PUERTO VALLARTA, Mexico – The owner of a well-known hotel in Puerto Vallarta has released a heartfelt public letter, revealing a long-standing legal battle and personal challenges that have culminated in the loss of the hotel property and significant financial distress. The letter, which has garnered widespread attention and sympathy, offers an unfiltered glimpse into the owner’s two-decade ordeal.
The hotel, purchased in 2002, has been the center of a contentious legal dispute that began with the terms of its sale. The owner disclosed that the transaction involved paying a portion of the purchase price via a German bank account to evade the seller’s tax responsibilities in Mexico. Complications arose when the seller, a German citizen and Mexico resident, ceased providing tax-deductible receipts, known as facturas, after the first year of payments.
This refusal forced the owner into a precarious position, having to pay with unreported cash income to the hotel to meet the mortgage obligations. Attempts to renegotiate or report the seller to Mexican tax authorities (SAT) were unsuccessful, leading to the seller filing a lawsuit for non-payment in 2005. Despite hiring multiple attorneys and enduring years of legal proceedings, a lien was placed on the hotel property around 2016.
The owner detailed the immense personal toll this battle has taken, citing stress, worry, and humiliation as constant companions over the years. The decision to keep the lawsuit private was motivated by a desire to protect staff from job insecurity and to shield the hotel’s reputation from the rampant rumors and false stories prevalent in the community, especially with the rise of social media.
The public letter also expressed the owner’s deep sense of failure and guilt, particularly towards the hotel’s staff, some of whom have been employed since the hotel’s inception. The financial strain from the ongoing legal issues and the impact of the COVID-19 pandemic, during which the owner continued to pay staff despite little or no income, has left the owner with considerable debt and no means to continue operating the hotel.
In a bid to support the loyal employees, the owner has instructed the hotel manager to sell all equipment and furnishings, as well as the owner’s car, to provide severance pay. With 24 employees, the estimated severance pay totals over $130,000 USD. Despite the owner’s personal financial and health issues, a plan is being developed to ensure staff receive their full entitlements.
The letter concludes with a poignant request for privacy, as the owner plans to step away from public life and Puerto Vallarta. The owner expressed profound gratitude for the love and support received over the years but emphasized that there is nothing more anyone can do to help at this stage.
This candid revelation has struck a chord with the community, highlighting the complexities and emotional toll of legal disputes and the often unseen struggles of business owners. The hotel’s legacy in Puerto Vallarta remains, but its future now lies in the balance as the owner seeks to wind down operations and support the staff who have been a vital part of its story.
PUERTO VALLARTA, Mexico – The owner of a well-known hotel in Puerto Vallarta has released a heartfelt public letter, revealing a long-standing legal battle and personal challenges that have culminated in the loss of the hotel property and significant financial distress. The letter, which has garnered widespread attention and sympathy, offers an unfiltered glimpse into the owner's two-decade ordeal.
