Midroc Ethiopia gets $80 million loan to revamp Sheraton Addis hotel

Midroc Ethiopia, the hospitality arm of MIDROC Investment Group (MIG), Ethiopia’s largest private sector conglomerate owned by billionaire Mohammed Al-Amoudi, has received an $80 million long‑term loan to support the refurbishment of the Sheraton Addis (Luxury Collection) and the development of a new Sheraton hotel in Addis Ababa.

The disbursement, structured as an A-loan, was disclosed by the World Bank Group’s private-sector arm and will support the $116 million landmark Sheraton Addis and the development of a new Sheraton-branded hotel. 

Business and financial context
Tourism and travel account for roughly 10% of Ethiopia’s economic output and support approximately 3.5 million direct and indirect jobs across the economy, according to project information referenced by IFC and associated announcements. The sector is increasingly viewed as a diversification channel for foreign exchange generation, services growth, and private-sector expansion.

The investment also aligns with the World Bank Group’s Country Partnership Framework for Ethiopia, which identifies tourism as a strategic growth sector, while supporting the institution’s gender agenda through increased access to formal employment opportunities.

This project by MIDROC will generate over 9,400 direct and indirect jobs, strengthen tourism flows, and create formal employment opportunities for young people and women in one of Africa’s largest labour markets.

Midroc Ethiopia expands Sheraton Addis footprint
The financing agreement marks one of IFC’s largest recent commitments to Ethiopia’s tourism and hospitality industry and forms part of a broader effort to expand high-quality accommodation capacity ahead of growing international demand. 

Under the agreement, funding will support modernisation work at Sheraton Addis, a Luxury Collection hotel, and the construction of a new Sheraton hotel adjacent to the existing property. Project disclosures indicate the broader development carries an estimated total cost of up to $116 million. The new development is also expected to introduce some of Ethiopia’s first green-certified hotel assets, supporting more sustainable construction standards in a market where environmentally certified hospitality projects remain limited.

Ownership and stakeholders

MIDROC Ethiopia serves as the hospitality arm of MIDROC Investment Group, one of Ethiopia’s largest privately held conglomerates, with interests spanning agribusiness, manufacturing, mining, construction, commerce, and hospitality. The group is controlled by Mohammed Hussein Ali Al-Amoudi, who holds a 75% stake, while the remaining 25% is owned by Sofia Saleh Al-Amoudi. Hotel operations are overseen under the management framework of Marriott International, which took control of Sheraton-branded properties following its 2016 acquisition of Starwood Hotels & Resorts.

For Al-Amoudi, whose business footprint spans Africa, Europe, and the Middle East, the investment underscores a sustained commitment to Ethiopia as the country pursues fresh private capital to stimulate economic recovery and long-term growth. The transaction reflects rising investor interest in hospitality-linked infrastructure as Ethiopia expands private-sector participation and strengthens tourism as a source of employment and foreign exchange.

For Addis Ababa, the expansion of premium accommodation capacity could enhance readiness for large-scale international events and growing conference-related demand. More broadly, the investment signals continued confidence from development finance institutions in backing domestic platforms positioned to convert capital deployment into job creation and wider economic impact.