Adama (Nazareth) is going to be the fourth regional city to welcome an international franchise hotel following the management agreement between Louvres Hotel Group and Gonde Import & Export Enterprise to operate Golden Tulip brand at the cost of half a billion Birr.
The agreement was signed between Bezu Beyen, CEO of Gonde, and Alain Sebah, president of Golden Tulip for French-Speaking Africa & East Africa on October 19, 2017, at the Golden Tulip Addis Hotel.
The five-star hotel, Golden Tulip Adama, will be the third hotel of the French-based Louvres Hotel Group in Ethiopia. The group had previously partnered with Begez Business Group to run the Royal Tulip Plaza Addis Abeba Hotel under Luxury Style Collection. It had also partnered with Aschalew Belay Hotel Projects for the operational Golden Tulip Hotel that has 90 rooms and is located at Bole.
Covering a total area of 6,215sqm, the hotel is built on 4,015sqm of land. It will include facilities such as 137 bedrooms, two restaurants, a bar, a coffee shop, multipurpose assembly hall, spa, gymnasium, swimming pool, children’s playground and a nightclub. The meeting hall will have the capacity of accommodating 1,000 attendees.
The new hotel will have a basement, ground floor, mezzanine and two private floors. It will also have terraces, a green roof terrace and two buildings that will be connected through a bridge.
The structural work of the hotel has been finalised and is in the preparation of finishing works. The five-storey hotel, which is expected to be operational within two years, is located on the highway that links Addis to Djibouti and the surrounding regions.
So far, the company has invested 90 million Br and expects to make the hotel fully operational within two years. It also aims to create job opportunities for 581 individuals.
The agreement between the two will last for 15 years. Most of the international franchise hotels established in Ethiopia take 15pc to 20pc share from the revenues of the local hotels.
“We have many international clients in our trading business who ask us to make a booking for them in hotels with an international standard,” said Bezu. “And the absence of such hotels in Adama initiated me to consider opening an international brand hotel.”
This is the first time that Gonde Import & Export has engaged in the hotel business. Gonde engages in import and export, and agro-processing. It was founded in 1998 by Bezu Beyen. It currently employs more than 500 permanent and temporary staff.
“This plan [expansion] reflects our trust in the hospitality business potential of East Africa,” said Sebah.
Golden Tulip has a presence in 15 African countries with 45 hotels.
Ozzie Hospitality Management Group negotiated on behalf of the property developer for six months. Ozzie has previously concluded eight deals to set up Radisson Blu, Mövenpick Hotels & Resorts, Four Points by Sheraton, BON Hotel Addis Abeba, Royal Tulip, Dusit Thani, Radisson Blu Bishoftu and Park Inn by Radisson Addis Abeba.
“As the Group is aggressively expanding, Ethiopia, specifically Adama will benefit from its royalty members,” said Fisseha Asres, managing director of Afro Hospitality Management & Support, who has also worked in different management positions at the Hilton and Intercontinental Addis hotels.
Louvres, established in 1976, recently acquired an India based international brand named Sarovar Hotels and it now administers 1,175 hotels under nine brands including Golden Tulip.
“Out of the total number of tourists arriving in the country, 85pc stay in Addis Abeba, and such international hotels will enable us to realise our strategy in expanding tourist destinations in the country,” said Yohannes Tilahu, CEO of Ethiopian Tourism Organisation (ETO).
“The opening of this hotel will make the vibrant business city, Adama, a great Meeting, Incentive Travels, Conference & Exhibition (MICE) destination and will boost the conference and leisure business,” said Kumneger Teketel, managing director of Ozzie.
With the current deal, Adama becomes the fourth regional town after Hawassa, Bishoftu and Langano to harbour an international brand hotel.
Hilton Hawassa Resort & Spa is under development by Sunshine Business Plc with 169 guest rooms, while Santa Maria Real Estate & Hotels Plc is working to set up the 122-room Wyndham Garden Langano. And the recent deal between Adulita Conference & Spa Resort Hotel and Carlson Rezidor Hotel Group to establish the 152-room Radisson Blu Bishoftu Conference & Wellness Destination made Bishoftu the third town to have an international brand.
The country, which attracted close to 900,000 tourists during the past fiscal year, has over 30 international brand hotels, six of which are currently operational.
The five-storey hotel building will have terraces, a green roof terrace and two buildings that will be connected through a bridge.
Source : Fortune