Addis Gets One More International Brand Hotel

Ozzie Business and Hospitality Group facilitated the deal on the local property developer

Movenpick Hotels and Resorts, a Swiss hotel management company operating in 25 countries, has signed a 20-year management deal with Yobek Electrical Enterprise to bring Movenpick to Addis Abeba.

Ozzie Business and Hospitality Group facilitated the deal, negotiating on the behalf of the local property developer Yobek.

The management deal was signed on March 9, 2017, at Sheraton Addis Hotel between Berhane Gidey, founder and president of Yobek Electrical Enterprise, and Andreas Mattmuller, the chief operating officer of Movenpick Middle East and Africa.

The property, which has reached 60pc completion on its construction, is located in front of the former Imperial Hotel, around Bob Marley Square. The nine storey building, for which finishing works are currently being done, is expected to be finalized in two years, with a total investment of 1.2 billion Br.

“We decided to sign the agreement with Yobek because Addis Abeba is a diplomatic seat for many countries and the African Union”, said Mattmuller. “The stability of the country is also an attraction.”

Movenpick was chosen from 10 hotels which the property developer was dealing with, according to Kumneger Teketel, managing director of Ozzie.

“We did not simply look at the brands. We emphasised values that would count in our industry,” Kumneger told Fortune. “In this regard, Switzerland is a leading country in the hospitality industry, so the opening of Movenpick will transform the hospitality sector of the country.”

“Its work principles and discipline were the main criteria that led to choosing Movenpick,” he added.

Yobek Enterprise which is founded by Berhane was established in 2000 engaging in import and distribution of electronic devises. In addition to that, since 2012, the company has joined the real estate sector. So far, the company has built business purpose buildings on 15,000sqm of land.

“The hotel would get 20pc to 25pc share of revenues,” Berhane told Fortune.

Movenpick Hotels and Resorts which is owned by the major shareholder Movenpick Holding and Kingdom Group which serves 7.5 million guests per year. It has 83 hotels and 16,000 workers. It has 25 operational properties in Africa and 35 more hotels in the pipeline.

Movenpick Addis Ababa will have 250 rooms, six conference halls, the largest will have a capacity of 1,600 people and a parking area that can accommodate 410 vehicles at a time. When the Hotel is operational it will create 500 job opportunities.

“The expansion of this kind of international brand hotels will increase the acceptance of the country to host different international conferences,” said Ashebir Tekle, director of hotel and tourism services at Ministry of Culture and Tourism.

“In order to protect the local property owners in terms of profit, the Ministry of Culture and Tourism should revise the contract process,” said Fisseha Asres, a hotel expert who has worked in management positions in different hotels. “At the same time, the Ministry of Labour and Social Affairs needs to focus on knowledge transformation as many of the international brand hotels are still bringing managers from aboard.”

Currently, there are six operational international brand hotels, while the management deals of close to 20 international brand hotel have been signed and are at different stages of completion. Radisson Blu, Sheraton, Marriot, Hilton, Wyndham and Golden Tulip are the international brand hotels operating in the city.

The number of hotels in Addis Abeba has reached 1,129 increasing from 417 five years ago. The number of starred hotels also increased to 111 from 58 in the past five years. The amount of capital invested in hotels has grown from 80 billion Br to 101 billion Br.




Published on Mar 11,2017 [ Vol 17 ,No 879]



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