Ethiopia Hotel To Make Way For New BK Group Complex In Addis Ababa

August 11, 2026
By Mintesinot Nigussie

Ethiopia Hotel, one of Addis Ababa’s oldest hospitality establishments, is being demolished as owner BK Group moves ahead with plans to redevelop the landmark property on Yohannes Street, according to a report by Addis Fortune. Demolition has already begun at the hotel’s conference hall, while crews are working in the parking area behind corrugated iron sheets surrounding the site. The main building is expected to follow within days and is unlikely to remain in operation beyond October, Addis Fortune reported.

The hotel was acquired by BK Group from the former Ethiopian Privatisation Agency in 2010 for 94 million birr. The group subsequently began planning an expansion of the property, although the redevelopment has taken more than a decade to reach the demolition stage. BK Group plans to replace the existing property with a modern complex on the site, which covers about 4,000 square metres. The proposed development is expected to occupy 5,500 square metres, according to Addis Fortune.

The group initially considered a 63-storey tower before revising the proposal to better fit the surrounding financial district. BK Group has not disclosed details of the revised design. Seven small shops adjoining the hotel are also included in the demolition plan. Tenants told Addis Fortune they had vacated the premises after being notified of the planned demolition, leaving the normally busy stretch of Yohannes Street quieter than usual.

The existing hotel remains operational for now. Its ground-plus-five-storey building has 109 rooms and employs nearly 140 people across three shifts. Construction of the replacement development will be handled by BK General Contractor, the group’s Grade One construction arm. The redevelopment is part of the wider expansion of BK Group, which has grown from its founder Belayneh Kindie’s early involvement in grain trading and agricultural exports into a conglomerate with more than 5,000 employees and 22 companies operating across seven cities. The group’s management has yet to disclose the final design or development details of the replacement complex, leaving the scale and use of the new property uncertain as demolition progresses.

Source: FSX Business News