Zarea Hotel privatization fails in Chișinău

The privatization auction for the Zarea Hotel in central Chișinău failed after no investors submitted applications for the property, which was being offered at a starting price of 106 million lei. The Public Property Agency (APP) has acknowledged that the institution was not sufficiently prepared for the auction and needs to improve how it informs and promotes state assets.

To attract future buyers, the APP plans to reform privatization procedures. Proposed changes include reducing the required 10% financial guarantee, accepting bank guarantees instead of blocked cash, and extending the timeframe for signing contracts to allow investors more time to secure financing. The agency also intends to digitalize information regarding state assets.

The Zarea Hotel, a 45-year-old building with 137 rooms, has faced financial instability, including losses during the pandemic and reduced profits in 2023 when it served as a temporary shelter for Ukrainian refugees. While the hotel's annual profit dropped significantly in 2025, the APP noted that potential investors would have the flexibility to repurpose the building into offices or a mixed-use complex.