Struggling Apavou Group faces sale of four hotels in Mauritius
Some 500 employees of these hotels of the Apavou Group find their future at stake following the adverse developments since the end of 2013. (Image: Company Website)
Mauritian hotel group Apavou appears to have been hit hard by the downturn in the hospitality sector last year, and is faced with the sale of four hotels, including the prime property of La Plantation at Balaclava.
The decision to implement the procedure of ‘Sale by Tender’ of the four hotels was taken after a first attempt of rescue.
Some 500 employees of these hotels of the Apavou Group find their future at stake following the adverse developments since the end of 2013.
The four properties with a total of 686 rooms cover the La Plantation at Balaclava with 271 rooms, Indian Resort and Spa with 170 rooms, Mornea at 145 rooms, and the Moreva with a hundred rooms.
The responsibility of assuming the receiver and manager’s responsibilities of these hotels fell on Grant Thornton’s Satar Hajee Abdoula and Yuvraj Thacoor respectively since the start of 2012, following a motion of complaint presented by Bank One in the Supreme Court.
Sattar Hajee Abdoula, a partner at global accountancy firm Grant Thornton, has put in motion the process of putting up the four establishments of the group for sale.
Potential buyers, whether from Mauritius or abroad, will be informed through notices published in local and international press, such as the Financial Times of London, about the deadline for the submission of offers, which stands fixed at January 30.
With reservations till the end of the year, the receivers and managers had tried to salvage operations at these establishments, involving 500 direct jobs.
However, based on actual performance and forecasts for the coming months, the results achieved are not convincing. Apavou’s debt stood at Rs 4 billion last year and it is unable to assure the servicing of its loans.
Founded over 30 years ago, the Apavou Group started as a realty firm at Reunion Island. During the last 15 years, a natural evolution has brought the group into the hospitality industry.
The Apavou Group has more than 2000 employees and is now present in two of the major sectors of the development of Reunion Island and Mauritius.
Offering living and leisure spaces has now become its core business. It has built as many as 15000 lodgings, owns and manages the rental of 3000 housings and 115000 square meters of business properties such as offices, shops, industrial and tourist premises.
Source: Company Website