November 8th, 2011

Hungarian Development Bank calls in police over countryside wellness resort investment gone bad

In today’s second bit of bad news from the Hungarian hotel sector, state-owned development bank MFB has filed a police report over what it termed suspicious financial transactions by the bank’s previous management, including its financing of a troubled Ft 10 billion hotel and spa project in Egerszalók, east Hungary.

The MFB, which owns the Saliris Resort, said it had launched an internal inquiry primarily because the project was running years behind schedule and had huge cost overruns, while generating no revenues.

The bank also claims that the complex’s market value is now less than half of its initial value, which has caused billions of forints in losses to the state. []

  • Viking

    oops, I have been there
    It is a nice place actually
    I wonder where they got all their money from

  • Nigel Hancock

    I thought it was overpriced when I went there compared with the spa just down the road. I suppose they were trying to recoup the investment

  • Kung Foo Panda

    No wonder its empty, check out the nonsence gibberish in which they describe the hotel:

    “It is impossible to define the style of the Saliris Resort hotel and medicinal spa complex. When guests turn into the Thermal Valley from the village of Demjén or the city of Eger, in the mist of the salt hill they might think it a terraced building that is quite the opposite of the Hundertwasser riot of colours. However, the closer guests get, the more they sense the family atmosphere of happy peacetimes. The Saliris Resort deliberately does not follow current fashion trends since here the natural environment is the key to everything: in the interior areas materials in earthy colours exude elegance. That is true for example of the Pakistani salt tiles that lend the bar and reception a special atmosphere, the Makassar ebony that gives the public areas their air of distinction and elegance and the handmade unique wallpapers…”

    WTF! who’d want to go to that….

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