friday after 5 months of turmoil with its employees. 180 workers occupied the lobby since the closing in protest of the closure.
The Provincial Delegation of Employment urged the hotel owner, Ernest Malyshev to immediately reopen the hotel, warning him that he could be fined up to 187,515 euros. Mr. Malyshev argues that the workers had been acting against the company’s interest, by destroying hotel facilities and putting client’s safety at risk – which has been denied by the the Junta de Andalucia.
Mr. Malyshev’s oil company, North West Oil took over the Los Monteros hotel back in December 2008 for 115 million euros.
Greg Schellhammer, author of the ebook Survive the Crisis in Spain and business consultant specializing in coaching hotels and other gastronomy businesses to weather the financial crisis says: “the situation we see in the hotel Los Monteros is nothing new… and definitely something we will be seeing more of in the near future”
“Speculation and greed combined with a lack of a future-oriented business model will push any business into chaos… And if ontop of this there is a failure in working together with employees, the overall business is bound to be punished sooner or later.”
The emblematic hotel opened its doors in 1962, with only 28 rooms and surrounded by sand dunes and eucaliptus trees. Today the hotel has over 33,000 square meters and 172 rooms, most of them suites and junior suites. The company turned over 20 million euros in the financial year of 2008.