Home News hotel Sheraton Metechi Palace sold for $67.5M

hotel Sheraton Metechi Palace sold for $67.5M


Hotel Sheraton Metechi Palace was sold today at auction in Tbilisi for $67.5 million, instead of starting price of $25million. The hotels owner became Rakeen Development from United Arabian Emirates, which plans to maintain the management of the hotel.


The hotel was built in 1989-1993 by Austrian funding and is located in Tbilisi, on Telavi St. 20. Its total area is 30,000 square m, attached land plot – 24,500 square m.


Among 7 pretenders were Georgian Sakinevst (Georgian Invest), companies from Israel, Great Britain and Greece, as well as private individual from India.


The auction was announced by bankruptcy manager of LLC Georgian-Austrian Joint Venture Metechi (i.e. Sheraton Metechi Palace), because of account payable in amount of 101 million EUR (including sanctions). Bankruptcy regime has been launched in LLC since February of the current year.


Part of debts, which cannot be covered by sums, gained from the auction, will be written off during LLC liquidation, Ministry of Economic Development informs.


As for the Rakeen Development, the company has already been implementing investing projects in Georgia, including construction of tourist complex in Tabakhmela, Tbilisi resort suburb. Investment volume made up $80 million, the company representatives noted.

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