What Purpose Will the 'Golden Palace' Serve and How Will the 5 Billion Drams Be Managed?

As we reported yesterday, the 'Golden Palace' hotel complex in Tsaghkadzor has been sold for 5 billion drams. It has also been announced that the buyer is 'Project Inter-Invest' LLC. The head of the State Property Management Committee, Arnak Avetisyan, stated in an interview with 'Haykakan Zhamanak' that the hotel will retain its significance.

"The building will continue to be used as a hotel, but I cannot say whether there will be changes concerning the name or not," Avetisyan noted. When asked if there is a specific timeline for the hotel to be operational again, Avetisyan responded, "Investments must begin starting from the first year. In the next 5 years, an investment of 4.5 billion drams must be made. If the investment obligations are not maintained, the state can impose fines and also return the building."

The committee chairman also mentioned that the buyer will pay the 5 billion drams to the state over a period of 5 years, at a rate of 1 billion drams per year. "30 percent of each payment will be transferred to the budget of the enlarged community of Tsaghkadzor in the Kotayk region, which totals 300 million drams," Avetisyan pointed out.

Tsaghkadzor Mayor Narek Harutyunyan also explained to the media how the 5 billion drams from the sale will be spent. "We have issues with irrigation and drinking water, as well as road paving. The funds will also be directed to the improvement of Tsaghkadzor’s appearance, in order to ensure an even greater influx of tourists to our community. We are considering building an ice rink, new interesting recreational areas which will further enhance visitors’ experiences in Tsaghkadzor," the mayor emphasized.

It is worth noting that the company that purchased the hotel, 'Project Inter-Invest' LLC, is located in Masis city of Ararat region and is engaged in supplying flour, cement, and economic goods, as well as freight transportation, refrigerated storage, and automotive services. The director of the company is Narek Nalbandyan.

Furthermore, it should be added that in 2019 and 2020, the government had already organized 6 auctions for the 'Golden Palace', but all announced auctions failed due to lack of applications. The auction was first announced in 2019, with a starting price of 7 billion 526 million 457 thousand 800 drams. Recall that at the session on September 26, 2019, the government of Armenia decided to accept the 'Golden Palace' hotel in Tsaghkadzor, belonging to the former head of the Customs Committee, Armen Avetisyan, as a donation.