Two hotels in Tashkent were privatized

The entire state share in the International Hotel and Lotte City Hotel in Tashkent has been sold, as reported by the State Asset Management Agency on November 21.  

The International Hotel, located in the Yunusabad district, was purchased by "Smart Fast Stroy" LLC for $26 million. In addition to the purchase price, the investor assumed responsibility for the hotel’s €14.7 million loan and committed to investing over $41 million into the property.  

- "Smart Fast Stroy" LLC was registered in August 2023. Initially owned by Muhiddinov, the son of Muhiddin Usman, it is now owned by LLC Aleksandr Valerievich Zakharyan, with Temur Zakirov serving as the company head.  
- Aleksandr Zakharyan co-owns several companies, including Octo, Octopay, Octotelecom, and Finance Invest Brok.  

Six companies expressed interest in purchasing the International Hotel, but only three submitted binding offers. Deloitte acted as a consultant, and Ernst & Young provided an independent valuation. The final price of $26 million exceeded Ernst & Young’s estimate and was at the upper limit of Deloitte’s valuation.  

Lotte City Hotel, also situated in the Yunusabad district, was sold to Alfa Invest insurance company for $20 million.  

- Fifteen companies showed interest, but only three submitted binding offers.  
- The buyer agreed to a strict condition to consult the Ministry of Construction and the Cultural Heritage Agency before undertaking any construction, renovation, or reconstruction to preserve the hotel's architectural appearance.  

KPMG acted as a consultant for the privatization, while Deloitte provided an independent valuation. The final price of $20 million was above Deloitte’s estimate and reached the upper range of KPMG’s valuation.