Sale of Llandudno promenade hotel completed with major investment now planned
The buyer for one of Llandudno’s largest seafront hotels has been revealed – with a major investment in the site now planned.
The Queens Hotel has been closed since March 2020 after falling into administration following the collapse of Northern Powerhouse Developments (NPD), run by Gavin Woodhouse. He is currently under investigation by the Serious Fraud Office.
The hotel was one of four North Wales sites forming part of the NPD group – alongside Llandudno Bay and Belmont in Llandudno and Caer Rhun Hall in the Conwy Valley.
To fund the program, people invested in 125-year leases on individual rooms in hotels.
Attempts to sell the sites had been complicated by these leases attached to individual rooms in the hotels, but last year Everbright Hotels bought the Belmont and Llandudno Bay as part of a deal with Kroll administrators. The Belmont has now reopened.
The Queens Hotel was due to be auctioned by Allsop last month with a guide price of £200,000-£250,000 along with the Queens Lodge (guide price £50,000-£100,000), but sold before this auction .
Now Everbright has been confirmed as the buyer.
They say a major investment will now take place.
Tenants have the option to waive their leases but at a fraction of their initial investment with NPD – or can keep the lease.
The Queens Hotel Leaseholders Committee (QHLC), a group set up to try to resolve the situation with the hotel and lodge, has warned that maintaining leases could result in additional costs for tenants.
Recent correspondence has indicated that maintaining the lease could mean that the tenant is charged for significant expenses to restore the rooms to a condition that means they can be rented out, because the hotel is in poor condition. He also said it could be years before a return on investment is realized.
A tenant who decided not to sell his lease said damage to rooms should be covered by insurance.
They also think the site was sold “too cheap”.
A QHLC spokesperson said: ‘We formed the QHLC in September 2021 with a view to finding the best solution to a hotel and lodge situation which had been under administration for over two years since the Woodhouse Companies collapsed .
“We represented 59 out of 65 tenants and kept them informed of our findings at all times. When a lease offer was made in January 2022, it was made to all tenants, with the majority accepting the offer.
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“The vote to accept the offer was majority but everyone was free to reject the offer.
“Most tenants are relieved and grateful to finally have an exit.”
QHLC added that the decision to accept or decline an individual lease offer is up to each tenant.
A spokesperson for Everbright Hotels said: “Everbright Hotels is pleased to confirm the acquisition of Queens Hotel and Queens Lodge Llandudno. Our first priority will be to provide tenants who wish to relinquish their leases with an early opportunity to realize some value.
“We will also carefully review structural reports before preparing a full planning application outlining our proposals for investment in these buildings, which will see them become landmark and iconic locations for Llandudno and North Wales with a target date. opening scheduled for early 2025.”
Kroll was asked to comment.