InterContinental Hotels Group pulls out of Uzbek hotel market

Business Materials 29 May 2012 18:41 (UTC +04:00)

Uzbekistan, Tashkent, May 29 / Trend D. Azizov /

The InterContinental Hotel stopped trading in Tashkent on May 28 as a result of the expiration of the treaty between the British InterContinental Hotels Group (IHG) and the Uzbek side.

Uzbekistan and the British company did not prolong the contract with international hotel chain InterContinental Hotels Group to manage the hotel in Tashkent, a source in government circles told Trend on Tuesday.

According to the source, a senior manager and other employees of the management company have recently left the hotel. The term of the contract of the management company expired at the beginning of the year. However, the parties failed to agree on its extension due to a number of contentious issues.

According to the official website of InterContinental, the hotel will have a different name - InContinental Tashkent Hotel.

At present, the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan which owns the hotel building, is negotiating with five international hotel business operators. It is planned to sign a contract with these operators to manage the former InterContinental.

The hotel was commissioned in 1997 and since that time it worked under the name InterContinental. The hotel is the only five-star one in Tashkent. There are nine four-star hotels in the republic.

It was previously reported that the construction of the highest category hotel Hyatt International worth $113 million started in Tashkent this year. Commissioning a new hotel with 294 rooms is scheduled for autumn 2013.

According to the agreement, Hyatt International must render technical advisory services during design, construction and equipping operations and hotel management services.