28 November 2017
The Chinese group Level Constellation has just acquired the Monte Palace Hotel, located on the Lagoa das Sete Cidades, on the island of São Miguel, in the Azores. The development is known as a ‘ghost’ hotel due to its state of abandonment since 1990; the hotel will be redeveloped by a group that has already invested more than 70 million euros in Portugal.
The iconic Monte Palace Hotel, which was abandoned a few months its inauguration in 1989, went on sale for 1.5 million euros in August of this year without any specific investors having declared an interest in the venture.
In a statement, the Chinese group did not give details regarding the amount of the transaction but said that the investment follows the previously announced diversification of the company’s investments in Portugal and its incursion into the tourism sector.
Level Constellation is a real estate developer founded in 2014 by six Chinese entrepreneurs, which invested in the Portuguese real estate sector through the Park Avenue, Ouro Grand and off Liberdade developments, and which is preparing to launch the Classica on 40 Avenida da República, in Lisbon.
The Hotel Monte Palace’s structure has 14,000 sqm of construction area, complemented by a 50-hectare area of natural vegetation, consisting mainly of Japanese cedars. The hotel’s stunning views of the Lagoa das Sete Cidades, one of the most recognisable features of the Azores archipelago, give the development a level of international notoriety.
The hotel has been abandoned since 1990, the same year it won the Best Hotel of the Year award in Portugal.
“Level Constellation intends to develop a benchmark project for the asset, which it is already in development,” the group said in a statement.
Original Story: Diário Imobiliário
Translation: Richard Turner