Vila Real de Santo António council has launched a public tender for the repair and refurbishment of the iconic but crumbling, Hotel Guadiana.
The building already was classified as a municipal property of interest in 2010 and the council, having bought the property, wants it to be reopened as a hotel.
Mayor Luís Gomes said the operation "is part of the recovery strategy for the built heritage of the historic city centre to promote culture and quality tourism."
"In the case of the Guadiana Hotel, we will retain the interior and adapt it to the current needs of a five-star establishment, ending the degradation that the riverfront building has suffered," commented Gomes.
The plan as announced in February this year was for the council to contract the work, using funds from the Jessica Foundation, and then to lease the unit to a South African leisure company - Grand Africa.
Also in February it was reported that the contract for the hotel’s rebirth had already been won in an 'open competition' by a group of Portuguese businessmen who already had a contract with the Grand Africa company.
Today’s announcement of a new building tender means this deal now looks doubtful but the mayor insisted that "The contract with this South African hotel group is signed, and it delivered the required guarantees. So now, the Guadiana Hotel refurbishement process is irreversible."
This new contract specifies the maintenance of the facade and of the main decorative elements in the hotel designed by architect Ernesto Korrodi and built between 1918 and 1921.
After years of dereliction this proud building will be renewed in 2016 and the Algarve will gain a hotel of charm and history with a cracking view over to Spain across the Guadiana.