The First Group and Midroc Investment to develop 10 hotels across Ethiopia under new agreement

The First Group and Midroc Investment Group have signed an agreement in 2026 to develop 10 hotels across Ethiopia, the companies said, marking a large-scale expansion of hospitality infrastructure aimed at supporting tourism growth and business travel demand in the country.

The agreement was announced this week, with both companies confirming plans to roll out multiple properties in key cities and destinations across Ethiopia. The developments are expected to be delivered in phases under a long-term partnership framework.

Agreement covers 10-hotel pipeline

The First Group and Midroc Investment Group said the deal includes the development of 10 hotel properties across Ethiopia, forming part of a broader strategy to increase branded accommodation supply in the country. The companies did not disclose the total investment value of the agreement.

Officials confirmed that the hotels will be developed under internationally recognized standards, with a mix of business and leisure-focused properties. The agreement outlines collaboration on planning, development and operational execution.

No specific timeline for completion of all 10 hotels was disclosed, but the rollout is expected to occur over multiple phases.

Focus on key Ethiopian destinations

The companies stated that the hotels will be located across major urban and tourism markets in Ethiopia. These include the capital Addis Ababa as well as other cities with growing economic and tourism activity.

Site selection is based on demand for accommodation driven by business travel, government activity and international visitor flows. Officials said the projects aim to support infrastructure development in emerging hospitality markets within the country.

The developments are expected to contribute to increased room inventory in areas currently facing supply constraints.

Development and operational structure

Under the agreement, Midroc Investment Group will play a key role in local development and asset ownership, while The First Group will provide expertise in hotel development and management. The companies said the properties will be operated in line with global hospitality standards.

Each hotel is expected to include guest rooms, food and beverage outlets and meeting facilities. Operational systems such as reservations, staffing and service delivery will be aligned with international practices.

No details were released regarding individual hotel sizes, brands or staffing levels.

Expansion strategy in Africa

The First Group said the agreement aligns with its strategy to expand its footprint in Africa through partnerships with regional investors. Ethiopia has been identified as a priority market due to its economic growth and increasing connectivity.

Midroc Investment Group stated that the collaboration supports its long-term investment plans in the hospitality sector. The company has been involved in multiple development projects across Ethiopia.

Executives from both companies said the partnership is intended to strengthen the country’s tourism and business travel infrastructure.

Market context and current status

Ethiopia has seen growing interest from hospitality investors as part of broader efforts to expand tourism and improve accommodation capacity. Industry participants said demand for internationally managed hotels has been increasing in recent years.

The 10-hotel development agreement remains in the planning and initial execution phase as of 2026, with further announcements on project timelines and individual property details expected as development progresses.