Llandudno hotel once owned by Gavin Woodhouse has been sold out of administration

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A hotel on Llandudno seafront has been sold out of administration.

Gavin Woodhouse’s company Northern Powehouse Development (NPD) saw its hotels in Llandudno and the Conwy Valley go into the hands of administrators Duff & Phelps in the summer of 2019.

The Llandudno Bay Hotel, Queens Hotel and The Belmont Hotel in Llandudno and Caer Rhun Hall near Ty’n-y-Groes had initially continued to trade in administration but shut last year when the pandemic hit.

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Now a deal has been done for the 61-bedroom Llandudno Bay Hotel with sale agreements on other sites looking imminent.

The sales had been complicated due to the leases held on the sites by investors in the Gavin Woodhouse business.

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The Serious Fraud Office (SFO) is investigating suspected fraud and money laundering in relation to the conduct of business by Gavin Woodhouse and individuals and companies associated with him.

But now it looks hopeful that these key sites in the resort will start to reopen in the coming months.

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North Wales Live had been told a deal had been done on Llandudno Bay and this has been confirmed in an administrator’s report by Kroll Advisory, who have taken over the administration, for the Belmont. It states that Llandudno Bay has been sold.

It says Mysing, which was the main creditor and held the charge over the hotel site, has received £351,000 from the sale of Llandudno Bay. It had been on the market for £1.95m.

Belmont looks set to be next but administrators say that the venture has to initially be placed in creditor’s voluntary liquidation.

(Image: Daily Post Wales)

This is because there are currently ‘buy-back’ agreements in place for leaseholders which guarantee the purchase of the existing leases for 125% of the original investment.

These can’t be disclaimed in administration but can once the company is liquidated.

The report states that claims from the investors in Belmont total over £543K while the total claims from all creditors is £3m.

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Administrators are also due to update progress on the sale of Queens Hotel.

It is understood the same investor is involved with buying all the sites but this has not been formally confirmed.

Kroll Advisory have been asked to comment.

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