Clients of The Nordic Consulting who are members of resorts run by Excel Hotels & Resorts SL are receiving dubious “offers” by companies including Viking Real Estate & Consultants and “Global Great Hotels”. In particular, owners in two different resorts: i) Beverly Hills Club (“The Suites”) and ii) Palm Beach Club have reported their concerns.
Who is behind these offers? It is clear that all three are in the same bed. Viking is “celebrating” their collaboration with Global Great Hotels which in turn has been described as “part of Excel”.
What is the offer?
The “offer” is basically bait to tempt owners to come to Tenerife and spend more money as they try to get out of previous bad investments. This is a business model that unscrupulous resort company Silverpoint used for many years.
Regarding properties in Beverly Hills Club (The Suites) owners have been offered “a maximum of 40%” of the purchase price of their property, but we have not seen a serious cash offer to buy the property on the spot! Rather once they are in Tenerife, owners are told that the offer is valid only if they invest more money in holiday products.
One owner tells us that Excel Hotels and Resorts offered them €17.000 now, plus five annual instalments of €10.000 to buy her property. It appears that the hotel wants to give the owner a reduced price, and pay them out of the rental income from their own property! Needless to say, this owner didn´t accept and neither should you.
In order to give credibility to the offers of cash Viking is emailing out an extract from their own website implying that €500.000 has already been paid out. This article is lacking on supporting evidence and we are yet to hear of anyone being paid out money “with no strings attached.” We post a copy of this article below:
What should you do?
Remember, Excel is the company that is running many of their resorts very badly, not paying owners on time, if at all. They have failed to provide full accounting and management information for company and property owners. This has driven down prices for Excel or related companies to now buy up the resort assets cheaply. Many owners are very angry to learn that it seems the resort management company that “doesn’t have money to pay them” would suddenly claim to have the cash to buy up the resorts.
So why are these companies now trying to persuade owners to give up their credits in the Silverpoint liquidation and instead sell their properties and holiday weeks? Could it be that this will let them keep renting these units out for their own benefit, without the court blocking their use?
We have also heard that clients are being told not to seek legal advice regarding these offers. This is another reason why this offer is clearly not credible, and owners run the risk of coming to Tenerife and being tricked again.
How should you reply?
Do not reply! Or simply say that you are not open to any offers.
Remember you have better options…
Property owners (Beverly Hills Club): You can sell your property now to serious investors for cash. Or you can wait until your rental contract expires and achieve an even higher price. If you want to be free of the rental contract without waiting so long you will be interested to know that we have already helped some owners get out of the contract by going to court.
Company participation owners: If you own a company participation we recommend that you accept the Silverpoint bankruptcy administrator’s offer to award you a credit for your purchase. Our clients in this process are currently waiting for judicial confirmation of this from the court.
Company full ownerships (Palm Beach Club): Our advisors and lawyers have developed a more profitable plan for company owners than simply doing nothing or selling their companies for a silly low price. For more information on this please contact us.