Uzbekistan: Top Tier Hotels Linger on Market

The Uzbek State Property Committee can't unload stakes in two luxury hotels in Tashkent. As a result, Uzbek officials are extending the tender period for the two properties.

Potential bidders will now have until June 10 to submit tenders for a 35 percent stake in the Grand Mir, valued at $7.8 million, and a 39 percent stake in the Dedeman Silk Road, worth an estimated $11.3 million.

The latest opportunity to purchase 100 percent of the Markaziy Hotel for $40.1 million, and 99 percent of the Tashkent Palace for $37 million, closed on March 24. Both have been for sale for over a year. A spokesman for the State Property Committee told EurasiaNet on May 12 both properties are currently being re-evaluated.

Experts say Uzbekistan has been slow to adjust to the downturn in business travel. Thus, many of the country's luxury hotels now find themselves priced out of the market. Occupancy rates are said to rarely rise above 25 percent.