The Selmun Palace Hotel will not be sold for anything less than €8.4 million, Finance Minister Tonio Fenech has said in Parliament.

Replying to a parliamentary question, he said that the only new condition in the second call for bids for the sale of the hotel was that any offers below that amount would not be considered.

He said that should a sale take place, the funds would be shared between the government and Air Malta.

It was announced last month that following the second call, two bids had been received for the purchase of the hotel and the temporary grant of the adjacent castle. Both will be evaluated by the Land Department, despite lacking information.

The bids were made by Caterina Vitale Company Ltd and Orbis Group International.

The former submitted a bid of nearly €8.6 million while the latter company did not specify how much it was offering for the hotel and the historic castle.

The bid submitted by Caterina Vitale Company Ltd was not accompanied by a €150,000 bid bond, as required by the Commissioner of Land in the tender document.

The first call for bids attrcted only one offer amounting to just over €2 million.

The hotel is owned by Selmun Palace Hotel Company Ltd, a fully-owned subsidiary of Air Malta.

Selmun Castle is being offered on a temporary emphyteusis for 99 years against a ground rent of €70,000 a year.

Designed by Domenico Cachia in 1619, the castle is often perceived as the baroque version of Verdala Palace. It was the most important property of the Monte Di Redenzione, a pious foundation set up in 1607 for the ransom of Christian slaves from Barbary States.

The castle was leased to Air Malta for 99 years, on condition that the company had to restore and preserve it and guarantee free access to the public.