Tuesday, September 13, 2011

Ghion Hotel up for sale once again

(14 September 2011, Addis Ababa, Capital)--Ghion Hotel Enterprise, one of the three hotels under the Privatization and Public Enterprises Supervising Agency (PPESA) is up for sale this Ethiopian New Year, along with other 17 public enterprises.

Ghion, the biggest hotel that is currently fully controlled by the government, has been offered for auction before, on different occasions, but so far none of the deals made have been fruitful.

One of the previous deals, which took place in the past budget year (2010/11) was with Ethiopian born Aklile Berhan Mekonnen (Prince) based in Europe. 

PPESA, the public enterprises regulatory body,  had concluded the 512 million dollar deal for joint venture management, but the deal was terminated after six months due to a delay by the investor in coming up with the initial 210 million dollar capital.

Other ways have also been tried to transfer Ghion fully or on joint venture management to interested investors. So far none of them have been successful though big investors in the country and abroad have shown interest in buying the hotel, which is located in the heart of Addis Ababa behind the National Palace.    

Wondafrash Assefa, public relation head of PPESA, told Capital that the agency will offer the hotel for bidding in the 2011/12 budget year. Ghion, which is mostly popular for its wide garden area, is one of three hotels that is owned by the state. 

The Ghion Hotels Enterprise was established in 1951 and used to operate a chain of eleven hotels. The rest of the hotels, which are all located in historical areas of northern Ethiopia, have already been transferred to private investors. FULL ARTICLE AT Capital Ethiopia  »

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