Intercontinental Addis, a new 5-star hotel that is set to open this month September, 2008, will add another hotel of such category from the currently existing two in the country. Owned by Simachew Kebede, an Ethiopian national, who has so far invested 320 million birr in the first phase, ambitious project, had to work hard alongside Fisseha Asres to maske this a reality.
Fisseha together with Simachew incepted the project of the hotel and will become the first Ethiopian general manager of a 5- star hotel. Located in the Kazanchis area on a 2400 square meters plot it constitutes professionals in the service sector. The hotel is fitted with state of the art technology, with 152 rooms of which 33 are suites, 119 deluxe rooms as well as top range presidential rooms. Our reporter Tedla Yeneakal had a chance to chat with both individuals about the hotel. Excerpts:

Local Investors in the Hotel Industry

Could you tell us your general business background, outlining sectors you were involved in?
Simachew Kebede- For 15 years, I have been involved in various businesses including the import and export sector, especially in coffee export. My company has been awarded in the year 2002 by an international organization for best quality coffee at a ceremony held in Paris. Moreover, I import about 1,000 cars a year on average for the local market. My company has a very positive working relationship with banks operating in the country. For example, I have been awarded as best client of Dashen Bank during their award of ten years of operation. In addition the Addis Ababa Administration revenue bureau has awarded me as the best tax payer for the Ethiopian millennium year award. I was also working in Dubai and have been involved in the real-estate business.
What made you decide to involve in the hotel industry?
Simachew- I initiated the project with Fisseha Asres, who is now appointed as general manager of my Hotel Intercontinental Addis. He has a sound experience in the field, having worked for the Hilton Addis in a managerial post for 10 years. I have traveled abroad and experienced high standard hotels; I wanted to bring that into my country. In Dubai, real-estate companies involve in several sectors, one of which is the hotel business. The idea to bring that reality to our country developed and I waited for the time to have the appropriate resources to start up a hotel from the scratch. We discussed with Fisseha thoroughly on how to go about it and invited Bayable Consulting to do the required feasibility study, and the design was done by Wossen Architects, both local firms. The finishing and final work was done by a foreign firm. In its first phase investment we had acquired a 2,400 square meters plot and the hotel was built at a cost of 320 million birr. Then we obtained another 3,500 square meters plot for our second phase project, which will cost us 200 million birr more.
What features makes your hotel unique as compared to other hotels in the country?
Fisseha Asres- The hotel is special as it has been well thought out starting from its feasibility study and includes features that are of an international standard. It is equipped with state of the art technology. For instance, we have installed Fidelio software for property management purposes that is to be the third in our country. Fidelio is in use by the Sheraton Addis and the Hilton Addis hotels only. Our hotel has rooms designated for disabled people, a swimming pool on the top floor, electronic door keys with 14 programs, 4 elevators, one of which is for the staff. All rooms are equipped with safe deposit boxes, mini bars and wireless internet connection. As it is globally exercised in the international hotel business, we have prioritized safety in selecting products that serve the purpose such as smoke detecting devices in the rooms and 90 minutes fire proof doors, carpets, curtains and mattresses. In total the hotel has 152 modern rooms, out of which 33 rooms are suites and 5 deluxe suites that are top presidential rooms. We have two big restaurants; one of which is open 24 hours. The other special feature of our hotel is that we have designated special rooms for physically challenged guests, an international standard hotel requirement. We also have a wine bar as well as a pool bar at the top floor, near the swimming pool. On the top floor, we have an executive health club that has a spa with beautiful view of the mountains. There is a clinic in the hotel for the staff and guests. It is not only the physical appearance of the hotel that makes Intercontinental Addis unique; our management staff are professionals with international experience. And is the first hotel in the country, entirely covered by a CCTV system installed for security purposes. Each room is equipped with an LCD TV hotel-interactive system that has interface with our Fidelio software.
The Ministry of Culture and Tourism is devising new criteria for determining standards of hotels in the country. How do you view this measure in improving the hotel industry?
Fisseha- I have not seen the new proposal but I know the old standard and proudly say that our hotel meets and exceeds it. Even with the new standard we firmly believe that we will meet the criteria for a five-star hotel. The tourism inflow in the country is increasing, so the government must give more attention to the hotel industry. Moreover, we have an advantage as Addis Ababa is the third diplomatic city of the world, we can highly benefit not only from the tourists coming to the country to visit but also from conference tourism. From my previous experience, there have been shortages of rooms when there were large meetings in are held our city. The quantities of hotels have grown but their qualities need special attention. That's why I think the government is devising the new criteria. And I believe not only the government but also hotel owners association should analyze the new criteria before it is approved.
What does your second phase project entail?
Simachew- There will be about 7,000 square meters parking space for the hotel in its second phase, two basements that are of 3,500 square meters each. There is also a construction of a building that's part of Intercontinental Addis; it will house offices and a large ballroom that will accommodate up to 1,000 people. The design was done by another local firm. The second phase investment is difficult to finalize but we have budgeted roughly 200 million birr. We expect to start construction in mid September, along with the soft opening of the hotel. The hotel has already created a job opportunity for 200 people in its first phase.
What must the government do to improve the hotel industry?
Fisseha- Ethiopia has a rich history and famous attraction sites. We should use this to increase the revenue generated from the tourism sector. The government should urge regional and global organizations to hold conferences here, so that we can benefit from conference tourism as well.
Don't you find it difficult to get skilled labor for your hotel, as there are few schools that specialize in the hotel management?
Fisseha- In Ethiopia, when new hotels are constructed, schools focusing in the hotel management must be built alongside. There is only one government hotel training school in Addis Ababa. Recently, Hawassa and Gonder universities have opened departments in hotel management but this is not enough and the quality must be improved. Especially at mid and top management level, there is limited professional force. For instance, I will be the first Ethiopian general manager of a five-star hotel. Hotels such as the Sheraton Addis and Hilton are managed by foreigners because there are no Ethiopians trained at that level. The government jointly with the private sector must work together to narrow the gap. We plan to train our staff abroad to acquire the international standard skills.
What other areas of business are you involved in? And what are your future business plans?
Simachew- We have already leased a 50,000 square meters plot of land around Hayat area, to embark in real-estate. The designs of the houses are already completed and we plan to start construction of 140 houses shatty. We expect to spend 450 million birr in their construction. For the future, I plan to have a chain of hotels throughout the country. When more and more Ethiopians invest in the sector, we will attract other foreigners to be involved in the sector, hence increasing the competition. And we should be dedicated, hard working and interested in what we do, regardless of the field, to be successful. We should avoid working just for the sake of earning a salary.