A plan to increase the size of the Sea Pebbles Boutique Hotel on The Strand, Sliema, has been put on hold for the time being, as the owner assesses the impact of the COVID pandemic and the “current and anticipated tourism market trends” with a view to “maximise returns from the project”.
Sea Pebbles Ltd, which owns and operates the hotel, said that this would “enable it to meet the foreseen tourism market demands for the forthcoming years”.
The update was published by Sea Pebbles Group’s financing vehicle SP Finance plc, on the Malta Stock Exchange.
Situated atop the popular TexMex Bar & Grill outlet close to the border with Gżira, Sea Pebbles Boutique Hotel was envisioned to add another 150 rooms to the existing 52, bringing the total number to 202 rooms.
Construction was planned to take place during 2021 and 2022, with the company projecting the redeveloped hotel to be fully operational from 2024, as per the prospectus for a bond issue in 2019.
However, the pandemic put paid to those plans, with Planning Authority records showing that no development applications for the project have yet been submitted.
The extension would have consolidated Sea Pebbles Ltd’s holdings in the area, which include the neighbouring mixed use corner building overlying MEDASIA Fusion Lounge (which also forms part of Sea Pebbles Group), and a seven-storey block containing 17 guest rooms on Saint Agatha Street, which is at the back of the block in question.
The proceeds from the 2019 bond issue were partly used to acquire two apartments overlying the MEDASIA block and their relative airspace, giving Sea Pebbles Ltd full ownership of the site. They were also used to acquire a guesthouse on Saint Agatha Street, adjoining the company’s property.
Both these transactions were completed in early 2020, shortly before the onset of the COVID-19 pandemic that brought the tourism industry to a standstill.
Like other businesses involved in tourism, Sea Pebbles Group was hit hard by the pandemic, posting losses before tax of €358,000 in 2020 and €321,000 in 2021, before seeing a return to profitablity in 2022 with a profit before tax of €105,000.
Sea Pebbles Group is wholly owned by Joseph and Josephine Casha.
Mr and Ms Casha started the business back in 1980, when they rented out Pebbles Bar. They ventured into hospitality in 1988 through the development of a four-floor apart-hotel consisting of 16 rooms, and have continued growing their business by investing in the area ever since.
