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Marriott International and Ethiopian Developer, Sunshine
Construction,
Enter Agreement for Mangement of Two Properties Currently Under
Construction;
Both Located in Addis Ababa
May,
2012 - Marriott International, Inc. (NYSE:MAR) and Ethiopian
developer Sunshine
Construction have announced a deal that will inject ETB 1 billion into
the
local economy over five years.
Under the agreement, Marriott International will manage two
properties
currently being built by Sunshine Construction – a Marriott Executive
Apartments for extended stay travellers and a quality tier Courtyard by
Marriott branded hotel. Both will be located in Addis Ababa and are
scheduled
to open in 2014 and 2015 respectively. This marks Marriott International’s first foray into the
country and is a
sign of the company’s confidence in the market. Speaking at the World Economic Forum (WEF) currently taking
place in Addis
Ababa, Alex Kyriakidis, President and Managing Director of Marriott
International Middle East and Africa, said that there is a direct
correlation
between a country’s ability to grow and the entrance of hotel providers
into
the market. “Hotels bring new untapped revenue into the market by
boosting
tourism numbers and dollars, building infrastructure and creating jobs,
which
all resonate throughout the economy as a whole.” Marriott International has projected that by 2018, the new
Courtyard by
Marriott branded hotel’s total revenue will be ETB 242 million (US$ 13
million)
per year – equating to ETB 1 billion (US$ 65million) injected into the
economy
over five years from only one 209- room hotel. “The fundamental demand generators that drive our industry are
alive and
well in this country,” Kyriakidis said. “Marriott International’s
investment
into this region represents the economic realisation for the need for
hotels –
countries need to invest in infrastructure, accommodation and airports
to
create jobs to grow the economy. “By taking on these two properties Marriott International is
demonstrating
its confidence in the market – that it will grow and that the economy
will move
forward at a staggering pace.” As Africa's second most populous country, Ethiopia has 85
million
inhabitants and a population forecast to grow at over 2% per year to 95
million
by 2015. This is matched by a fast growing economy due to improved
agricultural
performance. Investments into infrastructure, aimed at increasing
tourism
numbers that have been hindered in the past by limited hotel capacity,
are a
featured component of the government’s poverty reduction strategy paper. Travel and tourism currently contribute US$2.8bn, around 10%,
to the annual
GDP and this is predicted to rise by 5.4 percent. “A lack of quality supply of hotel rooms in the market
combined with growing
airline numbers, a rising economy and a growing urban population give
us strong
confidence in this city and market,” Kyriakidis said. Through the appropriate training institute, local residents
will learn what
it means to be part of Marriott International, with training beginning
one year
prior to the opening of the hotel and ongoing throughout their career. “These aren’t just jobs Marriott International is creating,
these are real
career opportunities with real potential for growth,” Kyriakidis said.
“Creating these ongoing opportunities and investing in the development
of local
people on the ground, who will not only learn transferable skills, but
in turn
pass on that knowledge, will strengthen the Middle Class in this
region. The
fact that they do this while earning a salary is what will support the
growing
economy and encourage further growth.” As well as Ethiopia, Marriott International is focusing its
growth on Benin,
Gabon, Ghana, Nigeria and Rwanda, with a number of new properties
scheduled to
open over the next five years. “We are thrilled by the robust expansion
of our
African hotel portfolio,” said Kyriakidis. Marriott International, Inc. (NYSE: MAR) is a leading lodging company based in Bethesda, Maryland, USA with more than 3,700 properties in 73 countries and territories and reported revenues of over $12 billion in fiscal year 2011. The company operates and franchises hotels and licenses vacation ownership resorts under 17 brands, including Marriott Hotels & Resorts, The Ritz-Carlton, JW Marriott, Bulgari, EDITION, Renaissance, Autograph Collection, AC Hotels by Marriott, Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, TownePlace Suites, Marriott Executive Apartments, Marriott Vacation Club, Grand Residences by Marriott, and The Ritz-Carlton Destination Club. There are approximately 300,000 employees at headquarters, managed and franchised properties. Marriott is consistently recognized as a top employer and for its superior business operations, which it conducts based on five core values: put people first, pursue excellence, embrace change, act with integrity, and serve our world. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. |
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