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4star hotel Abdela Abamecha Riviced

4star hotel Abdela Abamecha Riviced

University: Jimma University

Course: Development planning and project analysis-II (Econ332)

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39 13.9 Stock pot(50 liters) Pcs 4 3,300 13,200 13.10 Sauce pan Pcs 3 1,800 5,400 13.11 Sauce
pot(50 liters) Pcs 5 1,800 9,000 13.12 Boiler( 30 liters) Pcs 4 6,400 25,600 Sub total 198,525
13.13 Baking pan Pcs 3 1,710 5,130 13.14 Roasting pan Pcs 5 1,710 8,550 13.15 Scale(portion)
Pcs 1 1,000 1,000 13.16 Scale Pcs 1 3,200 3,200 13.17 Measuring spoons Pcs 2 5,140 10,280
13.18 Chef’s Knife (10 in.) Pcs 5 310 1,550 13.19 Salad knife (6 in.) Pcs 2 240 480 13.20 Vegetable
knife (2in.) Pcs 3 240 720 13.21 Boning (6in.) Pcs 4 240 960 13.22 Slicer knife (12in.) Pcs 2 240
480 13.23 Bucher’s knife(12in.) Pcs 2 240 480 13.24 Cleaver (4in.) Pcs 1 240 240 13.25 Vegetable
peeler (set) Pcs 1 85 85 13.26 Cutting Board – hard rubber Pcs 4 310 1,240 13.27 Pastry wheel Pcs
1 105 105 13.28 Kitchen spoon ( perforated) Pcs 2 176 352 13.29 Kitchen spoon( solid) Pcs 5 176
880 13.30 Skimmer (long) Pcs 2 208 416 13.31 Tongs (long) Pcs 2 126 252 13.32 Grater (normal
size) Pcs 1 132 132 13.33 Strainer Pcs 2 182 364 13.34 Can opener Pcs 1 190 190 13.35 Kitchen
counter top, with cupboard unit Pcs 1 5,700 5,700 13.36 Sink unit (900 / 1600mm) Pcs 1 4,910
4,910 13.37 Wall attached shelves Pcs 2 3,500 7,000 13.38 Refrigerator (self contained)- 1500lt Pcs
2 8,400 16,800 13.39 Hot cupboard (warmer) Pcs 2 1,500 2,600 13.40 Toaster Pcs 1 850 1,700
13.41 Ice cream machine Pcs 1 3,700 3,700 13.42 Ice cube machine Pcs 1 4,940 4,940 13.43
Dishwashing machine Pcs 1 2,175 2,175

40 Sub-Total 319,851 14 HOUSEKEEPING Pcs 14.1 Cleaning trolley Pcs 3 2,450 7,350 14.2
Supplies and linen storage shelf unit Pcs 1 3,712 3,712 14.3 Wet and dry floor cleaning machine Pcs
2 2,710 5,420 14.4 Vacuum cleaner (upright) Pcs 3 2,310 6,930 14.5 Mop trolley with squeezer Pcs
3 35 405 14.6 Buckets big size Pcs 5 82 410 14.7 Buckets small size Pcs 10 71 710 Sub Total
21,937 15 Stand By Generator Set With Canopy And Accessories(100KVA) Unit 3 3,500,000 Sub
Total Total 9,092,264 Contingency (10%) 909,226 Grand Total 50,000,745 4.3. Land,
Building and Civil Works Land requirement by the envisaged hotel is estimated at 5000 m2. The
hotel floor area is estimated to cover 3000 m2 and the remaining 2,000m2 is left for
construction of, generator house, guard house, parking lot, children play ground, swimming pool
garden, shops and walk ways. The type of buildings and its corresponding civil construction cost is given
on Table 4.2. Table 4.2 TYPE OF CONSTRUCTION AND ITS RATE (BIRR/m2) LIST OF BUILDING AND CIVIL
WORKS AND THEIR COSTS Sr. No. Building Total Area (m2) Rate per m2 (Birr) Total cost (Birr) 1
Hotel building 3,000 6,500 19,500,000 2 Swimming pool, park and 2000 4000 8,000,000

