From €3.41 million to just over €455,000 as the minimum bid.
That is the figure that immediately stands out in the latest sale process involving the former President Hotel Terme in Salice Terme, in the Oltrepò Pavese area of Lombardy.
Yet it is also the figure most likely to be misinterpreted.
In a distressed hospitality transaction, the acquisition price of the property may ultimately prove to be one of the least significant components of the overall investment.
The real question is different:
how much capital would actually be required to transform a large, non-operational hotel and thermal complex into a competitive hospitality product capable of generating sustainable EBITDA?
That is the question any investor should address before considering an acquisition.
The new sale process
The property, located at Via Don Lorenzo Perosi 5 in Godiasco Salice Terme, in the province of Pavia, is returning to the market as part of real estate enforcement proceeding no. 461/2021 before the Court of Pavia.
The next sale is scheduled for 19 January 2027.
The main financial parameters are:
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reserve price: €606,906.74;
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minimum bid: €455,180.06;
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minimum bid increment: €5,000.
The hotel operation has been discontinued for several years and the entire complex requires a completely new assessment from a real estate, hospitality and industrial perspective.
Investment case at a glance
Asset: former President Hotel Terme
Location: Salice Terme – Godiasco Salice Terme, Pavia
Type: hotel + thermal facilities + wellness + F&B + conference space
Reserve price: €606,906.74
Minimum bid: €455,180.06
Overall site area: approximately 11,400 sqm
Rooms in the main section: approximately 82
Additional rooms in the original building: approximately 34
Further authorised but unfinished rooms: approximately 17
Current status: non-operational / requiring redevelopment
Strategic feature: thermal and wellness component
Key issues: CAPEX, plant and systems condition, permits, thermal concessions, future positioning and project economics
The true value of the investment therefore cannot be assessed by looking at the purchase price alone.
From a €3.41 million reserve price to €606,000
The progressive reduction in the reserve price is significant.
The sale history shows:
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June 2024: €3,410,000;
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January 2025: €2,557,500;
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May 2025: €1,918,125;
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November 2025: €1,438,593.75;
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March 2026: €1,078,945.31;
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July 2026: €809,208.98;
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January 2027: €606,906.74.
Compared with the first known reserve price, the reduction therefore exceeds 82%.
That is a substantial repricing.
It would nevertheless be misleading to conclude that the asset has automatically lost more than 80% of its economic value.
Judicial sales do not necessarily measure the future operating value of a hotel.
They measure the price at which, at a specific point in time and within a specific legal process, the market is prepared—or not prepared—to enter the transaction.
These are two very different concepts.
At InvestimentiAlberghieri.it, we regularly analyse this distinction: real estate price, hotel enterprise value and total investment value do not necessarily coincide.
This is not simply a hotel waiting to reopen
The former President Hotel Terme is a complex asset.
Available documentation describes a multi-level property including:
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guestrooms;
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restaurant facilities;
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bar;
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lounges and common areas;
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outdoor swimming pool;
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gardens;
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conference facilities;
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thermal facilities;
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wellness areas;
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unfinished or partially completed sections requiring redevelopment.
The main hotel section includes approximately 82 rooms.
The original building contains additional rooms, while further accommodation units appear to have been planned or authorised but remain incomplete.
Other parts of the property also require significant works.
For this reason, the most obvious metric—the traditional price per key—would be of limited analytical value.
Before using such a benchmark, an investor would first need to determine how many rooms it actually makes sense to retain, how many additional units should be developed, which hotel category should be targeted and what revenue mix the future property should pursue.
The real issue is Total Investment Cost
An investor could acquire the property for around €455,000 and subsequently face an investment several times greater than the entry price.
The correct analysis should therefore begin with Total Investment Cost.
Acquisition Cost
Purchase price, taxes, procedural costs, advisory fees, due diligence and closing expenses.
CAPEX
Guestrooms, bathrooms, MEP systems, façades, roofing, common areas, F&B facilities, wellness areas, thermal facilities, fire safety, energy efficiency, lifts, FF&E and technology.
Development Cost
Completion of unfinished areas and reconfiguration of the property in line with the selected concept.
Pre-opening
Recruitment, training, IT systems, distribution, marketing, commercial launch and team build-up.
Working Capital
Liquidity required to support the ramp-up phase until the property reaches operational stabilisation.
Financing Cost
Interest, fees, cost of capital, potential bridge financing and overall debt structure.
This is the same analytical approach applied by Investhotel and in the advisory work carried out by Hotel Management Group.
The purchase price of the property is not the cost of the investment.
