The three-star Hotel Balaton in Zalaegerszeg has gone under liquidation and closed due to unpaid debts, the regional daily Zalai Hírlap said.
Around 40 jobs were lost as a result of the hotel closure.
Zalaegerszeg mayor Endre Gyimesi (Fidesz) told the paper that accommodation capacity in the city was insufficient even including Hotel Balaton, especially in the three-star-to-four-star category. Gyimesi said the hotel's manager had told him that the hotel had been fully booked for a long period and there were also plans to renovate it.
Semira Spa, which operated the hotel and the wellness section, accumulated major debts with the water utility company Zalavíz, and owes a major amount to the electricity supplier as well.
Bookings have fallen by 25%-28% recently in Zalaegerszeg, and plant closures have led to a decline in business tourism, the paper said. (MTI – Econews)