Alan Sugar has bid €3m for the hotel Byblos and facilities, purchasing three plots which make up the Mijas hotel, from Aifos who acquired it in 2005.
The hotel was auctioned off in a week of turmoil for Aifos, who applied for bankruptcy with debts of approximately €1 billion.
The Byblos Hotel has 144 rooms, 114 full time employees and Aifos claims to have put €40m into the hotel and refurbishments when they purchased it at the end of 2005. That money was loaned to them by the Bank of Scotland, but because Aifos failed to meet the payments the property was put up for auction, with a value quoted in the Official State Bulletin of 39.6 million €.
This is a further indication of the availabilty of cheap Spanish property and will lead to more big players snapping up undervalued assets in the region.