2/06/2014 – Expansion
Once the economic recession had loomed, many hotel groups strived for re-negotiating their management contracts. Meliá Hotels International, the chain run by the Escarrers, was no exception. But what seemed a simple rearrangement has become a long legal dispute with the happy end for 17 establishments of old owners of Tryp: Rufino Calero, Antonio Briones and the hiers of Max Mazin.
Another firm belonging to the same owners, Equity Inmuebles, agreed on the current contract termination in 2022, instead of initially set 2064 and without a renovation option.
In turn, Meliá will receive compensation deferred between 2013 and 2017 and return the property in the same condition as it took it over, apart from damage proceeding from habitual use. The hotel chain will intend 2.5% of its gross expenditures for maintenance of the hotels between 2019 and 2022.
The asset portfolio worth of over €124 million includes five Meliá hotels in Baqueira Beret, Madrid, Marbella, La Coruña and Chiclana de la Frontera, the ME in the Plaza de Santa Ana square (Meliá´s flagship in Madrid), three establishments of holiday brand Sol and eight Tryp hotels. Among these, three located on the Gran Vía street, the most prominent shopping artery of the Spanish capital. Until 2009, the Hotel Rex belonged to the list as well, offering 144 rooms and also situated on the Gran Vía.
The conflict dates back to 2000 when the Escarrers bought the Tryp chain from Calero, Briones and Mazin for €360 million. Meliá acquired a company which managed about 60 hotels, with the ownership of Tryp.
Meliá asked Equity Inmuebles for cutting in the rental amount but the group refused. Both parts went to the court and agreed upon earlier termination of the lease contract. Meliá allegedly will be replaced with the Vincci Hoteles.
Original article: Expansión (by Yovanna Blanco)
Translation: AURA REE