Effort offers 25m birr for Axum Touring Hotel
The bid to privatize Abreha Castle Hotel finally became successful when Michael Gebru and Tsehay Real Estate jointly offered 132 million birr last Wednesday.
It is expected that the Tigray Cultural and Tourism Bureau (TCTB) will allow the joint companies to buy the hotel and reconstruct it within the next four years.
The bidders received the highest point in the technical evaluation which includes quality, integrity, practicality, pace of implementation, proof of financial capability, employment generation, human resource development and management competency.
The technical evaluation is 70 percent of the evaluation bid. The remaining 30 percent depends on the financial offer.
In this bid the Endowment Fund for the Rehabilitation of Tigray (EFFORT) offered 121 million birr.
Green Coffee Agro Industry also participated in the bid.
The bid was delayed previously for technical reasons.
The 60,000 square meters Aberha Castle Hotel which is currently owned by TBCT will be a four or five star hotel. If the hotel is opened in four years TCTB will refund 50 percent of the construction cost.
Abreha Castle Hotel which was the residence of Dejazmach Abreha Araya (1872–1917), the governor of Tigray, is built on an artificially raised landscape and has served as a hotel since 1960.
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.
In related news, EFFORT offered 25 million birr to own Axum Touring Hotel and GAF General Merchandise PLC offered 20 million. EFFORT will most likely buy the hotel and reconstruct it in the next few months.