Ethiopian Airlines diversifies into hotel industry to sate growing demand for accommodation
In a bid to grow income and offer best airline package services to its customers, Ethiopia’s national carrier, Ethiopian Airlines is constructing a four star hotel costing $65 million.
Located near the airline’s headquarters, the hotel sits on 40,000sqm plot of land.
“The airline industry, and particularly Ethiopian Airline, has to expand in various business units that include availability of a standardized hotel near the airport to offer best airline package services to its customers. Bearing this in mind, and understanding the need to own such a hotel, Ethiopian Airline has decided to construct a four star hotel,” said the airline in a statement.
The airline said the four Star hotel is underway matching the level of the airline and the needs of its customers. Upon completion the hotel will have four restaurants, including the largest Chinese Restaurant in Africa for Chinese tourists, two bars, and 370 rooms.
The hotel will have two swimming pools—one half Olympic size and one small size. It will also have gift shops, duty free shops, pastries, a meeting hall that can accommodate 2,000 people, three small size meeting rooms, and a large gymnasium.
“The hotel, when open for service, will satisfy the need of our esteemed clients who would like to stay a day or more in the capital,” it further said. According to the schedule set, the construction of the hotel will be completed in December, 2017. “As can be seen, especially for citizens of Addis, the construction is growing day by day that will assure its timely completion.”
In such short period of time—seven months since launching—the construction of the hotel is being accelerated and 30 percent of the work is completed.
The hotel project is in tandem with the airline’s 15-year growth road map—Vision 2025—which anticipates transforming the airline into the leading aviation group in Africa. As part of the Vision 2025 growth strategy the airline is undertaking massive infrastructure expansion projects, including a maintenance hangar, a state-of-the-art cargo terminal and a catering facility. The hotel construction project is one of these massive expansion projects.
The total cost of the hotel project is estimated at $65 million. A Chinese construction firm, AVIC, is the contractor while Molen Associates in partnership with Sileshi Consult, an indigenous consulting firm, is consultant of the project.
The issue of the management of the hotel upon completion is under discussion with Chinese Hotel Management Group. Ethiopian said the naming of the hotel will be made following Management Contract Agreement. The hotel is generally meant to supplement Ethiopian Airlines initiative to promote Ethiopia as one of the best tourist destinations on the continent.
