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Karl Stagno-Navarra
Negotiations into the sale of the Le Meridien Phoenicia Hotel in Floriana have failed to reach a successful conclusion after talks with Hili Company Limited who were selected as the preferred bidders to the sale offer were abandoned over issues related to an operators contract.
Sources have confirmed that Christie+Co of London – brokers to the property sale – have been unsuccessful in securing the deal with the Maltese company following an impasse with Starwood who are the current management operators of the hotel do not want to sell out their contract as requested by Hili Company Limited.
While Hili Company Limited were insisting that they would be “safer” in terminating the Starwood management contract and were reported to be ready to buy Starwood out, this proposal was met with resistance by the hotel chain that are owners of the Le Meridien brand.
The Phoenicia Hotel has been on sale for a year and the offers submitted for the prestigious property have been defined as “generous and competitive” and included a number of local entrepreneurs who bid alongside foreign companies.
Sources close to Christie+Co in London had initially revealed that negotiations were ongoing with an Irish businessman who had submitted a considerable offer.
However a short-listing exercise put Hili Company at the forefront of the process after submitting a competitive offer for the Phoenicia.
Hili Company, is a long established and reputed group that run a number of enterprises, including Motherwell Bridge, McDonald’s chain, the Baltic Container Terminal in Riga, Latvia, a port terminal in Venice, Italy, Carmelo Caruana Shipping, and real estate.
The deal with Hili Company was expected to be concluded by the beginning of the year, where the Phoenicia would have been sold as a property and a going concern as an existing company with all its operations.
For the past few months, Christie+Co have been trying to sell the property to other bidders, including the Irish business man who has since not come up with the capital and has also been reported to have involved other Irish individuals to back his offer.
Informed sources have also revealed that following a no-show by the Irish investors, Christie+Co followed up with Hili Company again, who insisted again on their position with regards to the Starwood contract.
So far no developments have been reported and the fate of the Phoenicia Hotel that was earmarked by Hili Company to become Malta’s most luxurious hotel remains unknown. |