41 recreation center, walk ways etc Sub -Total 5000M2 10,500 27,500,000 .00 Contingency /10/
2,750,000.00 Grand Total 50,250,000.00 As shown on Table 5.2, the total cost of building and civil
work is estimated at Birr 50,250,000 According to the Federal Legislation on the Lease Holding of
Urban Land (Proclamation No 272/2002) in principle, urban land permit by lease is on auction or
negotiation basis, however, the time and condition of applying the proclamation shall be
determined by the concerned regional or city governments depending on the level of development.
Moreover, advance payment of lease based on the type of investment ranges from 5% to 10%. For those
that pay the entire amount of the lease will receive 0.5% discount from the total lease value and those
that pay in installments will be charged interest based on the prevailing interest rate of banks.
Moreover, based on the type of investment, two to seven years grace period shall also be provided. The
lease price is payable after the grace period annually. Regarding, the terms and conditions of land
lease the OROMIYA Government have adopted Article 6 of the Federal Legislation with very minimal
changes. Therefore, for the purpose of this project profile since the project is engaged in social service,
99 years lease period, 50 years lease payment completion period, 5% down payment and seven years
grace period is used. Accordingly, the land lease cost of the project, at rate of Birr 30 per m2 for 99
years of holding is estimated at Birr 27.37 million. Assuming 5% of the total cost ( Birr 6.37 ) will
be paid in advance as down payment and the remaining Birr 21 million will be paid in equal
installments within 50 years, the annual lease payment is estimated at Birr 120,095.

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Project name: ABDELA A/MECHA 4STAR INTERNATIONAL /TOURIST HOTEL BUILDING Promoter: - MR.
ABDELA A/MECHA Submitted to:- Oromiya Investment and Industry bureau, JIMMA CITY
ADMINSTRATION, Land Administration Agency & Investment office August 17, 2022 JIMMA TOWN

PROJECT PROPOSAL FOR THE CONSTRUCTION OF

4STAR INTERNATIONAL /TOURIST /HOTEL BUILDING

CONTACT PERSON AND DETAILS

ABDELA A/MECHA 4 STAR INTERNATIONAL

/TOURIST HOTEL BUILDING

Name: - MR. ABDELA A/MECHA

[OWENER]

Address: - JIMMA CITY

Telephone : 0970600021

Email: ------------------------

MAN POWER ....................................................................................................

ORGANIZATIONAL STRUCTURE ........................................................................

4 REQUIREMENT .............................................................................

FINANCIAL REQUIREMENT AND ANALYSIS............................................................

6 FIXED INVESTMENT .....................................................................................

6 FINANCIAL ANALYSIS AND STATEMENTS ..................................................

6.2 BANK LOAN REPAYMENT SCHEDULE ...............................................

6.2. EXPENDITURE /OPERATION COST.............................................................

6.2. DEPRECIATION SCHEDULE ............................................................................ - 6 UNDERLYING

ASSUMPTION ........................................................................ - 6 SOURCES OF FUND - 6. FINANCIAL
STATEMENT.............................................................................

6.5 INCOME LOSS/STATEMENT

6.5 CASH FLOW STATEMENT.......................................................................

6.2 BALANCE SHEET.......................................................................................

FINANCIAL ANALYSIS .....................................................................................

ENVIRONMENTAL IMPACT OF THE PROJECT .......

I EXECUTIVE SUMMARY
Project name: ABDELA A/MECHA 4 STAR INTERNATIONAL /TOURIST HOTEL BUILDING project Type :
4STAR INTERNATIONAL /TOURIST HOTEL BUILDING Nationality: Ethiopian Project Owner: - MR. ABDELA
A/MECHA Proposed Project location: South West Oromia region Jimma town AWETU MANDERA KEBLE
in front of Sefy Hotel Jimma city rental residential municipality houses based on rule and regulation of
city redevelopment policy. Total investment Cost: 72,000,000 ETB is required from this amount 30% or
birr 21,600,000 ETB from owner equity and the rest 70% or birr 50,400,000 from bank loan. Project
composition: 4STAR INTERNATIONAL /TOURIST HOTEL Building (G+10) used for Hotel Service and the
premises shall contain such amounts as determined hereunder of main and secondary entrances, exits,
reception areas, dining areas, kitchen and service areas, lounge areas, cloakroom facilities, bathrooms
and toilets, guest bedrooms, staff accommodation, storage areas, together with sufficient corridors and
stairways to ensure proper circulation of air, proper movement of people and proper access to the
various units. Premises Required Area: 7500m2 which is private property of project owner’s. The hotel
will create employment opportunities for 120 persons; permanent employee 110 and temporary worker
10 for service delivery. To get Construction permission letter project owner’s ABDELA A/MECHA will
asked permission by submitting this project proposal to JIMMA city administration, JIMMA city land
management agency and investment office based on rule and regulation of investment development to
start building construction soon.. Social and Economic Benefit: provide better Hotel service,
Employment opportunities, generation of income and benefits for the Local people. This profile
envisages the establishment G+10 Building of an international / tourist standard 4star hotel with a
capacity of 150 rooms.

