Majorca. The unfinished Convention Centre Hotel is up for auction with a starting price of 40.5 million euros, Palma City Council announced this week.
Julio Martinez, spokesman for the council explained that there are nonetheless a few clauses potential buyers must agree too.
One of them is that the eventual buyer must rent and manage the convention centre for 20 years.
Whoever wins the bid to run the centre also has to agree to annually bring at least 65'000 congress delegates to the island after the fifth year.
This hotel has been designed by a prestigious top class local architect and is key to the modernisation and renovation of the city of Palma, Martinez under lined.
The council announced that this decision to auction the concession of the convention centre implied a few important technical modifications.
The land where the centre is located is now set to become a heritage site, the sale of the hotel is out of the auction deal, as well as the building site and or anything that might be built on it.
The highest bidder will sign a ten year contract, renewable for a further ten.
Martinez added that to the starting bid price of 40.5 million euros, there will also be a rental charge for the duration of the deal: 100'000 euros for the first year, 200'000 in the second, 300'000 in the third, 400'000 in the fourth, and 700'000 from the fifth until the twentieth.
The council said renovation work on the centre is due to start in November and last for a year.
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