Uzbekistan’s State Assets Management Agency (UzSAMA) has announced the commencement of the privatization process for the renowned International Hotel located in Tashkent.
UzSAMA revealed plans to divest the entire state stake in the International Hotel through a public offer for negotiations, open to all interested parties. Deloitte, the international consulting firm, has been enlisted as the advisor for the project, providing expertise and guidance throughout the privatization process.
Prospective buyers will undergo a selection process spanning three stages: Express of Interest, Non-Binding Offer (NBO), and Binding Offer (BO). At the final stage, potential buyers are required to submit a guarantee payment equivalent to at least 1% of the proposed binding price offer. The application deadline for interested parties is set for July 4, 2024, at 18:00 local time.
The decision to privatize the International Hotel aligns with the decree issued by the president of Uzbekistan on April 26. Initially slated for public auction on the international market in the first quarter of 2025, the accelerated timeline reflects the government's commitment to expediting privatization processes.
Established in 1997 in Tashkent's Yunusabad district, the International Hotel, under the management of InterContinental, became Uzbekistan's first five-star hotel. Following InterContinental's departure from Uzbekistan in May 2012, the hotel transitioned into state ownership and was rebranded as the International. InterContinental resumed operations in Uzbekistan, managing a new hotel in the city center in 2022.
The International Hotel boasts a range of amenities, including 232 rooms, 7 conference rooms, 2 restaurants, bars, an outdoor terrace, and a fitness club with a swimming pool. The property spans 45,000 square meters of buildings and structures, situated on 3 hectares of land.
Additionally, the hotel holds a sublicensed agreement with the Accor group, granting access to the Swiss Mövenpick brand and other IT systems within the TARS Accor Hotels network.
The privatization initiative extends beyond the International Hotel, as Uzbekistan aims to accelerate the divestment of state-owned assets across various sectors. The president's decree outlines plans to sell state shares in 247 companies, including the Humo payment system, over 1,000 real estate properties, and the public offering of shares of 12 large enterprises. Moreover, unsold land plots will undergo a gradual price reduction to facilitate their sale.
This year, the privatization drive is anticipated to generate revenues of UZS 20 trillion ($1.6bn) through the sale of stakes in 400 enterprises, real estate in 800 enterprises, and 2,000 hectares of land.
In 2021, UzSAMA led a rapid privatization effort of state-owned enterprises (SOEs), attracting both domestic and international investors. Key achievements included full privatization of the cotton sector and ongoing progress in wheat production.
The Coca-Cola bottling plant was successfully privatized by the Turkish Coca-Cola İçecek (CCI) Group, alongside significant deals sealed during a pivotal economic forum. By December 2022, Ipoteka Bank was privatized, with OTP Bank acquiring a 75% stake. Reforms extended to sectors like banking and real estate, with Poytaxt Bank privatized and plans for digital banking services.
UzSAMA prioritized transparency and fairness, supported by international consultants. Legislative reforms aimed at refining the privatization framework continued, targeting a 75% reduction in government ownership by 2025, including major entities like the Navoi Mining and Metallurgical Combinat through IPOs.
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