Some well-known hotels up for sale in Addis Ababa

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Addis Ababa might be undergoing an unprecedented hotel boom yet it has also an unusually large number of hotels for sale due to a string of operational and loan issues, Ethiopia Observer has learnt. Some well-known venues, Intercontinental Addis, Nexus Hotel, Washington Hotel, Azzeman Hotel and Monarch Hotel, located in prominent positions in Kazanchis and Bole are either on the market or close to selling. The number for sale “is remarkable,” said Tadesse Ayele, a real estate agent and broker. “I’ve never seen such number of hotels for sale since a number of years.”
The four-star Intercontinental Addis is a case in point. The hotel owned by DH Simex Plc, with the major shareholding going to Simachew Kebede, who left prison a month ago after serving four years for tax evasion, has unable to pay the loan from Awash Bank and Abyssinia Bank in due time. A buyer appeared to be in sight last month as ONOMO hotel, a French hotel group with good presence in West Africa, started a deal to purchase the hotel but failed to meet the offer price of 1 billion Ethiopian birr. Talks are still underway to find a buyer for the hotel, that has 150 rooms.
The Washington Hotel, with 70 rooms, located in Atlas area, owned by Asfaw Amde and Workensh Getachew, a couple returned from the United States, is also debt-laden and looking for a buyer. Despite good location, and some features such as a penthouse for presidential guests and an area of 1200 sq meters ground parking for 50 vehicles, making profits have not been evident. The couple who used to run Addis Ababa Restaurant in Washington DC for more than three decades decided to sell it and involve in other ventures, according to close sources.
The Addis Ababa Hotels Owners Association spokesperson says though last year business has not been one of the most profitable with regards to room occupancy, most of the hotels managed to get good profits from food and beverages sale and conference hall rents. The spokesperson admits most of the hotels were built from 70 percent loans of bank and in some cases, the existing loans for the hotels are maturing, leaving the owners with little ability to refinance at for amounts sufficient to pay off existing debt. While the explanation for most of the hotels is the lack of capacity to honour the commitments made with the banking credit, lack of management skill is also becoming major handicap. Our sources mention that the international chain hotels, the Golden Tulip Hotels and Resorts, (managed by Louvre Hotel Groups), Ramada (run under Wyndham Group), the Addis Ababa Marriott Hotel and Radisson Blu are performing well. Lack of skilled and experienced management is plaguing the hotel industry and some of the hotels are not running their sales according to international standards.There would be many that would be out of the market soon, according to the same sources.

Arefayné Fantahun
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4 Discussion to this post

  1. Tiliksew says:

    Could you enlighten me on this please? All major hotels and buildings in Addis Ababa are owned by people form the same region. Capital, Golden Tulip, Harmony, Nexus, Monarch, Sapphire, Kaleb, Ambassador are all owned by people from Tigray region. Is this an accident? Can anyone could explain to me how it could happen? Amhara and Oromo people are not good business people?

    • ethoash says:

      #Tiliksew

      may be the oromo and the Amhara boycotting the TPLF economy and they left out

  2. Henok says:

    This article was written by an ignorant person and the article encourages international chains, which means economic colonialism. You know that you have to pay 40 percent for those chains and you’re encouraging local hotels to do that. When you are in international chain, you’re supposed to bring foreign managers. There are hotels run by local managements and dong good, take the case of Elliy hotel, led by Dr. Barentu, one of the best managers. Please talk to people before you write.

    • ethoash says:

      Henok

      International chain also they bring their expertise …. this is international hotel we r talking their brand name also selling point …. even the local hotel equal quality the brand name hotel might get advantage because brand recognition and customer bias

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