In a landmark move poised to reshape Ethiopia’s hospitality landscape, Ethiopian Investment Holdings (EIH) has signed a $200 million memorandum of understanding (MoU) with US-based private equity firm, US International Finance Partners (USIFP), to develop a luxury five-star hotel in the heart of Addis Ababa.

The agreement was formalized on the sidelines of the 17th US-Africa Business Summit held in Luanda, Angola, from June 22 to 25, 2025. The signing ceremony was attended by Ethiopian President Taye Atske Selassie, EIH CEO Brook Taye, and USIFP President and CEO Garrett Gish.

The hotel project is part of a broader initiative by EIH to attract foreign direct investment and position Ethiopia as a premier destination for tourism, business, and international conferences. The timing aligns with Ethiopia’s upcoming participation in the African Continental Free Trade Area (AfCFTA), set to launch in July 2025.

“This partnership is a testament to Ethiopia’s growing appeal as a tourism and investment hub,” said Brook Taye. “It reflects our commitment to unlocking the country’s economic potential through strategic infrastructure and hospitality investments.”

The five-star hotel is just one component of a larger tourism development strategy. The MoU also includes plans for branded residences and related tourism infrastructure across Ethiopia. These developments are expected to create thousands of jobs and enhance the country’s capacity to host international events.

EIH is also working in tandem with Ethiopian Airlines on a new international airport project designed to handle over 100 million passengers annually. This infrastructure expansion is seen as critical to supporting the anticipated growth in tourism and business travel.

The Ethiopian government has introduced a series of economic reforms to make the country more attractive to international investors. These include liberalized currency policies, relaxed foreign ownership rules, and streamlined investment procedures. The hotel deal is one of the first major outcomes of these reforms.

Garrett Gish of USIFP emphasized the long-term nature of the partnership: “This agreement reflects our confidence in Ethiopia’s future and our commitment to supporting sustainable economic development in Africa. It also aligns with broader US efforts to deepen commercial ties with the continent.”

As Ethiopia prepares to enter the AfCFTA, the EIH-USIFP partnership signals a new era of economic diplomacy and private sector-led growth. The five-star hotel project is expected to break ground later this year, with completion targeted for 2027.

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Ethiopian Investment Holdings Inks $200M Deal with US Firm to Develop Five-Star Hotel in Addis Ababa