Addis Ababa, Ethiopia -Â The World Bank Groupâ€™s International Financial Corporation (IFC) is considering an investment of 19 million dollars for the completion of an international standard hotel in Lideta District. The total cost could add up to as much as 37 million dollars.
If the investment materialises, it will be concluded with Tsemex Global Enterprise Plc and its subsidiary, Tsemex Hotels and Business Plc, both owned by Rezene Ayalew, a local business man, and his children. The request for investment was made by Tsemexâ€™s owners, who have already erected the structure of the 11-storey building in Lideta at the site of the old Etfruit facility, a source close to the business said.
The IFC says that the purpose of its â€œinvestment is to help to address the shortage of hotel rooms of an international standard in the capital city, Addis Abebaâ€. The two sides are working on the deal with the understanding that the hotel will be managed by the International Hotels Group (IHG) and be branded Crown Plaza Addis.
If it works out, Crown Plaza could be the fourth international brand hotel in Ethiopia, after the Hilton, Sheraton and Radison Blu. Sunshine Construction also has a deal with Marriott, which is yet to bring to service the hotel that goes by that name.
The IFCâ€™s experts have travelled from Washington five times, the source said, to determine if the loan should be granted. If the IFC decides to make the loan, Tsemex Hotels and IHG simply need to sign a deal to finalise the full management contract, the source said. This could happen sometime in March. The IFC could make its final decision known on March 17, 2014, according to its website. Read more at Addis Fortune