After being put up for privatization more than ten times before, the state-owned Zarea Hotel in central Chisinau still remains unwanted as the latest privatization round ended on August 18.
Mihai Soţchi, deputy director of the Public Property Agency, has told IPN the Agency intends to hold a repeated round some time in September or October to try and sell the state property that remained without demand after the initial round, including Zarea.
In 2016, Zarea reported a loss of about 250,000 lei and the next year the loss reduced to 60,000 lei. In 2018, the hotel had a modest profit of 76,000 lei, and in 2019 it increased to 343,000 lei. The hotel closed briefly during this year’s general lockdown.
The Privatization Commission has set the initial price of Zarea at 29.5 million lei.
Four years ago, the hotel was awarded to an individual buyer, who submitted a bid of 35 million lei. The winning bidder then failed to pay up, even after being granted a two-year extension, so the Commission annulled the deal.
