The Sheraton Addis plans to expand its footprint in Ethiopia’s capital with a new 200-key hotel and private villas on MIDROC’s property in Kirkos sub-city, according to an Environmental and Social Review Summary (ESRS) disclosed this week. 

The International Finance Corporation (IFC) is considering an 80 million US dollars A-loan to support the project alongside the ongoing refurbishment of the existing 294-room Sheraton Addis.

The development will be operated under Marriott’s select-service and extended-stay brands. IFC classified the project as Environmental Category B, indicating that the environmental and social risks are limited and site-specific. The lender noted that the construction site is located in a modified urban area and will not cause physical or economic displacement.

Sheraton Addis, commissioned in 1998 and long regarded as one of East Africa’s flagship luxury hotels, has been undergoing a phased refurbishment since 2023, with completion expected in 2026. The property is operated by [operator], following its acquisition of Starwood Hotels & Resorts in 2016.

IFC conducted environmental and social due diligence for the project between June and July 2025. The review included site visits, consultations with MIDROC management, meetings with hotel operators and construction contractors, discussions with worker representatives, and a broader assessment of labour conditions in Ethiopia’s construction and hospitality sectors. IFC said it will maintain oversight throughout construction, updating the project’s Environmental and Social Action Plan (ESAP) as required.

MIDROC Investment Group, which operates across mining, agriculture, manufacturing, real estate, and services, has positioned its hospitality arm as a core component of its urban real estate portfolio. The investment comes amid efforts to strengthen high-end hospitality infrastructure in Addis Ababa, supported by rising international engagement, business travel, and conference tourism.

The ESRS disclosure does not represent final approval, with the project still under review by the IFC Board of Directors. If approved, the financing would mark one of IFC’s largest recent tourism-sector commitments in Ethiopia, reinforcing Sheraton Addis as a flagship property while adding significant new hotel capacity to the city.