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Almost 30 debt-crippled hotels up for sale

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The COVID-19  pandemic and the 16-month border restrictions imposed since March last year have no doubt badly impacted the hospitality industry.

These businesses have not been able to stay afloat and no cashflow has reportedly forced almost 30 owners to put up their hotels for sale.

Casualties are mostly three-star to five-star rated resorts located along the coasts of Trou-D’Eau-Douce, Mont Choisy and Grand Baie among others.

Experts say business plans of hotel owners collapsed due to the resurgence of the COVID-19 pandemic in 2021.

Many hotels owners expected the tourism industry to recover after the first wave. However, the second wave starting in April pushed them into difficulties, forcing many to put their properties up for sale because they could not survive with no guests.

Many small ones are on the verge of bankruptcy, while some others managed to keep afloat by becoming quarantine facilities.

Despite interest shown by investors, few deals have reportedly been done.

Real Estate specialists say there is a slight price expectations mismatch.

“Second, not all hotels that are for sale are truly investment grade and desirable to the investors. And, third, deals are being stalled because of the difficulty in mobilising teams to inspect the asset and conduct their due diligence.”

The Mauritius tourism sector had debt hitting almost Rs 55.9 billion by the end of August, according to latest figures released by the Bank of Mauritius.

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