Prince shows interest to acquire Ghion Hotel again


The Ethiopian born and Italian based investor Aklile Berhan Makonnen (Prince) has expressed again its interest to seal the Ghion Hotel Enterprise deal.

The investor who signed a deal with the Privatization and Public Enterprises Supervising Agency (PPESA) in September 2010 to buy Ghion Hotel with 512 million dollar, which include the development of a new hotel, failed to come forward with the amount of money he offered. The agency further extended the deadline for the payment, but the new extension date was not met either by the contestant. 
Despite his failure Aklile Berhan has come forward to negotiate with the agency again. In September 2012 he told Capital that he is still interested to acquire the hotel, following the bid announcement by the agency to fully privatize the hotel attracted no potential buyer.
Now, the prince told Capital on a phone interview from London that his company has sent a letter to Beyene Gebremeskel, Director of PPESA, on January 3, 2013.
He said that he has had high interest to invest on the Ghion hotel, which is located in the heart of Addis Ababa, adjacent to the National Palace.
The initial deal between the two parties that was concluded in late August 2010 indicated that the investor was supposed to come up with 210 million dollars as an initial payment.
The total investment sum would be 310 million dollars, which includes 100 million dollars as a share by the government. Moreover the prince promised to invest 202 million dollars for a new facility in the premises.
According to the investor’s proposal, accepted by the board of PPESA, the current swimming pool will be closed down for the public and make way for a new four star hotel and another building which will house a five star hotel adjacent to it. Aklile, who says is one of the last sons of Prince Makonnen Hailesellasie, had also promised that the two hotel buildings will be completed within five years.
“After several months elapsed since the last contacts held in regards to the Ghion Hotel project in Addis Ababa, I wish to inform you that I am now able to resume our negotiations and contacts aimed to assess any chance to make up for the lost time and execute the work carried out by my organization in these last years,” explained the prince in his latest letter sent to PPESA director.
“I made this decision also in consideration of the fact that the tender competitions recently published for the Ghion Hotel requalification did not achieve the result you expected, and that at the moment there are no valid initiatives capable to stand out as an alternative to my concrete and generous proposal, and also in consideration of some changed conditions laid out for the execution of the project, such conditions representing to me a  further element supporting the success of our initiative,” the hopeful investor added.
“If my extension request had been accepted, today we would already be at a satisfactory state of progress on the works of execution of the projects of the two hotels,” he explained. 
“Now with the convincement that my proposal represents a valid solution for the execution of the project, I have been carrying on my commitment bearing remarkable economic costs, to enable my technicians to continue their work and finish the planning as required to be conditional to the start of the works,” he added in his letter.