Medicinal water spa of Carratraca is up for public auction

The famous Carratraca spa - a facility that witnessed the start of tourism in Malaga province - is up for auction. The lot consists of several facilities that form a package sold together: the mineral-medicinal water complex, the Villa Padierna Thermas de Carratraca hotel and the car park, among other annexed spaces. The appraised price of the lot is 3.4 million euros, although it is expected that the sale will exceed this figure due to investors' interest.

The call for bids will be open on the Viasubasta.com platform until 29 July.

The facilities, which are currently undergoing bankruptcy proceedings, have been closed since the pandemic crisis. The five-star resort specialises in health and wellness. The main facilities consist of two separate buildings: the hotel and the thermal baths, connected by a tunnel for the comfort and privacy of the guests. The accommodation has 44 rooms and suites, with a total of 81 beds. The spa has a capacity for 150 people, with thermal baths and pools, inhalations, massages, etc.

In addition to these, the following properties and land in Carratraca are also owned by the bankrupt entity and are therefore included in the package: a 100.50-square-metre house on Calle Baños; an urban plot of 635 square metres on calle Antonio Rioboo, 28; another plot (185.45 square metres) on the same street; and a rustic plot of 25,760 suqare metres in the Partido de La Vega del Acebuche-La Moraleda.

The insolvency proceedings have now reached the stage of liquidation of the assets. At present, bids can be placed in direct sale and, from there, they will be auctioned through the Viasubasta platform. The idea is to have "as many investors as possible in order to obtain the highest possible amount in the event of a sale".

According to sources, investors have already shown great interest. In order to participate, they must deposit almost 168,700 euros. Despite the insolvency proceedings, the bankrupt entity always has priority, which means that, if it manages to obtain financing and pay all creditors before the sale is formalise, it could still come out of the insolvency proceedings.

The hotel represented an investment of 18 million euros at the time (back in 2006-2007) and was seen as a great generator of luxury tourism in the interior of the country. It was managed by Ritz-Carlton, which offered personalised programmes combining accommodation, medical consultation, treatments, diets and activities. However, the Covid-19 health crisis hit the resort and caused its closure.

The completely restored hotel is located in the Hostal del Príncipe. The spa was created in the mid-19th century, when the thermal baths belonged to the Conde de Teba. Trinidad Grund - a key figure in the Malaga bourgeoisie of the 19th century - was one of the great promoters of this area, which made Carratraca one of the first tourist attractions in Spain. Its sulphurous waters are beneficial for the skin, rheumatism, the digestive system, the nervous system and bone lesions, among other ailments.

Carratraca mayor Marian Fernández has said that the town hall has tried to acquire the facilities, "but due to the spending rule it has been impossible". "We would have loved it, because it is a very important space for the town. It would give it a lot of life and generate employment. We have been trying to get it up and running for a long time." Fernández stated that the town hall will do everything it can to make sure that the facilities are put to use.

"The town hall is willing to collaborate, to give the necessary licences and to support any project that benefits the municipality," he said. "The town needs movement and getting this building up and running would be very beneficial. We are completely open to talk and see what can be done."