May 26th, 2015

Greek Banks' balance sheet clean-up starts with hotel assets

Greek Banks are continuing with sales of problematic and repossesed hotel properties.  Piraeus Bank is in the process of selling a portfolio of hotel property NPLs valued at approx. EUR 250 million. In addition, two iconic Athens hotels (Athens Ledra Marriott and Pentelikon) are being auctioned by Alpha Bank following debt service problems.

Two Alpha bank owned hotel properties are being auctioned off according to Greek press reports.

Athens Ledra Marriott Hotel

The management contract with Marriott International has not being renewed and subsequently the international hotel chain has disengaged from the management of the Syngrou Avenue hotel property after 30 years.  Furthermore, for reasons related to the debt service of the owner company, Alpha Bank announced the selling of Athens Ledra Marriott Hotel in a public auction process.

The process was recently postponed  by two months from the Athens court of 1st instance and will be held in mid-July.  The starting price was set at EUR 41 million.

Athens Pentelikon Hotel

The luxury hotel, located in the leafy suburb of Kefalari, opened in 1927 and has been visited by numerous Greek and foreign personalities. The hotel had been experiencing financial difficulties since 2012, following the bankruptcy of the owner- company, Alpha Bank has sold HOTEL PENTELIKON to a Greek entrepreneur from Venezuela in a public auction process.

According to unconfirmed sources, the purchase price reached EUR 23 million.  This total consideration of EUR 23 million - which was estimated as high by market insiders - shall include assumption of liabilities to employees and social security funds.

According to published financial statements of 2013, the owner company (Hotel Enterprises Vardis S.A.) showed Turnover of EUR 3.3 million and negative EBITDA of EUR 2.1 million, while short-term loans reached EUR 34 million.

Guests and staff at the Pentelikon Hotel were recently informed that the hotel was closing down operations due to financial problems.  Visitors were advised to find alternative accommodation, while employees were told they were no longer needed.

Sigma Catalyst Partners

5 Valaoritou Str. Athens - Chalandri 15232 - GREECE
Tel.: +30 210 68 52 411, Fax: 211 017 33 88
office[at]sigmacatalyst.gr

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