Plans have been filed to integrate the derelict Savoy Hotel, in Sliema, into a six-storey business centre, proposing the demolition of annexes and an adjoining garage previously used as a fuel station and the excavation of four levels of underground parking with an overlying public piazza at street level.

The building was sold by auction last September for €12.8 million to Exalco Group Ltd, which owns six large business centres in prime locations across Malta.

The former Savoy Hotel, with its multifaceted bay windows, is a landmark building at the top of Rue D’Argens. The hotel was such a landmark back in its heyday that the area is still known by that name today.

Despite its state of abandonment and home to illegal squatters, the building was granted Grade 2 protection status by the Planning Authority in 2018. A year later, it suffered further damage after rubbish dumped there caught fire.

The building was purchased by Almo Properties Ltd, one of the shareholders of the building. Almo Properties is already the owner of 79.778 per cent of the property. Sources said that although the winning bid price was €12.8 million, only 20.222 per cent of the amount will actually be paid by the winning bidder ‒ €2.6 million.

There were two other bidders: Schembri & Sons Ltd, that owns a 15.556 per cent stake, and Ray Zammit.

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

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

The planning application was filed by Exalco Properties Ltd’s Jean Marc Montanaro who, through plans prepared by CVC Architecture, is seeking permission to change its use from a hotel to a cafeteria at ground floor level and a business centre.

Planned works include the restoration and alterations to the existing dilapidated Savoy Hotel main building, the demolition of the derelict annex building and demolition of the disused fuel station within the same site.

It is proposing to excavate the site under the vacant land and the construction of an extension consisting of four basement parking levels and six overlying office floors, two of which are receded floors.

Plans also include the redevelopment of the front garden area into a pedestrianised terraced piazza with soft and hard landscaping and will include the restoration of the existing original boundary wall and gates.

The Superintendence for Cultural Heritage and the Environment and Resources Authority have both requested additional documentation before expressing their opinion on the proposed project.