Puerto de la Cruz Hotel Closure Leaves 41 Employees in Legal Limbo
The closure of the Magec Hotel in Puerto de la Cruz has left 41 employees in legal limbo and unable to claim unemployment benefits due to a bitter commercial dispute between the hotel's operator and its owner.
The closure of the Magec Hotel in Puerto de la Cruz has left 41 employees in a difficult position, trapped in a bureaucratic nightmare that prevents them from claiming unemployment benefits. As reported by El Día, the shutdown of the 180-room, four-star hotel marks the end of a 45-year history and the result of a bitter commercial dispute that has triggered a major labor crisis.
The conflict stems from the management of Dardania Eurogroup S.L., which had operated the hotel since 2019 following the insolvency of the owner, Cupido S.A. Their contract was set to run until December 31, 2025, with an agreement that the staff would be transferred back to the parent company at the end of that period. However, a breakdown in communication between the two companies has prevented an orderly transition. According to Dardania’s manager, Juan Pedro Escobar, multiple attempts to arrange the transfer were ignored, and Cupido S.A. ultimately refused to take back control of the hotel.
The situation has since devolved into a series of accusations. Dardania claims the closure was necessary because they could no longer afford to pay salaries after the lease ended. Meanwhile, the staff—backed by the UGT and Sindicalistas de Base unions—allege years of mismanagement. They point to unpaid wages from March, April, and May, as well as issues with social security contributions and stagnant salaries during Escobar’s seven-year tenure. Management denies these claims, insisting they made every possible financial effort to keep the hotel running.
This case highlights how vulnerable hotel staff can be during ownership disputes. When companies fail to agree on a clear transition plan, employees are often left in a legal limbo, unable to access the support they need. As Dardania Eurogroup and Cupido S.A. continue their legal battle, the 41 affected workers are still waiting for a resolution that will allow them to settle their employment status and receive their rightful benefits.