El Palace Hotel Barcelona Declares Insolvency

1/04/2014 – Expansion

The Hotel Palace Barcelona, known as the old Ritz Hotel, has been declared bankrupt, just as two other properties of the Husa Group. The hotel chain run by Joan Gaspart declared its branch Hostelería Unida insolvent in February this year. The group has also pre-arranged insolvency process for two other branches: Banquetes Reunidos and Hostelería Unida Dos. Now they will be joined by Inmobiliaria Sarasate that manages the Hotel Palace Barcelona.

The establishment (…) has always been the crown jewel of the group. The property was sold in 2011 for €68 million and since then Husa has occupied it as a tenant.

According to sources with knowledge of the matter, between 70% and 80% of the group has received an impact of the bankrupcy. Hostelería Unida has got a €227 million debt, owed to the Social Security, suppliers (Vodafone, Unión Fenosa, Gas Natural, Telefónica, Heineken and UGT) and banks (Banco Sabadell, Popular, Deutsche Bank and Institut Català de Finances – ICF). If liabilities taken into account, the amount could rise up to €280 million.



Original article: Expansión (M. Anglés/S. Saborit)

Translation: AURA REE