GENERAL BACKGROUND

The Ethiopian Government launched a programme for the privatization of state owned enterprises in
early 1995. Accordingly, the Ethiopian Privatization Agency (EPA) was established to implement the
privatization programme in the same year. The Government has laid the ground to privatize most of the
state owned enterprises to the private sector. Accordingly, EPA has received a stock of 113 state owned
enterprises from the government for privatization in the years ahead. As indicated in EPA's work
schedule, out of these enterprises, a total of 43 states owned enterprises are in the pipeline for
privatization in the near future. Most of these enterprises fall under manufacturing, construction,
agriculture and agro-industry, hotels, transport, trade, and mining sectors. There is a strong
commitment from the Government side to fully privatize state enterprises in the coming in few years.

Ethiopia is one of the African countries that possess the highest number of UNESCO World Heritage Sites
in Africa, with 8 sites spread throughout the whole country, and therefore has great potential to develop
itself as a tourist destination. The Government of Ethiopia (GOE) has prioritized tourism development in
its development strategy, PASDEP1, to optimize the existing tourism resources as a driving force of
economic growth for the whole country. The Prime Minister, Mr. Abe, has also mentioned the important
role of tourism development in poverty reduction in “Tourism Paradigm” document, which was
prepared several years ago with support from United Nation World Tourism Organization (UNWTO).
Ethiopia is a strategically important country in the Horn of Africa for most countries and therefore, many
international meetings and conferences are held in Ethiopia. This creates a huge demand for
accommodation at an international standard and even an increase in sucha demand is expected in the
future because the importance of Ethiopia has been growing and many international organizations have
been continuously strengthening their institutions and augmenting their personnel in Ethiopia. The
supply of accommodation, however, is far below the level needed to meet the demand. There are only
two five-star hotels in Addis Ababa and hotels of an international standard can rarely be found in the
regions, even where there are international tourism attractions, such as Lalibela. Many hotels and
lodges are under construction, stimulated by the initiative of GOE and the sharp rise in demand. Since
the hotel industry can create job opportunities for so-called blue

collar workers, the development of the hotel industry is benefits not only the tourism sector but also
poverty reduction. On top of the importance of the industry itself, since hotels are at the center of
supply chains, such as food, handicrafts and tour operations, focusing on the hotel industry provides an
occasion to overview those associated industries at the same time. There exist seven associations
related to tourism, e. Ethiopian Hotel Operators’ Association, Ethiopian Tour Operators’ Association, and
Ethiopian Eco-tourism Association, to name three. The Ethiopian Hotel Operator’s Association was
established 10 years ago and now consists of 36 hotels. The operation cost is basically covered by the
fee from the members but additionally donors and international organizations such as GTZ and Initiative
Africa are providing support. The Ethiopia Hotel Operators’ Association has been working very closely
with GOE at both the Federal and Regional level and is playing a crucial role in public-private
partnership. The export value of tourism is equivalent to 130million US$ according to a study of the
World Bank. This figure includes direct expenditure made on such aspects of the industry as transport,
accommodation, services and goods. In addition to the direct expenditure, the indirect expenditure,
such as purchase of foodstuff and other items by hotels from local suppliers, or the economic activities
induced by tourism, such as consumption made by the workers involved in the tourism industry must be
significant. Notably, one of the biggest hotels in Addis Ababa purchases most of its foodstuff,
(vegetables, meats, milk and some cheese) consumed at the hotel’s restaurants, from the local market.
This significantly reduces the leakage of the profits although most of the goods, from electric bulb to
shampoos, are imported from abroad. According to the interview we made, the hotel spends 3 million
birr (equivalent to 34,500 US$) per month for local purchases, which is equivalent to approximately 2-
3% of the total export value of Ethiopia In general, a stable macroeconomic condition leads to economic
and business growth and develops investors’ confidence. The Premises shall comprise one building or
buildings which are on one site and which are physically linked by well-lit, covered or insulated walkways
which said buildings shall share common access and egress and the premises shall contain such amounts
as determined hereunder of main and secondary entrances, exits, reception areas, dining areas, kitchen
and service areas, lounge areas, cloakroom facilities, bathrooms and toilets, guest bedrooms, staff
accommodation, storage areas, together with sufficient corridors and stairways to ensure proper
circulation of air, proper movement of people and proper access to the various

