Saudi-Ethiopian billionaire Mohammed Hussein Ali Al-Amoudi is backing a $116 million hospitality expansion in Addis Ababa as Ethiopia moves to strengthen its hotel infrastructure and capture growing demand for business and conference tourism.
The project, being developed through MIDROC Ethiopia, combines the refurbishment of the existing Sheraton Addis with the construction of a new Sheraton-branded hotel on the property.
The International Finance Corporation (IFC), the World Bank Group’s private-sector investment arm, has provided an $80 million loan for the project, with the remaining funding coming from MIDROC. IFC’s project disclosure confirms that the investment was completed on September 11, 2026.
The existing Sheraton Addis has 294 rooms and is one of the capital’s most established luxury hotels. The expansion will add a new 200-room hotel alongside private villas, significantly increasing the property’s accommodation capacity. The hotels will operate under Marriott International’s Sheraton brand.
For Addis Ababa, the investment comes as the city continues to strengthen its position as a major diplomatic and business centre in Africa.
The Ethiopian capital hosts the African Union and numerous international organisations, generating steady demand for accommodation from diplomats, business executives, conferences and international events.
The new development is therefore expected to support more than the hotel sector alone.
According to IFC, the project is expected to create formal employment and generate wider economic activity through local suppliers and businesses. Once fully operational, the combined Sheraton complex is expected to employ about 2,600 people.
The project also places greater emphasis on sustainable construction.
IFC said the development will incorporate green-building standards and EDGE certification, adding an environmental dimension to the expansion as Ethiopia seeks to modernise its hospitality infrastructure.
The investment also reflects Al-Amoudi’s long-standing presence in Ethiopia.
MIDROC Ethiopia is owned 75% by Al-Amoudi and 25% by Sofia Saleh Al-Amoudi, with interests spanning several sectors of the Ethiopian economy.
The hotel expansion comes as Ethiopia seeks to attract more private investment into tourism and services.
For international investors, Addis Ababa’s growing role as a regional business and diplomatic hub creates opportunities for premium hospitality, particularly where new hotel capacity can support conferences, international organisations and corporate travel.
The $116 million project consequently represents a broader bet on Addis Ababa’s continued economic and business growth.
For Ethiopia, its success will be measured not only by the number of new hotel rooms but also by the jobs, local business opportunities and investment activity generated around them.
As construction and refurbishment progress, the Sheraton expansion is set to become another major investment in Addis Ababa’s evolving hospitality landscape.
