A derelict hotel in Sliema that dates back to the 18th century is to be sold at auction, with an asking price of €2.8 million, following a court decree.

The former Savoy Hotel, with its multi-faceted bay windows, is a landmark building at the top of Rue D'Argens, that has been abandoned for years.

Following a legal dispute, the court ordered that it be auctioned after a minority owner failed to come to an agreement with Almo Properties and Exalco Group. 

The auction, first revealed by Newsbook, and Businessnow.mt will take place on September 13 at the court house in Valletta.

The once iconic building is now in a state of abandonment and has been vandalised over the years. Photo: Matthew Mirabelli

After acquiring the majority shareholding, Exalco Group had plans to develop the scheduled building but plans were delayed due to disagreements with minority co-owners. 

Previously, Alex Montanaro, CEO of Exalco Group told Times of Malta that the company wanted to preserve the old Savoy and do something which "Sliema and Gżira will be proud of".

The building includes a garden, yard and a garage.

The former Savoy Hotel is a Sliema landmark. Photo: Matthew Mirabelli

Despite the Sliema hotel being left in a state of abandonment for years and home to illegal squatters, in 2018 the building was granted Grade 2 protection status by the Planning Authority.

In 2019, it suffered further damage after rubbish dumped there caught fire.