Foreign partners 'surprised' after being told Multi Grand Hotel closure is political, employee says

Employees of the Multi Grand Hotel said they have told international business partners that the closure of the luxury hotel is politically motivated, adding that the situation has surprised foreign clients and could create contractual problems.

Speaking to reporters during a protest by employees of the Multi Grand Hotel and the Pharaon entertainment complex on Monday, one hotel employee said the five-star property works primarily with international markets, including Russia, Iran, China, Israel and South Korea.

"We explained to all of our partners that the reason for the closure of the hotel is political. They were very surprised," the employee said. "They like working with us, and our cooperation has always been convenient for them."

The employee said foreign partners understand the situation but warned that contractual obligations may not be fulfilled because of the disruption, potentially leading to business disputes.

The employee praised the hotel owner, detained businessman and opposition leader Gagik Tsarukyan, saying he had created more than 70 businesses employing over 10,000 people and had funded numerous charitable initiatives.

The employee further alleged that when law enforcement officers entered the hotel last Monday, during breakfast service, guests were forcibly escorted out of the premises.

Tsarukyan, the leader of the Prosperous Armenia Party, has been detained on charges of money laundering and fraud widely regarded as politically motivated.