Packages with a majority of shares in six hotel companies were sold through public tenders, while the other two were sold on the market.
After these sales, the HFP still owns packages with a majority of shares in 14 hotel companies, and the state holds smaller stocks in another 78 companies.
A pace of the privatisation of the remaining companies in 2006 will depend on a new law on privatisation which is being drawn up.
The privatisation of hotel companies in 2005 was also marked by a scandal surrounding the transfer of 80 percent of HFP-owned shares in the Liburnia Riviera company, based in the seaside resort of Opatija, to two holdings called SN and Dom. The transaction should have settled the government's debt to the holdings which was incurred during the voucher privatisation. In the summer the Ivo Sanader cabinet first gave a go-ahead for the transfer of the shares, and after this move elicited strong media and public reactions, the government withdrew its approval, and the shares were given back to the HFP fund. The consequence of the scandal was the removal of Damir Ostovic from the post of the fund's president and he was replaced by the acting president, Grga Ivezic.