While the government, through Air Malta, has decided to sell the Holiday Inn Crowne Plaza, it has chosen to retain the entire shareholding of the Selmun Palace Hotel and will solicit proposals for the management of the hotel for not less than 10 years, sources told this newspaper.

Air Malta will consider all proposals including those offering alternative uses other than providing accommodation in the tourism field. The airline intends getting a signing on fee plus a fixed yearly remuneration for the management of the assets of the company with the successful proposer taking upon himself all the business risks and rewards from the operation of the property.

The hotel was built around a castle of significant historical value and importance originally built by the Knights of St John in 1783, set away from the bustle of the cities and tourist areas in a serene and relaxing rural environment.

It is currently managed by Malta Hotel and Tourism Co (formerly Accor AirMalta Co. Ltd) for a 15-year period that ends 2012.

Figures seen by this paper have revealed that turnover has increased slightly as has room occupancy over the past three years. The hotel had 60.83 per cent occupancy in 2003 with a turnover of Lm1.1 million; 69.85 per cent turnover in 2004 with a turnover of Lm1.1 million and an occupancy of 71.23 per cent in 2005 with a turnover of Lm1.2 million.

However, the company registered an operating loss of Lm268,000 in 2003, Lm208,000 in 2004 and Lm216,000 in just eight months ending March 2005, plus an operating loss of Lm50,000 according to unaudited accounts for the year ended last month.

The hotel had 116 staff in 2003 and 114 in 2005.