Five-star hotel will appear in Ethiopia

Chinese and Ethiopian airlines will create a joint venture to build a new five-star hotel in Addis Ababa. It is reported by the Ethiopian Edition The Reporter.

The joint venture was created by the Ethiopian Airlines in partnership with the Chinese carrier Hainan Air of China. The third party that will participate in the project is the Chinese- African Development Fund (CADF).

The hotel is planned to be opened near the international airport of Addis Ababa.

It was planned that construction works on the creation of the new hotel will start already in 2010. However, project implementation faced with problems associated with the features of local soils. Another issue that was to be resolved was the formation of the board of directors. Now, according to the representative of the Ethiopian side, Tevolde Gebermariam, all problems are resolved and construction should begin soon.

Controlling stake in the joint project will have the Ethiopian company. The size of Hainan Air of China and CADF shares is not specified.

The idea of creation the hotel belongs to the Ethiopian side. It was originally planned that the hotel will have four stars. The cost of the hotel construction is estimated at $30 million. However, later the construction plan was amended and it was decided to increase the status of the hotel.

At present China carries out active cooperation with Africa countries, including Ethiopia. The basis of the Ethiopian economy is agriculture. Therefore, among the main partners of the Ethiopian government are entrepreneurs, who are engaged in production of food. Thus, it is assumed that Chinese businessmen will form the major clientele of the new hotel.

Ethiopian hotel market attracts not only Chinese, but also a number of the world leading hotel chains. Thus, Rezidor hotel group plans to open in 2011 in Ethiopia a new hotel of the Park Inn brand.