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    BusinessNexus hotel re-opens, acquisition process remains incomplete

    Nexus hotel re-opens, acquisition process remains incomplete

    Date:

    Tilksew Gedamu agreed to pay 740 million birr to acquire the hotel

    Nexus Hotel has resumed providing its services after it was shut-down by Authorities for allegedly violating COVID-19 rules. It is among dozens of such establishments closed by the Addis Ababa City Administration during a crackdown against businesses operating in the sector.

    Nexus is the second hotel to see its suspension on its services lifted, next to Sapphire Hotel, which was closed for three months, before it was given a permit to resume operations two weeks ago.

    Though the process is yet to be completed, Nexus Hotel was in the middle of acquisition by the renowned investor, Tilksew Gedamu, who agreed to pay 740 million birr, before it was shut-down.

    Its acquisition comes just three years after it announced it is investing 150 million birr. The investment saw its number of rooms increase to 151.  

    The Reporter confirmed the hotel is now under the management of its new owners.

    “We have transferred the property management to the new owner, though the acquisition process is yet to be completed as the Documents Authentication & Registration Agency had suspended its services for a long time. However, we will complete the title deed transfer process within a month,” said Zena Dawit, former managing director of the Hotel and son of the major shareholder of the Hotel, Dawit Gebretsadik.

    Attempts to get a response from the new owner, Tilksew Gedamu, and the management of the hotel bore no fruit.

    Nexus is not the only hotel that was closed since last year. Hospitality establishments in Bole Sub-city, Harmony, Kaleb, Holiday, Axum and Debre Damo hotels are still closed. The hotels were closed due to allegations of supporting the Tigray People Liberation Front (TPLF) and involving in activities that tarnish the image of the Ethiopian National Defense Force (ENDF), among others.

    Over hundreds of small restaurants and bars have also been closed by Authorities in the capital city in the same period, though majority of them are now open. The Attorney General pledged to investigate the matter and facilitate the reopening of hotels that are still closed but the case is no longer under its control, according to sources.

    “The case is now being handled by a taskforce formed by the Addis Ababa City Administration,” said a prosecutor who was following up on the closure of hotels.

    Ethiopian Tourism and Hotel Market Association, which claims the closed hotels are its members, says it is closely following the matter.

    “The case of each of the closed hotels is being evaluated as the issue is serious since it is linked with security. We are pushing security officials to reopen the hotels as soon as possible,” said Ermias Zewdie, Project Manager of the Association.

    Thousands of employees hired by the closed hotels are still waiting for the reopening of the hotels.

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