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Addis Ababa, Jan. 22, 2026 — The (IFC) is considering an $80 million A-loan to support the refurbishment of the landmark Sheraton Addis and the construction of a new adjacent hotel by , according to an Environmental and Social Review Summary (ESRS) disclosed this week.
The proposed financing targets two major components: the ongoing remodeling and modernization of the 294-room Sheraton Addis, and the construction of a new 200-key hotel and private villas on 2.5 acres within MIDROC’s existing property in Addis Ababa’s Kirkos sub-city. IFC classified the project under Environmental Category B (Limited), indicating manageable and site-specific environmental and social risks.
The Sheraton Addis—commissioned in 1998 and long considered one of East Africa’s flagship luxury hotels—has been undergoing a phased refurbishment since 2023, with completion expected in 2026. The hotel is operated by , which assumed operations following its acquisition of Starwood Hotels & Resorts in 2016.
In parallel, MIDROC plans to develop the New Sheraton Addis, to be operated by Marriott under its select-service and extended-stay brands. IFC noted that the construction site is located in a modified urban setting and will not result in physical or economic displacement.
IFC Review and Oversight
IFC’s environmental and social due diligence was conducted between June and July 2025, and included site visits, consultations with MIDROC senior management, meetings with hotel operators, construction contractors, and worker representatives, as well as a broader review of labor conditions in Ethiopia’s construction and hospitality sectors.
The lender said it will continue supervision and engagement throughout construction and implementation, with additional measures to be added to the project’s Environmental and Social Action Plan (ESAP) if required.
Boost to Addis Ababa’s Hospitality Sector
The proposed investment comes as Ethiopia seeks to upgrade its high-end hospitality infrastructure amid rising international engagement, conference tourism, and business travel. MIDROC Investment Group—active across mining, agriculture, manufacturing, real estate, and services—has positioned its hospitality arm as a cornerstone of its urban real-estate portfolio.
IFC emphasized that disclosure of the ESRS is not a final approval, noting that the project remains pending consideration by the IFC Board of Directors and may be updated as additional information becomes available.
If approved, the financing would mark one of IFC’s largest recent tourism-sector commitments in Ethiopia, reinforcing the Sheraton Addis’ role as a flagship asset while expanding capacity through a new, internationally branded hotel offering.