The thermal component could create value. But it must be verified
What genuinely differentiates this asset from many other distressed hospitality opportunities is the presence of thermal and wellness facilities.
The available documentation refers to spaces dedicated to:
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thermal treatments;
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treatment rooms;
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consulting rooms;
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mud preparation;
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wellness facilities;
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gym;
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sauna;
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whirlpool;
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beauty treatments;
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indoor therapeutic pool.
Historically, the thermal component played an important role in the positioning of the property.
That is precisely where a significant part of the future upside may lie.
But it is also where one of the main risks may be concentrated.
Thermal concessions are a critical variable
Before building any business plan around thermal tourism, the administrative position of the water rights and any related mineral-water concessions would need to be examined in detail.
At a minimum, an investor should verify:
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ownership;
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validity;
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remaining duration;
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transferability;
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any concession fees;
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administrative obligations;
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actual availability of the thermal water;
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permitted medical and thermal uses;
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conditions required for reopening.
This issue could materially alter the economics of the entire investment.
Owning a property that contains a thermal facility does not automatically mean owning a thermal business that can be immediately reactivated.
What type of hotel would make sense today?
Another potential mistake would be simply attempting to recreate the President Hotel Terme of the past.
The market has changed.
Demand has changed.
The guest has changed.
The property should probably be rethought before it is refurbished.
Several formats could potentially be assessed.
Thermal & Wellness Resort
A resort strongly focused on thermal treatments, wellness, prevention, relaxation and short-stay programmes.
Medical Wellness & Longevity
A concept more closely oriented towards medical spa services, rehabilitation, longevity, nutrition, preventive healthcare and residential programmes.
Oltrepò Experience Resort
A hospitality product combining wellness, wine, gastronomy, local experiences and outdoor activities.
MICE & Corporate Retreat
The potential availability of conference space could support a positioning focused on corporate meetings, retreats, training and incentive travel.
Mixed-use Hospitality
The size of the complex could also support a reduced traditional hotel component combined with complementary uses, subject to planning, regulatory and economic feasibility.
The future configuration should therefore not be dictated by the existing building.
It should be the result of a market-led investment strategy.
The biggest risk: buying first and planning later
In transactions of this kind, a low acquisition price can encourage investors to reverse the correct sequence.
First they buy.
Then they try to work out what to do with the asset.
That is arguably the highest-risk approach.
The process should be exactly the opposite.
Before acquisition, an investor should develop:
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demand analysis;
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destination analysis;
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competitive set;
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concept;
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optimal sizing;
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room mix;
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revenue model;
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CAPEX plan;
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business plan;
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financing structure;
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operating scenario;
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exit strategy.
Only then should the maximum sustainable acquisition price be determined.
Not the other way around.
The true price of the former President Hotel Terme
The minimum bid of €455,180 is undoubtedly the most immediate figure.
But it may also be the least important one.
The investor should instead focus on a simple equation:
Acquisition + CAPEX + financing costs + pre-opening + working capital = Total Investment Cost
That total should then be tested against:
stabilised revenue + GOP + EBITDA + terminal asset value.
Only this relationship can determine whether the investment is genuinely value-accretive.
A potential turnaround, not a straightforward real estate acquisition
The former President Hotel Terme could represent an interesting opportunity for operators, family offices, real estate investors or capital providers specialising in hospitality value-add strategies.
But it should be analysed as a turnaround, not as a simple property acquisition.
The real project is not about buying a hotel for €455,000.
It is about determining whether a new hospitality product can be created that is capable of generating demand, operating margins and long-term asset value.
At Robertonecci.it, the topic of hotel value creation is consistently addressed from one fundamental principle:
a hotel is worth what its future operating business can sustainably generate in cash flow.
That principle is equally relevant in the Salice Terme case.
The repricing of the property creates an entry window.
But the opportunity only exists if the Total Investment Cost remains consistent with the prospective EBITDA and with the value of the asset once stabilised.
In summary
The minimum bid of approximately €455,000 makes the opportunity visible.
The thermal component makes it interesting.
The scale of the property makes it potentially transformational.
The CAPEX requirement makes it complex.
And it is precisely the interaction of these four variables that will determine whether the investment delivers a return—or fails to do so.
Analysis and advisory
InvestimentiAlberghieri.it, together with Investhotel, Hotel Management Group and Robertonecci.it, analyses hotel investments, distressed assets, turnaround opportunities, real estate value enhancement, business plans and repositioning strategies.
For confidential investment analysis and hotel transaction assessments:
info@investimentialberghieri.it
