Two bids for the purchase of Selmun Palace Hotel and the temporary grant of the adjacent castle will still be evaluated by the Land Department, despite lacking information.

The department received two bids when the call closed earlier this month, from Caterina Vitale Company Ltd and Orbis Group International, a spokesman for the Land Department said.

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.

This was the second time the government issued a call for bids for the hotel after there was only one reply amounting to just over €2 million in response to the first call. It was turned down because it did not meet the government's expectations.

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

The airline, which recently announced losses amounting to €31 million for the last financial year, decided to sell non-core operations and focus solely on the airline business. In fact, one of the conditions is that the bidder for the hotel and the castle has to purchase Air Malta's entire equity in the company.

Selmun Castle, originally built by the Knights of St John in 1783, is being offered on a temporary emphyteusis for a period of 99 years against a ground rent of €70,000 a year. The castle houses some of the hotel suites as well as being the venue for weddings and other functions.

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.