The buyer of one of Llandudno’s biggest seafront hotels has been revealed - with a major investment in the site now planned.
The Queens Hotel has been closed since March 2020 after earlier falling into administration following the collapse of Northern Powerhouse Developments(NPD), run by Gavin Woodhouse. He is now being investigated by the Serious Fraud Office.
The hotel was one of four North Wales sites that were part of the NPD group - alongside Llandudno Bay and Belmont in Llandudno and Caer Rhun Hall in the Conwy Valley.
To fund the scheme people invested in 125 year leases on individual rooms at the hotels.
Attempts to sell the sites had been complicated by these leases attached to individual rooms at the hotels but last year Everbright Hotels bought the Belmont and Llandudno Bay in a deal with administrators Kroll. The Belmont has now reopened.
The Queens Hotel was due to be auctioned by Allsop last month with a guide price of £200K to £250K along with the Queens Lodge (guide price £50k - £100k) but was sold ahead of that auction.
Now Everbright has been confirmed as the buyer.
They say a major investment will now take place.
Leaseholders have the option to relinquish their leases but at a fraction of their original investment with NPD - or can retain the lease.
The Queens Hotel Leaseholders Committee (QHLC), a group set up to try and resolve the situation with the hotel and lodge, warned keeping the leases could mean extra costs for leaseholders.
Recent correspondence has stated that retaining the lease could mean the leaseholder is billed for significant expenditure to bring rooms up to a condition that means they can be let, as the hotel is in a poor condition. It also stated that it could be years before any return is made on the room investment.
A leaseholder who has decided not to sell their lease claimed any damage to rooms should be covered by insurance.
They also believe the site has been sold "too cheaply".
A spokesman for the QHLC said: “We formed the QHLC in September 2021 with a view to finding the best solution to a situation of a hotel and lodge that had been in administration for over two years since the collapse of the Woodhouse companies.
"We represented 59 out of 65 leaseholders and kept them updated with our findings at all times. When an offer for the leases was made in January 2022, it was put to all leaseholders with the majority accepting the offer.
“The vote to accept the offer was by a majority but everyone was at liberty to reject the offer.
“Most leaseholders are relieved and grateful to finally have an exit.”
QHLC added that the decision to accept or decline an offer for an individual lease remained with each leaseholder.
An Everbright Hotels spokesman said: “Everbright Hotels are pleased to confirm acquisition of Queens Hotel and Queens Lodge Llandudno. Our first priority will be to provide leaseholders who wish to relinquish their leases an early opportunity to realise some value.
“We shall also be carefully reviewing structural reports before working up full a full planning application outlining our proposals to invest in these buildings which will result in them becoming leading, iconic venues for Llandudno and North Wales with an expected opening date of early 2025.”
Kroll has been asked to comment.
