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Hotels in Plovdiv, Sofia and by the sea go bankrupt

© BNT

More and more hoteliers in the country are ending their activities, closing and announcing their sites for sale. Among the main reasons for closing the business, the industry points to the covid crisis and unaffordable costs, including high electricity bills.

In 2021, almost 80% of the places in the hotels in Plovdiv were not used. And in order not to accumulate new losses, many hoteliers closed their businesses. Thus, in just one year, 28 accommodation places in Plovdiv have been announced for sale, most of them in the central part of the city.

The trend is to increase the number of hotels for sale at the expense of those that will eventually be purchased. A hotel is a huge investment, you have seen in recent months what is happening. This gallop of electricity and natural gas, over 300% is already growing, which dooms many people to bankruptcy. The situation began to escalate. The situation is really catastrophic, said Enyo Enev, chairman of the Association of Hotel and Restaurant Owners in Plovdiv.

Most hotels are sold through real estate agencies. According to brokers, interest in them is minimal and this forces owners to lower prices.

In the ads for sale we find this hotel in the very center of Plovdiv, whose owner was the late Kiril Rashkov or better known as Tsar Kiro. For many years, his family used the building as their home. Now it is sold with some of the furniture.

Nearly 50 hotels are offered in Sofia. In the region of Varna, another 40 sites are also looking for new owners. Although real deals are seldom made in the sea capital, there is interest in hotels there, mostly because of their good location.

Around the villa zones of Varna or say Golden Sands and the periphery, there is interest from customers who come to Varna from the interior to invest or are still looking for information to take their step, so the growth of these inquiries is really huge, said Petko Ivanov – broker.

Due to the crisis in the hotel industry, some investors do not hide that if they buy the property, they would change its purpose. Thus, some of the hotels can be turned into hospices or luxury residential buildings, writes BNT.

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