Rating of Armenian Developments

YEREVAN. – Dvin Hotel will be reconstructed by 2014, or even earlier, Government-Affiliated State Property Management Department Head Arman Sahakyan stated during a press conference on Wednesday. 

And the basis for this optimism is the new commitments which the Hotel’s proprietor has assumed. According to these obligations, if the proprietor does not carry out the investments specified in the contract, it will have to pay ten percent of the unfulfilled investments, as penalty.   

Dvin Hotel was sold in 2003 to the Caucasian Communication Group Company for $3 million US, and, in line with news circulated in the press, one of the Company’s owners is   Iosif Kobzon, a renowned Russian singer. The buyer had pledged to build a 5-star hotel in five years and to invest $30 million; but no serious investment is made so far.

According to Sahakyan, the previous contract solely specified the amount of investment, and nothing was stated concerning fines and penalties.

Source: news.am