Hopes of seeing the once proud resort revived to its former glory are diminished as real estate analysts believe the property will be difficult to sell at auction.
The auctioneer declared the big-ticket sale a no-go despite some interest shown, no bidder was willing to match BoC starting price of €2.36 mln.
It seems the hotel’s history was not enough to attract the cash a Real Estate experts fear that demand for such properties just isn’t there.
George Mouskides, President of the Cyprus Land and Property Owners Organization (KSIA) and director of the Smart Fox Estate Agency, feels that buildings like the Berengaria have hidden cost.
“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,” Mouskides explained.
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.
“So, it is not so much the initial cost that may be putting off possible buyers, but the fear of hidden costs,” argued Mouskides who stressed that this is a risk that most investors are not willing to take on.
Once the most luxurious hotel in Cyprus, it was named in honour of Queen Berengaria, wife of Richard the Lionheart, who were married in Limassol.
The now derelict Berengaria, located at Prodromos in the Troodos mountains, will go under the hammer once more as the auction is to be repeated after a three-month respite. It will most probably keep the same price tag.
The once-famous Berengaria covers an area of 26,520 sq.m. 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 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 tourists to keep away as the derelict 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 mountain range, as it is expected that the estate could be sold at a lower price, and the new owner will probably tear it down and erect a new development in its place.
Another option is that investor could approach the Bank of Cypriot and do a deal that would bypass the auction option.
