The Development Bank of Samoa (D.B.S.) is hoping to recoup $16.299 million tala from the sale of three hotels it put on public auction after they failed to pay off their outstanding debts. 

In a post on the State-owned bank's official Facebook page at 12.42pm on Thursday, the D.B.S. management listed the prices of the three hotels, the size of the land area as well as the businesses' current features for potential customers' consideration. By 11pm on Thursday night (Samoa local time), there had already been 40 shares of the Facebook post. 

The D.B.S. has set the reserved price for three local hotels that were previously put up on auction with the highest price tag valued at more than $8 million. 

The highest price for the Orator Hotel at Ululoloa of $8,838,000 or best offer, the Facebook post by the D.B.S. management states. According to bank the Orator Hotel features 16 villa rooms, pools, bar, conference rooms and additional front vacant land. 

The Manumea Hotel at Vailima is next with a going price on the market for $4,910,000 or the best offer. As for the Vaea Hotel at Togafuafua its is $2,551,000 or best offer. 

The notice stated the Togafuafua hotel features a double storey building, located within the city area, pool included, close to all amenities and full fenced off. 

The owners of the properties were recently approached about the decision from D.B.S. and two of the hoteliers were shocked about the drastic actions taken by the institution. 

Prime Minister, Fiame Naomi Mata’afa said the hotels placed that were initially placed on public auction had “historical debts” with the bank institution and a hard decision had to be made. 

The financial situation faced by the local properties, according to Fiame, is beyond the control of the bank and the institution ultimately had to recover its money. 

Shed said the bank list of auctioned properties was an outstanding issue. 

“They [hotels] have been in trouble way before COVID,” she said, when responding to questions on the hotels being placed on public auction. 

“In all honesty with the D.B.S. it had a certain percentage allocated to different sectors like tourism and agriculture but if you can remember this bank was established to support agriculture. 

“What had happened is the allocation had been taken over by the tourism [industry] and it has come to the point where hotels have not paid their loans, not only has it impacted the sector it has also affected the whole reason why the bank was set up.” 

According to the Prime Minister, there was consideration given to recapitalising the properties in trouble, but given the degree of debt they are in the Government and the bank cannot afford to take on the debts. 

“The bank will be in trouble and all fails,” she said. “In finality a hard decision has to be made.”