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Oman: Govt disinvestment in Golden Tulip Seeb evinces strong interest

MUSCAT -- A number of local and international firms have shown interest in the privatisation of the government-owned Golden Tulip Hotel at Seeb , one of a number of commercial entities targeted for disinvestment in the coming years. A total of around 18 prospective bidders collected tender documents by Wednesday, June 27, 2007, the deadline for the distribution of these documents by the Tender Board. Several leading players from the hospitality sector in Oman and the wider region have evinced interest in the bid, as also have a number of well-known business houses.

The line-up of interested parties includes Oman Aviation Services; Oman Hotels & Tourism ; Al Habrout LLC; Qatar National Hotels Company ; OHI Petroleum & Energy Services ; Ahmed Farid Mohammed al Aulaqi; Al Habib & Co and Flamingo. Other players, represented by special purpose vehicles (SPVs), are said to be in contention as well. Bids are due in by July 23, with an outright sale of the property likely to be formalised before the end of this year.

The four-star Golden Tulip Seeb is described as perhaps the most attractive of a raft of companies identified by the Ministry of National Economy for privatisation through a disinvestment of the government's stake in these entities. Candidate companies cleared for privatisation are Oman Flour Mills (55 per cent government stake), Oman Fisheries (24 per cent), and Oman National Transport Company (fully state-owned), besides Golden Tulip Seeb. By selling its stake in these entities, the government aims to offload its non-strategic assets and place them entirely in private hands, thereby ensuring they are better managed, it is pointed out.

According to officials, Golden Tulip Seeb represents a very attractive investment proposition for potential investors not only in terms of its physical assets, but also from several other standpoints as well. The 180-room property, which also features a number of outlets and public places for dining, leisure, recreation and entertainment, is expected to generate continuous cash flow to the successful bidder in light of the current boom in the hospitality sector, as well as the record occupancy levels witnessed during the winter tourism season.

Furthermore, its location within easy distance of Seeb International Airport makes the property hugely convenient to business travellers. Airport Heights is also targeted for major tourism development, with a number of prestigious projects planned in the area. Besides having the upscale Muscat Golf & Country Club, the Airport Heights area will also host a world-class convention centre complete with a 5,500-seater purpose-built auditorium. The complex, conceived as a gateway to Muscat, will also feature four international hotels of a total of 1,000 rooms and suites, as well as a Business Park and a retail facility.

These ambitious initiatives promise to turn the Airport Heights into an upscale tourism and real estate neighbourhood, which in turn will reflect well on the Golden Tulip property. The hotel itself is set on an expansive plot of land, with its own staff quarters and also enjoys the distinction of being the only hotel with its own football field. Opportunities for redevelopment and investments in new facilities abound, given the size and location of the property. It is understood that the property will be offered to the highest bidder, provided a host of other criteria are met, on the condition that it remains in the hospitality sector. BankMuscat is providing financial advisory services to the Ministry of National Economy on the privatisation of Golden Tulip Seeb

By Conrad Prabhu

© Oman Daily Observer 2007