Azerbaijani First Daughters' €500M Hotel Investment in Turkey Sparks Debate

Bodrum, Turkey – Leyla and Arzu Aliyeva, daughters of Azerbaijani President Ilham Aliyev, are reported to have made a significant investment of approximately €500 million (around $585.82 million) into Turkey's luxury tourism sector. Through their company, Pasha Holding, the Aliyeva sisters have acquired a 50% stake in the prestigious five-star "Mandarin Oriental Bodrum" resort complex.

The acquisition, widely reported by Turkish media, underscores the substantial financial reach of the Azerbaijani ruling family. According to official data cited by Sozcu.com, Leyla and Arzu Aliyeva are the primary shareholders of Pasha Holding, directly linking the investment to the country's first family.

The partnership agreement facilitating this high-profile acquisition was signed last year between Vedat Aşçı, Chairman of the Board of ASTAŞ – the company that originally developed the resort – and Jalal Gasimov, CEO of Pasha Holding.

The Mandarin Oriental Bodrum, located on Turkey's southwestern coast, first opened its doors in July 2014 following a €650 million investment by ASTAŞ Holding. The resort is renowned for its exclusivity, featuring 132 villas, each valued between €8 million and €15 million, and equipped with private pools and premium amenities. Reports of Pasha Holding's interest in acquiring a stake in the hotel had circulated as early as February 2023.

Following the formation of the partnership, Vedat Aşçı expressed optimism about the collaboration's impact. "I am proud to be an investor in such a successful project," Aşçı stated, adding, "We have made a significant contribution to Bodrum's position among the world's 'jet-set' destinations. Along with the joy this beautiful partnership with Pasha Holding brings us, I believe it will add great value to our country and Bodrum, and I wish this cooperation to be beneficial for all parties and the tourism sector." He further emphasized that the cooperation would create long-term value for Bodrum and Turkey and strengthen Bodrum's place in the global luxury tourism market.

However, the news has stirred considerable discussion within Turkish public circles. Turkish journalist Cüneyt Özdemir, in a segment on his YouTube channel, openly questioned the source of the €500 million invested by the Aliyev daughters. With a hint of irony, Özdemir remarked, "If you notice, no one is entering this topic. Let's not enter it either. Perhaps, the President in Azerbaijan earns a good salary and saves money to become a partner in 50% of a luxury hotel. I was pleased to see the Azerbaijani people living in such prosperity and valuing their officials."

Pasha Holding is recognized as one of Azerbaijan's largest and most influential business groups, with strong interests spanning banking, real estate, and tourism. The group notably owns the Absheron Hotel in Baku and controls approximately 33% of Azerbaijan's banking sector. Pasha Holding expanded its operations into Georgia via Pasha Bank and entered the Turkish market in 2013. As of December 2021, the group's total assets were reported to be 15.5 billion Azerbaijani Manat (roughly $9.5 billion).

As of the time of this report, Pasha Holding has not yet issued a public statement regarding the matter.