Ghion on Offer for Lesser Price in Second Round
Agency changed price after private consultancy firm assessed assets, value.
Addis Ababa, Ethiopia -Ã‚Â The Privatisation and Public Enterprises Supervising Agency (PPESA) will lower the indicative price of Ghion Hotel Addis Abeba, when itÃ‚Â re tendersÃ‚Â it for full private ownership in the coming three weeks, after taking the recommendation of outside consultants, SAB management and Development ConsultancyÃ‚Â FortuneÃ‚Â learnt.
Officials from the Agency will onlyÃ‚Â confirmÃ‚Â that the indicative price is lower than before, but have declined to state the exact amount. However a source who used to work closely on the matter had stated that it may be between 100 million and 130 million dollars.
The indicative price for the hotel had been set at 150 million dollars,when it was put on the auction bloc for full private ownership for the first time last July.
Although around 12 local and international companies,including hotel owners and those involved in theÃ‚Â import export businessÃ‚Â had bought the bid document, no one had submitted tenders for the hotel in time for the bid closing date.
Ã¢â‚¬Å“The time was too short to secure the appropriate financing from foreign banks and submit a completeÃ‚Â bid,Ã¢â‚¬Â an advisor to a foreign company interested in buying the Hotel had toldÃ‚Â FortuneÃ‚Â then.
The expert who also has long years of experience in the Ethiopian hotel business also added that the indicative price is fair if enough time is given to submit bids, since the hotel has ample open space.
Addis AbebaÃ¢â‚¬â„¢s Ghion, one of the last two remaining of the 11 hotel chains under the GhionÃ‚Â HotelsEnterprise, was built in 1951 and sprawls over 12 ha of land.