Irish investors back €20m hotel development in Ethiopia

A group of investors are backing a €20 million hotel in Addis Ababa in the first Irish private sector venture in Ethiopia.

Minister for Foreign Affairs Dermot Ahern turned the sod on the project during his visit to Ethiopia and Sudan this week.

The builder and property developer, Jarlath Sweeney, is leading the project, which is backed by a number of private investors.

The total investment is reported to be around €20 million. Building has already started and the project is due to be completed in two years.

Mr Sweeney's wife, Lorraine Sweeney, is already involved in the hotel business. She believes that the venture will be profitable.

Addis Ababa is short of international standard hotels. Its population is five million and it houses the United Nations Conference Centre, which is the main meeting place for the organisation of African governments, the African Union.

The Sweeney's hotel will be located in the centre of the city and will be a 168 bedroom, four-star property. The investors will choose an international hotel brand to manage the business when it is completed.

The business will employ and train 120 people, most of whom will be hired locally.

The Irish group has hired leading Ethiopian professionals and construction firms to design and build the hotel.

The investment is the latest move in a trend that has seen the Irish become the biggest investors in many property markets, particularly in Europe and the UK.

Over the last five years, Irish people have invested €15 billion in property in Europe, over €11 billion of which was in the UK. The Irish have overtaken the Americans and Japanese as the biggest investors in London property.

Cash is also flowing from the Republic to markets further afield, including the US and South Africa.

At the ceremony this week, the Minister said the move was further evidence of Irish investors spreading their interests.