The Ethiopian Airlines Aviation Group has proposed to take over the Addis Ababa Hilton and Ghion Hotels, two state owned hotels found in Addis Ababa.
The new aviation group under establishment comprises Hotel and Tourism Services Company. Reliable sources told The Reporter that the Ethiopian Airlines Aviation Group has proposed to the government to takeover Hilton and Ghion Hotels to annex them to the Hotel and Tourism Services Company which is under formation. “It is not yet decided but the issue is under discussion at higher government level,” sources confirmed to The Reporter.
The Ministry of Public Enterprises in the past has repeatedly tried to privatize Ghion Hotel. Several privatization attempts have failed for various reasons. Recently, Mayor of the Addis Ababa City Administration, Diriba Kuma, announced that the government has decided to transfer Ghion Hotel to the Addis Ababa City Administration. It was also reported that the government would soon put up tender to privatize Hilton Hotel.
The Ministry of Public Enterprises said that it is unaware of any attempt to transfer the two hotels to the aviation group. “Ghion Hotel is transferred to Addis Ababa City Administration. Regarding Hilton, we have planned to undertake asset evaluation work this budget year. We are not informed of Ethiopian Airline’s attempt to take over the hotels. But the idea sounds good,” official of the ministry told The Reporter.
However, reliable sources told The Reporter that Ethiopian Airlines group leadership has proposed to the government to take over the Addis Ababa Hilton and Ghion Hotels and administer them together with the new four star hotel Ethiopian Airlines is building near its headquarters. “When it comes to Hilton Hotel there are three options-one to fully privatize it.
While the second is to jointly develop with a private hotel company. And, third is to transfer it to the new aviation group which is under formation. The airline management has proposed the third option and it is under discussion,” sources told The Reporter.
Ethiopian Airlines Group CEO Tewolde Gebremariam told The Reporter that there is the possibility that Ethiopian could acquire Hilton and Ghion Hotels. It could be in the future but now we do not have that instruction from the government. But there is that possibility,” Tewolde said.
The Council of Ministers last month approved the establishment of an aviation group that comprises of Ethiopian Passenger Airline, Aviation Academy, Maintenance Repair and Overhaul (MRO), Catering, Ground Handling, Cargo and Logistics, Ethiopian Airports Enterprise and Hotel and Tourism Services with an authorized capital of 100 billion birr. The aviation group will eventually evolve to a holding company as the existing commercial code of Ethiopia does not provide provisions of for the establishment of a holding company. Currently, the government is drafting holding company proclamation.
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