Haile running for Axum Touring Hotel
Four companies have passed a technical evaluation by Tigray Cultural and Tourism Bureau (TCTB) in response to a bid issued by the Bureau to sell the old Abrah Castle Hotel. Green Coffee Agro Industry, Endowment Fund for the Rehabilitation of Tigray (EFFORT), ASER Construction and GMT Industrial PLC, completed the final steps to own the hotel. The evaluation was conducted around ten days ago.
Two components decide who wins the bid. Financial documents of the companies comprises 30 percent of the evaluation and the technical evaluation is 70 percent. After this process the winning company will be announced. Over 90 entities attempted to start the bidding but only these four companies completed the process. The technical appraisal is comprised of; quality, integrity, practicality, pace of implementation, proof of financial capability, employment generation, human resource development and management competency.
The 60,000sqm Abraha Castle Hotel which is currently owned by TCTB will either be a four or five star hotel. The winner of the bid will be expected to complete constructing new facilities in four years. If the hotel is opened in three years, the TCTB will refund 50 percent of the total investment made on the expansion facilities.
The hotel currently has 24 rooms and two small restaurants. One serves traditional Ethiopian food and the other offers European cuisine. The buyer is expected to preserve the old castle in the hotel, while at the same time building a new hotel which could have as many as 300 international standard rooms, a swimming pool and parking.
It was the residence of Dejazmach Abreha Araya, the governor of Tigray and is built on an artificially raised landscape. The hotel has been in operation since 1960.
In related news Haile and Alem International P.L.C., which is owned by Haile Geberselassie and his wife Alem, participated in the technical evaluation in an attempt to purchase Axum Touring Hotel. In addition to Ethiopia’s famous runner, GAF General Merchandise PLC, GMT Industrial PLC and three others will compete to own the 11,000sqm hotel. Hopes are that it will become an international standard hotel.