‘Haunted’ Berengaria offered to highest bidder after dud auction
Hellenic sells Paphos plot to Constantinou hotels for 12.5 mln
Bank of Cyprus has conceded defeat in trying to sell the landmark Berengaria Hotel for EUR 2.36 mln and has launched a bidding process for the “best offer” until 14 January.
The bank - which owns the deeds to the derelict property – called for bids to be submitted in sealed envelopes to be opened in Nicosia on 15 January.
Hopes of seeing the once proud resort revived to its former glory were diminished after BOC failed to sell the property at auction in September.
The auctioneer declared the big-ticket sale a no-go despite some interest shown as no bidder was willing to match BOC’s reserve price of EUR 2.36 mln.
It seems the hotel’s history was not enough to attract the cash as real estate experts fear that demand for such properties just isn’t there due to hidden costs.
“When it comes to such properties, the investor has two options if he chooses to bid for it. One is to knock it down and build something new, and the other is to renovate it and reinstate it as a classic mountain-style resort. Both options are extremely costly and risky,” property expert George Mouskides told the Financial Mirror recently.
He said that opting to renovate the Berengaria hotel would be a very risky business.
“Buying such properties at auction, the investor is not aware of hidden costs. These costs can only be revealed with studies and research, which an investor would need time and permission from the current owner to work on the premises,” he said.
Once the most luxurious hotel in Cyprus, it was named in honour of Queen Berengaria of Navarre, wife of Richard the Lionheart, who were married in Limassol in 1191.
Located at Prodromos village in the Troodos mountains, the once-famous Berengaria covers an area of 26,520 sqm with the building itself covering 4,980 sq.m.
The stone-built mountain hotel opened in 1931 and closed in 1984, its rooms and halls that once entertained royalty are now home to dust, graffiti and exposed to the elements.
Having withstood the passage of time, the Berengaria has now become an unofficial and rather dangerous tourist attraction with its share of myths and ghost stories surrounding it.
There are plenty of ghoulish stories to choose from; A former manager who killed himself is said to wander the empty halls in search of new victims, a merchant’s wife supposedly found dead in the swimming pool seeks revenge and a fair maiden dressed in white linen is said to be visible only during dusk leaning against one of the windows.
It is estimated that some 200 tourists a week visit the hotel - situated at an altitude of 1,400 meters - attracted by the building’s architecture and macabre history.
The previous owner, Michalis Ioannides, a descendant of the Kokkalos family, which owned the hotel for three generations, had issued various warnings to sightseers to stay away as the crumbling estate posed a danger to visitors who did not know their way around.
“You just can’t keep people away. They flock from all over the place, intrigued by the hotels’ rich history. Imagine if the hotel was still operational,” said Ioannides in a previous interview to local journalists.
Ioannides had reportedly tried to bring investors aboard to revive the historic hotel. However, as efforts failed, the estate found its way into the hands of BOC.
As things stand, the Berengaria does not seem poised to rediscover its former glory as a classic-style mountain hotel in the Troodos mountains, as it is expected the estate will be sold at a lower price, and the new owner will probably tear it down and erect a new development in its place.
The main building has an area of 4,500 sqm and consists of 80 rooms in two wings. In the eastern part of the block there is a 60year-old guesthouse with an area of 280 sqm on the northeast side there is a café-bar area of 200 sqm and an outdoor pool.
Hellenic deal in Paphos
In another deal that has already gone through, Hellenic Bank said that its recoveries subsidiary APS Debt Servicing Cyprus, Real Estate Division, has sold a prime plot in Kato Paphos for a cool EUR 12.5 mln to Constantinou Bros Hotels Group.
The plot, a field of 125,000 sq.m., lies on the northern side of Poseidonos Avenue, literally across the street from Constantinou’s other properties, the 5-star Athena, the Pioneer Beach and Athena Royal Beach hotels, and the boutique 5-star Asimina Suites. In the back, it leads all the way to the Spyrou Kyprianou main road parallel to the coastal road, connecting Yeroskipou with Paphos.
The plot enjoys a building coefficient of up to two floors for hotels, resort and housing, with a 225m frontage onto Poseidonos Avenue and lies 220 meters from the sea.