There have been significant developments at the Londa Hotel in Limassol in recent days, as shareholders appear to have paid off the debt owner Serendipity Limited owes to Bank of Cyprus.
Insider reported back in July that negotiations were ongoing but now they have reached the point where a deal has been signed. Investors under Elements Capital Management have paid off whatever debt was in balance and got rid of mortgages.
These investors will obviously have a serious stake in the shareholding structure of the owner company and the Paraskevaides family could possibly also remain a shareholder. However, shareholding percentages of all involved are not clarified at this point.
As for the popular five-star hotel’s plan for the immediate future insiders believe it will continue to operate as it does now. But all possible options will be reviewed in the future. Londa – one of the best known boutique hotels on Limassol’s seafront – has 68 rooms managed by Columbia Hotels & Resorts.
Investment interest in the hotel was rising over recent months. This is essentially yet another restructuring of a business loan that Bank of Cyprus has succeeded in recent years. Just like other commercial banks in Cyprus, BoC has managed to put new investors in the equity structure of yet another hotel business.
Investment in luxury beachfront hotels in Limassol in recent years has seen significant mobility with equity changes taking place in giants such as the former Le Meridien and Amathus Hotel. These changes resulted in significant additional investment in renovation and expansion of existing units. Not to mention the erection of new units that offer hotel services to their tenants.
By Antonis Antoniou