By Alexandra Fouch� BBC News Online

When news came through of the bombing of the Shaheen Hotel in Baghdad in January, to many it was just another incident in a series of almost daily attacks in the Iraqi capital.

At least three people were killed, including one South African businessman, while many more were injured.

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And for owner Zorab Shaheen, the long-term effects were devastating.

The explosives-laden ambulance driven up to the hotel entrance at high speed completely gutted the building, leaving an empty shell barely standing.

"Everything was damaged, inside, outside, the aluminium structure, the marble, the granite walls 3.4 centimetres thick, the furniture imported from Italy, the air conditioning, the lifts, the electrical and water systems," he told BBC News Online.

Precautions fail

Worst though, he says, is the damage done to his hotel's reputation.

Built 20 years ago, it was a favourite haunt of foreign businessmen because of its central location in an upmarket part of town, also home to foreign embassies.

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"We had taken all precautions. We built concrete blocks and closed the street," Mr Shaheen says.

But the bomber managed to drive his load over the concrete defences, and although guards opened fire to try to stop him, he managed to reach the front of the Shaheen Hotel, where the vehicle exploded.

Iraqi police and the US military said it was packed with between 500 kilograms and one tonne of explosives, Mr Shaheen says.

The attack is thought to have been targeted at Iraqi Labour and Social Affairs Minister Sami Azara al-Majoun, who had been staying at the hotel for four months.

Picking up the pieces

Mr Shaheen is hoping to rebuild the hotel and have it up and running again soon, although without insurance - "not in Iraq" - this will require hard cash and patience.

Given the country's state of flux, it will be especially difficult to find the materials to replace the damaged structure.

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Mr Shaheen, who had been planning the construction of a second hotel, has now put all his plans on hold while rebuilding his first property. But he is hoping to attract foreign investors for the reconstruction of his first.

He believes the bombing would not have happened under Saddam Hussein.

"Suicide bombers are foreigners who are coming from outside Iraq - al-Qaeda or others. Under Saddam, people suffered, but did not do things like this," he said

There is no doubt Saddam's departure has made a massive difference to people's lives in Iraq, he says.

"People feel freer. Before, under Saddam, they were afraid for their safety. Now there is a different mood."

Painful departure

Mr Shaheen has visited every three or four months since the fall of Saddam and is hoping to remain for longer periods later in the year.

Of Armenian origin, Mr Shaheen and his family left Iraq in July 1994 when a law banning alcoholic drinks from being served in hotels led to a swift downturn in business. This, combined with the embargo at the time and the generally sombre mood in the country, convinced him to leave.

"Social life was bad, business was down, and people's mood was down. Intelligence people could come at any moment to take you away. People were always afraid."

In the end, Mr Shaheen decided to leave, plumping for Turkey where he already had business associates and friends - although leaving Iraq was not easy.

"In Iraq, we lived like kings. In Turkey, we were just foreigners."

Mr Shaheen hopes to be able to settle in Iraq as soon as the political situation stabilises. People are happy, but they would like to have authority given back to them, he says.