New Agreements to Increase Addis Abeba’s International Hotel Brands to Double Figures


The partnerships between the international brands and local companies were all consulted on by Calibra Hospitality




Four hotel management agreements were signed last week, which could push the total number of international branded hotels in Ethiopia up to 10. These were in addition to two agreements signed last weekend, with all six agreements negotiated by Calibra Hospitality Consultancy & Business Plc on behalf of the Ethiopia companies.

The agreements involve the local companies Eniy General Business, ADM Business Plc, Great Abyssinia Plc and Noah Real Estate, alongside the international companies – Accor Hotels Groups, Wyndham Hotels Groups and Best Western International.

Accor manages 3,600 hotels with 470,000 rooms, across 14 brands in 92 countries. It  signed an agreement with Eniy Real Estate for the management of the Pullman Addis Hotel, which will be housed in the building Enyi is constructing in front of Zemen Bank on Tito Street. The hotel will have 330 rooms, two restaurants, two bars, seven board and meeting rooms, one connectivity lounge, a fitness and spa centre and a swimming pool, according to Neway Berehanu, Calibra’s managing director. The hotel is expected to open in 2017.

Best Western International’s deal with Great Abyssinia Plc involves the latter’s 11-storey building located next to Medhanialem Mall behind Edna Mall in Bole District, for a hotel that will be named Best Western Plus and will have 168 rooms. A sister company of Great Abyssinia, Noah Real Estate, also signed an agreement with the same company for another hotel that will be called just Best Western in another building on the same street near Beer Garden. The two hotels are expected to be opened by 2015 and 2016, respectively. Best Western International manages 4,000 hotels in 100 countries.

Great Abyssinia Plc was established in 2003, growing from a sole proprietorship that was established in the 1990s. The Company includes Abyssinia Coffee, Abyssinia Tea, Abyssinia Springs and Techno Printers.

The other management deal was signed between Wyndham Hotels Groups and ADM Business Plc for the establishment of the Ramada Addis, which will have 136 rooms – of which eight will be suites. The management agreement was signed for 15 years and the hotel will hire 250 people.

Wyndham, a US company, manages 7,540 hotels, with 650,000 rooms, in 71 countries. Its deal with ADM involves a building that is under construction in Bole District behind Saay Pastry, a short distance from Bole International Airport. The construction of the building, now 90pc complete, is taking place on a 3,000sqm plot of land with a capital of 500 million Br, according to Dawit Bati, who signed on ADM’s side, representing Adugna Bekele, major owner of ADM. Ramada Addis is expected to open in 2015, with two restaurants, three conference halls, a gymnasium and parking lot that can accommodate 100 vehicles.

ADM, which was established by six members five years ago and is engaged in the hospitality business, requested an additional 2,000sqm plot of land for phase two of the hotel project, Dawit said.

Tsemex Hotels & Business Plc signed a similar agreement with the Intercontinental Hotels Group (IHG) for the establishment of Crowne Plaza Addis, last Sunday, September 28, 2014, at the same time it was granted a 9.5 million dollar loan from the World Bank’s International Finance Corporation (IFC). A day before, Aschalew Belay Hotel Projects also signed an agreement with the Louvre Hotel Groups for the establishment of the Golden Tulip Addis.

These four new hotels, in addition to the Crowne Plaza, Golden Tulip Addis, and the existing Hilton, Sheraton, Radison Blu and Marriott, will make Addis Abeba a city with 10 international branded hotels.

All the six new management deals, which were announced at the African Hotel Investment Forum (AHIF), held between September 29 and October 1,2014 at the Sheraton Addis Hotel, were consulted on by Calibra on the behalf of the local partner. Calibra was established five years ago by two individuals – Neway Berehanu, as managing director, and Yonas Moges, as managing partner of the Company – with the aim of providing consultancy services to the hotel industry.



By FASIKA TADESSE
FORTUNE STAFF WRITER

Published on October 05, 2014 [ Vol 15 ,No 753]


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