LM Legal Services Blog

5% of the newly built hotels will become ‘dead zone’ within 10 years – abandoned hotels with stolen windows, doors and tiles, hanging cables and no roofs, according to analysts.

At the moment 20% of the hotels in Bulgaria are closed and at least 5% of them are not viable from a business point of view in terms of position, size, materials and type. If these hotels are not restructured within the next few months, one year the most, they will continue incurring loss.

Experts say that the solutions for such kind of hotels is to turn them into hospitals, hospices, old people homes and even jails, children’s camps, business centres or apartment buildings and to sell them. Still it is early to say that there is such kind of tendency in Bulgaria. At the moment there are more than 700 hotels and apartment complexes for sale in the whole of the country.

This negative tendency will affect a great part of the many apartment  complexes in the next three years.  Some analysts think that a possible solution to the problem is to introduce the necessary legislation which will allow timeshare in Bulgaria. The purchase of a holiday home or apartment is not profitable at the moment because of the high prices and the fact that it is usually used for about a month per year, according to experts.