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Modern Hotels & Restaurants


  1. Product Description: Modern hotels and restaurants are facilities where food, drinks, bed rooms and other services are provided in an efficient, cordial and pleasant manner and style. Operating hotel and restaurant businesses require cleanliness and neatness of services to be provided and efficiency, cordiality and good manner on the part of hotel and restaurant workers.

  1. Making Potential: Except in one or two major urban centers of the region, are no modern hotels and restaurants with acceptable standards in the whole Region. Most zonal capitals and almost all woreda capitals do not have hotels and restaurants which meet minimum standards. What they can “hotels and restaurants” in these “urban centers” are filthy facilities with dirty bed rooms, unwashed bed-sheets, unhygienic food preparation facilities, workers with dirty clothes and halls and rooms filled with swarms of flies. In short, almost all the so-called hotels and restaurants found in most urban centers in the Region are well below accepted standards.


Clearly there is a need to establish modern hotels and restaurants at least in zonal and woreda capital of the region. Government employees, merchants, travelers in the Region residents and tourists will be the main customers of these catering businesses.


  1. Process: The main processes of establishing modern hotels and restaurants in urban centers of the Amhara Region include studying the market, securing land, constructing buildings, equipping and furnishing the buildings and starting the operations of the businesses.


  1. Estimated Investment: For (a) a hotel with 20-bed rooms and a restaurants, the estimated investment will be:-


§  Buildings 500 m2 at Birr 3000/m2                   = Birr     900,000

§  Machinery                                                       = Birr     300,000

§  Working Capital                                              = Birr     200,000

                                                                        Total                    = Birr 1,400,000


(b) for a restaurant that will serve about 50 people at a time, the investment will be:-

§  Buildings 200 m2 at Birr 2500/m2                    = Birr  500,000

§  Furniture and fixtures                                                  = Birr   100,000

§  Working Capital                                              = Birr     100,000

                                                                        Total                    = Birr       700,000


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  1. Benefits:- Similar to other project ideas.


  1. Location:- All zonal and woreda capitals.