By Berhane Hailemariam
The local property developer invested 300 million Br on a 115-room hotel
Bon Hotels, a South Africa-based hotel management company, has partnered with a local property developer to triple its presence in Addis Abeba.
Ayal Tizaz, a local businessman, invested 300 million Br to construct the seven-storey hotel. The property, located close to German Square on Guinea Bissau Street, has 115 rooms. Ozzie Business & Hospitality Management Group, founded by Kumneger Teketel, facilitated the deal, negotiating on behalf of Ayal Tizaz, who is in the freight transport and export business.
Bon Hotels, founded in 2012, will manage the hotel for 15 years. The property, which sits on a 1,500sqm plot, is expected to be open within two years. The property will host two restaurants, three conference halls with the capacity to hold up to 400 guests, bars, a swimming pool and a parking lot with 70 spaces.
The management fee for Bon, which will operate the new hotel under its trademark, will be 15pc to 20pc of annual revenues. The owners and management company consider the property to be a four-star hotel.
The construction of the hotel was started three years ago, according to Kumneger, managing director of Ozzie. The skeleton of the building is already complete, and the finishing work on the interior are underway, reported the manager.
Bon initiated its first management deal in Ethiopia three years ago, through local property developer Tadal Trading Plc, with the opening of the 72-room Bon Plaza around Rwanda, on African Avenue. A few months ago, it entered into another deal with Bahiru Abraham, a local businessman, to operate an 82-key hotel just next to Dembel City Centre, on African Avenue, Bole corridor. The hotel is expected to open its doors for service in the next two months.
Bon Hotels franchises and manages over 20 properties in South Africa, Namibia, Ethiopia and Nigeria. Half of the hotels are still under construction and at different stages of completion.
The entrance of a new international chain hotel into the capital will play a significant role in increasing the number of global business travelers, according to Fisseha Asres, managing director at Afro Hospitality Management & Support, a hotel consultant with a wide range of experience in the industry, and serves in different management capacities including at Intercontinental Addis and Hilton Addis.
“This will simultaneously benefit businesses in the value chain,” he said, “air and land transport, hotels and restaurants and tour operators will benefit from this.”
The new agreement between Bon and Ayal Tizaz will be an addition to the three dozen plus management deals completed between local property developers and global hotel management companies.
There are seven properties managed international companies, consisting of Best Western Plus Bole, Radisson Blu, Sheraton Addis, Marriot Executive Apartments, Hilton Addis, Ramada Addis and Golden Tulip. The other hotels are under construction and at different stages of completion.
Tourism income in the city was reported to be one billion dollars during the last fiscal year. Addis Abeba is home to 1,129 hotels with 8,000-10,000 rooms, of which 164 properties are recognized as star-rated.