Dubai firm to build two luxury hotels in Ethiopia

July 20th, 2009 | EthioPolitics.com |

By Yohannes Anberbir, Capital

Limitless LLc, a subsidiary company of Dubai World, has finally reached an agreement with Addis Ababa City Administration to lease two huge plots to construct two five star luxury hotels.

A delegation led by Sheikh Sultan Ahmed Bin Sulayem, chairman of Dubai World, had visited Ethiopia in July 2008, and conferred with Prime Minister Meles Zenawi, who warmly appreciated the Dubai giant’s interest in Ethiopia.

Limitless, which is based in Egypt, submitted a proposal to the city administration a month after DP World’s visit Ethiopia. The proposal highlights Limitless’ interest to engage in the hotel business in Ethiopia’s capital.

Officials of the city immediately invited the company to visit two key plots. Their prompt response showed their excitement at the potential investment of nearly 100 million dollars.

A garage used by the Defense Ministry located near the African Union (AU) Headquarters in front of the National Tobacco Enterprise off Roosevelt Avenue, and a plot located between the Addis Ababa Market Development and Exhibition Centre and the Confederation of Ethiopian Trade Unions buildings are the plots offered to Limitless, who were equally excited about the potential of the locations.

A few months later Saeed Ahmed Saeed, CEO of Limitless, sent project proposals, although, they did not meet the city’s requirements. This prompted Mayor Kuma Demekssa to write a letter requesting a clear proposal that explicitly indicated the company’s lease plan and construction schedule.

Reports suggested officials of Limitless were surprised with the Mayor’s request, because they thought the plots would be offered for free. In fact, Limitless was not dismayed with the request, but did send one of their management in May to discuss the issue and clarify the city’s stance. The mayor told the delegate that no plots will be offered free of lease, which pushed Limitless to accept the lease arrangement.

Now the company has signed with the lease bureau of the city to pay the amount in three installments, the source told Capital.

According to the business proposal, Limitless intends to erect a 250 room business hotel, 150 serviced apartments, as well as additional office spaces and food and beverage stores, on the 30,525 square metre plot near the AU site.

The second proposal envisages a 200 room business hotel, 50 serviced apartments, cultural and entertainment centres, as well as offices, retail and food and beverage market spaces.

This is a ‘doorway investment’ for the Gulf giant because the delegation also announced its interests in receiving a management concessions to operate the 761 kilometre Ethio-Djibouti railway lines and to install a pipeline for oil that runs from Djibouti to the Awash area, a few hundred km east of Addis Ababa.