Doldrums Fuel Murky Online Sales of Hotels in Bulgaria

Business » PROPERTIES | January 6, 2012, Friday // 15:24| Views: | Comments: 0
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Bulgaria: Doldrums Fuel Murky Online Sales of Hotels in Bulgaria A mix of over-construction, a drop in tourists, prices and turnover have made it impossible for hoteliers to cover their debts. File photo by BGNES

Hundreds of hoteliers in Bulgaria have been forced to sell after failing to cope with the difficulties the crisis deepening brought, but some do it secretly on the internet, a check has shown.

A mix of over-construction, a drop in tourists, prices and turnover have made it impossible for hoteliers to cover their debts. In order to avoid missing out on interested tourists however many of them offer the hotels secretly for sale on the Internet.

In the ad they skip to mention the name of the complex not to scare away customers. In many cases the buildings are sold under the counter, so that their financial problems are kept secret.

The new fad exposes to risks the tourists who may end up with empty pockets and no holiday after booking a hotel that goes bankrupt.

Brokers who mediate the sales are instructed not to give too much information about the hotel, unless they smell great interest. They strictly follow the instructions lured by the lump commission fee that they will get if the deal is sealed.

Hoteliers resort to the secret online sales hoping to fetch a much higher price for the property than the one they would get at a public auction.

Meanwhile a check in the registry for public sales of the Bulgarian chamber of private enforcement agents shows that there are many other properties, whose sale -  prompted by unpaid mortgage – has been officially announced.

Just three years ago Bulgaria, a confident European Union new member, was celebrated as a property hotspot with healthy growth in all segments. These days frozen projects and bankrupt investors paint the gloomy picture of the big boom that became the big bust.

The supply of properties for sale is abundant on the Southern Black Sea coast, particularly at the resorts of Sveti Vlas, Sunny Beach, Ravda, Nessebar.

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