The two hotels La Florida and Miramar in Barcelona, have both been embargoed and will subsequently be passed over to the property of the German Aareal Bank. The two hotels have been seized after owing 70 million euros.
The Barcelona newspaper “La Vanguardia” has announced that the two hotels have been seized, after the American Apollo fund – now called Area Property Partners, decided to liquidate their Spanish subsidiary.
The American investment fund spent 100 million euros between 2005 and 2007 on the two hotels. Despite the sizeable investment, the two hotels have not been successful, and both hotels have been without management since January.
Area Property Partners has spent over a year trying to selling the two hotels. Unable to find a buyer, the investment fund reduced the price to 50 milion euros. Despite the reduction in prize, most offers were still 10 per cent below that figure. The German bank foresees keeping the establishments operational while it seeks a buyer.