1.3 DESCRIPTION

The long-term goal of the project is become the best choice in JIMMA and its surrounding areas as well
as foreigner by creating a differentiated experience capitalizing on personal service. The proposed
project will have a total area of 3000m2, designed to reader a modern hotel service business, which will
in turn plays significant role towards solving shortage of standard Hotel service in JIMMA town. The
historical nature of the town as business unique location in one of the most attractive parts of the
occurrence of the town along the along the Ethiopian South West laid a fertile ground for future
promising growth of the town. The Premises shall comprise one building or buildings which are on one
site and which are physically linked by well-lit, covered or insulated walkways which said buildings shall
share common access and egress and the premises shall contain such amounts as determined
hereunder of main and secondary entrances, exits, reception areas, dining areas, kitchen and service
areas, lounge areas, cloakroom facilities, bathrooms and toilets, guest bedrooms, staff accommodation,
storage areas, together with sufficient corridors and stairways to ensure proper circulation of air, proper
movement of people and proper access to the various units. The premises shall be of Substantial and
durable construction, structurally safe and in good repair throughout. Floors, walls and ceilings
throughout the premises shall be of suitable type and design to maintain the highest standards of
hygiene. The premises shall contain effective means of natural lighting and ventilation. The premises
shall have in the public rooms and bedrooms a means of space heating capable of maintaining at all
times a minimum room temperature of 20 degrees centigrade. Access and egress to night club(s) or
discothèques must be located in such a way that it does not interfere or cause any inconvenience to the
hotel residents. For new Building’s entrance(s) and exits for night club(s) or discothèques must be
located away from the main entrance to the hotel. The assessment is divided up into “quality areas” that
represent aspects of the business that contribute to the quality of the guest experience. Each quality
area contains a series of minimum requirements. These are aspects of the facility and service that must
be in place in order to meet visitors’ fundamental requirements. These minimum requirements must be
met to ensure eligibility for a star grade. 1 .PROJECT RATIONALE

Internationally the economic growth this country is experiencing, the good governance created and
even if the town is in its nascent stage of development these project are the first in kind in the town are
feasible and would be a model development in promoting and attracting different urban investments. In
order to respond to the created environment the town is in need of major, basic and feasible urban
projects to be developed. The existing promising investment opportunities, the demands of service
needs along with relatively sound investment support made by the government in such kinds of feasible
projects, compelled the project promoter to initiate investing in the town to accommodate the existing
demand of these services in the town and the surrounding areas. The mismatch between the demand
for and supply of such kind of services in easily observed in the town. Therefore, the existing shortage or
absence in the supply of these services, along with its commercial and administrative access, better
location and infrastructure access, escalating trend of urbanization and business activities, thus it is with
such reason that this project is identified and proposed and assumed to be more profitable. In general,
the country’s decentralized state based economy, privatized and free market economy; good
governance creates a favorable environment for the development of investment for private investors.
1.5 SIGNIFICANCE OF THE PROJECT The envisaged project deemed to add to the economic development
of the nation in general and zone and town in specific with following ways: A. Source of Revenue As
public policy of any nation, the government collects different forms of taxes from different business
organizations and individuals. Among the different forms of taxes, business income taxes, payroll
income tax and VAT are collected from undertaking business activities. Therefore, the building will serve
as sources of revenue for the town as well as for the region. B. Employment opportunity One of the
problems that our country faced is unemployment. Therefore, the current objective of the government
is working on tackling the problem of unemployment and fostering the development process either
through creating self employment or employment in other

