Just a few years ago, Goldman Sachs stated its ambition to create a Greece hotel brand, which can be expanded by many Mediterranean points.
The Wall Street giant bought three sea resorts in Northern Greece in 2022, with plans to change them and begin to welcome visitors this year. However, as points in Wall Street Journal, discuss the source of the knowledge of the agreement, and the OT has been written In the spring Goldman suddenly sold three hotels, marginally exceeded 100 million euros (about $ 117 million) invested in the project. Defined with the same sources that the investment bank stops its plans is a hotel brand in place. Resorts have not been opened and some employees who work on investment will never work in the company.
Greek media describes the agreement as a “drowning”, WSJ stresses.
‘Iconic’ Investment
While investment is small for Goldman Pirects’ Assets Department, it indicates its desire for large returns to overwhelm useful but unstable businesses on Wall Street. Its purpose in Greece is to use most customer money and funds to increase the value of hotels and then record large profits when they are sold. At this time, Goldman receives management fees from customers invested in cash.
According to the WSJ, if resorts purchased, Goldman is absorbed by the enhanced country economy, accepting foreign real estate investments compared to western Europe. Many Greece hotels are also family – friend and given to new generations more openly sold.
Other companies also invest in the country, including successful investment in Blackstone in hotel investment partners, with portfolio with about 10 in Greece. Goldman decides that the Mediterranean adventure begins with Greece.
The Grand Resort in Lagonissi
The WSJ also wrote that the company continues to find for more hotel claims and even though it is considered a claim to claim Grand Resort Lagonissi, but does not continue with effort. Last summer, Goldman President John Waddron visited Greece and met with the Prime Minister of the Prime Minister of the country and heads of local banks. His message is clear: Goldman invests in the importance of the country, by investing in investment in it and by handling assets. But so far, Goldman’s investment in hotels began to decrease. Renovations require a powerful work expense more than the company expects.
Delayed and off -budget
Goldman plans to demolish and rebuild hotels, located in northern Halkidiki Peninsula, before they can be able to get their doors.
Employees in London company and Spain work to invest from opposite ends of Europe, led by a mate mate. The bank decided to place its own management team to prevent change, instead of hiring a company with the hotel sector experience, as others do.
No Goldman has to beat Goldman to easily overcome obstacles to build work. He created a Greece host platform called “component”, which means, to guard resorts and help find new investments in hotels. It has about 10 athens employees, including many with important hotel industry experience.
About a year after starting Goldman investment, the delay of licenses, building and engineering began to worry.
Goldman knows it takes more time and money to complete the project. The original plan is investment between 150 and 200 million euros. The cost of building materials and work increases, reduced the expected investment produce.
At one point, Goldman and a construction company he has worked for separating their ways, WSJ wrote that Goldman has a preliminary discussion about a local workmate. Around the last fall, Goldman started exploring a sale.
The Company sells Spring Hotels in Sani / Ikos group, a private company owner and runs Greece and Spain hotels.
Eventually, Goldman decided to fully stop investing in hotels in the country, except to share minority sharing with producing real estate investments.
Checking Investing Portfolio
Goldman says he checks his disinfection if it is interested in his customers. “We are active to handle all our investments, keeping business discipline strong and increased amounts,” as a spokesman.
Bank investment company and Greece asset management remains unchanged.
The new hotel owner announced more than 400 million euros in the project. Properties have almost 750 rooms, many swimming pools, more than 30 restaurants and bars, theaters and spas.
Hotels are set to open in 2029.