The Thua Thien-Hue branch of the Bank for Investment and Development of Vietnam (BIDV) has disclosed its intention to auction a four-star hotel located in the namesake province of central Vietnam.

This hotel, used as collateral for loans, will be auctioned off on July 12 with an initial bidding price set at VND100 billion (US$3.9 million).

MidTown Hotel Hue, located at 29 Doi Cung Street in Phu Hoi Ward, Hue City, was invested in by Thanh Trang Company Limited.

According to the bank’s description, the hotel has 13 floors and a semi-basement, and covers a total floor area of 5,850 square meters.

The starting price includes income tax related to the transfer of land use rights.

However, it excludes value-added tax and stamp duties for transferring both land use and asset ownership rights.

In March last year, the bank conducted an auction for the debt of Thanh Trang Company.

The debt comprised the principal of VND85 billion ($3.3 million) and the interest of nearly VND41 billion ($1.6 million).

A few days ago, BIDV announced that the lender would hold an auction for a combined debt of four customers, namely Kim Vinh Company Limited, Nguyen Kim Vinh, Le Kim Cam Lynh, and Le Duc Quang Huy.

As of June 5, the debt had reached over VND128 billion ($5 million).

One of the assets pledged as collateral for the loans was the ownership rights of Le Belahamy Tourist Area located in Dien Ban Town, Quang Nam Province.

Le Belahamy is a four-star tourist site situated along Ha My Beach in Hoi An, covering more than 10 hectares of land.

Several other properties in Quang Nam Province were also utilized as collateral for these loans.

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