Please read the full article at Publico, published September 29, 2014
Summary:
The Bom Sucesso Design Resort, Leisure & Golf, once hailed as one of Europe’s finest tourist developments, is currently facing insolvency. Originating as a PIN project during the Sócrates government, the 150-hectare luxury development near Óbidos lagoon transformed into a high-quality, internationally acclaimed project, anchored by a golf course and a proposed five-star Hilton hotel. However, the resort is now bankrupt, grappling with a complex shareholder structure and significant debt.
The project’s financial troubles stem from the housing market contraction during the economic crisis, leading to a plunge in home sales. The fall of BES, the primary financier, further accelerated the resort’s financial decline. The shareholder structure involves a closed-end real estate fund, Concordo Óbidos SA, Bom Sucesso SGPS, and other entities, all facing insolvency.
Despite bankruptcy, efforts are being made to salvage the golf course, seen as crucial for maintaining the real estate value of the luxury homes surrounding it. The completion of the Hilton hotel, currently suspended, could provide a significant boost to the project.
Various entities, including Portugal Ventures and the Graça Moura family, are creditors seeking to recover investments. The Hilton Worldwide chain remains committed to expanding its presence in Portugal, but the completion of the Hilton Bom Sucesso Óbidos Resort is uncertain.
While the resort still presents a high-quality appearance, with security measures in place, a closer inspection reveals areas of halted construction and abandoned shipyards. The project’s completion is no longer the primary concern; instead, the focus is on saving the resort. The financial future of the Bom Sucesso resort remains uncertain, and the challenges faced by creditors and investors are intricate and multifaceted.