No Buyers for Tsaghkadzor's Golden Palace Hotel Auction, Says Babayan

No bids were submitted for the auction of the Golden Palace Hotel in Tsaghkadzor. Narek Babayan, the head of the State Property Management Committee, stated this in an interview with Armenian Time, adding that the auction scheduled for tomorrow will not take place.

According to him, there were those interested in participating in the auction, but they either failed to submit bids in time or changed their minds. Babayan noted that in the next auction, the starting price, set at 7 billion 526 million 457 thousand 800 drams, will need to be reduced by 5 percent according to the regulations, though a date has not yet been established.

When asked why no buyers came forward, Narek Babayan responded, "We have received feedback from several investors indicating that the calculations do not justify the price, meaning it is too high, and they would not be able to recoup their investment."

It is also possible that the state will operate the hotel. Babayan stated, "If another auction does not take place, other options may be found, and the hotel could be handed over for trust management."

It should be noted that during the government meeting on November 21, it was decided to privatize the hotel along with its movable property through an auction, with a starting price of 7 billion 526 million 457 thousand 800 drams.