Belayeh Kindie Group is to rent the one time city’s landmark hotel, Global Hotel, as a second branch of Ethiopia Hotel.
The hotel will be the group’s second hotel investment in Addis Ababa, and one of the many the Group is acquiring as it expands its presence in the hospitality sector.
The two parties are in the process of finalizing the agreement, which will be renewed upon completion of an agreed-upon timeline and based on the profitability of the business. Details of the agreement, including contract periods and rental prices, remain undisclosed as the agreement hasn’t been finalized.
The rental of Global Hotel by the group will mean the re-opening of the hotel since it was closed down mid last year due to poor performance.
Once agreements are finalized between the hotel and the Group’s management, it is expected to resume services in the coming few weeks as Ethiopia Hotel’s second branch, according to the management of the group.
“Global Hotel is not operational now, thus we are giving it a try by renting it,” Deksios Bezabeh, the group’s corporate general manager, noted. “The hotel is well known in the hospitality business, which we believe we can use for our plan of investing more in the hotel industry.”
The group is also looking for other lucrative real estate, according to Deksios.
Following the group’s acquisition of 60-year-old, 100-room Ethiopia Hotel in 2009 for 94 million Birr, it had also acquired Adama Ras Hotel in Adama, Oromia Regional State.
At an initial cost of 60.1 million USD, the group is currently constructing a 190-room Hilton Resort Hotel & Spa in Bahir Dar, Amhara Regional State.
On the other hand, the group is about to embark on the expansion of Ethiopia Hotel as long-time tenants of adjacent Bego Adragot Building have vacated the property last July.
With an ambitious plan of putting up a five-star hotel in the vicinity of the National Theatre, the group is in the process of securing land.
Three blocks of 25 to 30 story buildings in the Piassa section of Addis Ababa, in which it hopes to house group headquarters, malls, and a hotel facility, are also in the pipeline, as per information provided by the manager.
“We have bigger plans to expand our hospitality business,” Deksios said.