Topographically, Jimma city area might be divided into escarpment and alluvialplains. Elevation within
the town boundary ranges from the lowest 1720 meter above sea level of Jimma Airport to the highest
2010 meter above sea level of Jiren (a place where the palace of king Abajifar of Jimma found). The work
force in the city is well discipline and easily trainable and has great desire to work in an enterprise. In
addition, the city administration has launched extensive training programs and vocational and technical
skills development so as to provide the growing industry with trained human resource The proclamation
which has declared in 2003 (1995 E) helped to establish the urban of the region in a new form.
According to the proclamation article No. 65/1995 Jimma has got formal recognition as city
administration from Oromia regional Government. The administrative Council comprises the mayor, the
deputy mayor and the rest heads of different sectors that are responsible for the mayors and all of them
are implement the government policy. The mayor is the head of the city administration. Since Jimma
recognized as a City Administration, the mayor and his cabinet members and the Municipality Manager
has been leading the city administration as per rules and regulations issued by Federal and Regional
Government. The city divided into 17 kebeles /sub city administration units/ which are responsible to
the City Council & the City Administration Office. The main economic activity of the city is dominated by
commercial activities (trade & delivering service) and manufacturing enterprise. The local Urban-rural
exchange in Jimma and its surrounding has contributed significant business activity. This is because of
the commercial Orientation of farmers who have consumption pattern similar to that of the urban. No
large-scale industrial activity in the town, however, small-scale industries and cottage industries like
grain mills, wood and metal workshops, Coffee hullers, hollow block manufacturing, bakeries and
pastries are actively running. The major manufacturing activities that account 70% are grain mills and
wood works. Jimma Abba Jiffar is widely known by its woodcarving and sculpture products. The 1st
grade standard asphalt road which stretched 352km connects Jimma & Addis Ababa. In addition, Jimma
to Mizan and Jimma to Gambella asphalt road construction have underway.
Currently, around 12 modern internal asphalted road has already begun by the amazing participation of
various parts of the society, neighbor districts and who loves the city with more than 98 million birr
capital outlay. Jimma Airport hosts six weekly reliable flights from Addis Ababa to Jimma. Currently, with
132 million birr cost, Jimma International Airport Extension Project is underway. In the city there are
sufficient mini buses and city buses which provide transport services that would enable one to move
within the town. In 2009 academic year education coverage of the city has reached 98%. Before
fourteen years there were only 11 primary schools and 2 secondary schools in the town. During1994-
2008, the number of schools in the city has shown a radical change indicating an average growth rate of
8% per annum. Besides, Jimma University, the prominent higher education of the country is currently
more than 10,000 students are enrolled learning in different fields study. Educational provision of TVET
in Jimma City began in 2001 with the objective to produce intermediate trained manpower with
different skills so as to enable them to have job opportunity in the governmental institutions, and to
initiate entrepreneurships which will work not only to the city but also create a citizen which will
contribute to the aggregate economy of the country. Since the establishment of TVET program in
2001up to 2009 3,565 students had trained in different vocation. Currently there are two governmental
& eight private Vocational education training, TVET centers are found in Jimma. The community is
interested with educational exchange with twin city because the community needs to know new things
especially with technological advancement, different research on bio- technology, agro industry, animal
farm, health and so on. There for, the specific implementing area will Awetu mandera keble infront of
Seyef hotel.

INDICATORS FOR SUCCESS Project owner will be asked Jimma city administration construction
permission letter to start building construction soon. There are numerous indicators for the success and
effectiveness of the project which include the following:

The administration of Jimma city has provided a peaceful and secure environment for the project.

The Central Government Representative and Regional Government Representative of Jimma is

MARKET STUDY AND SERVICE CAPACITY

A. MARKET STUDY
Past Supply and Present Demand According to the information obtained from the Ministry of Culture
and Tourism, the total number of hotels in Ethiopia is 373 and rooms and beds are computed to reach
10,930 and 14,535, respectively in year 2014. In Addis Ababa, there are 57 hotels and 3,153 rooms and
4,391 beds. Details are given in Table 3. Table 2 TOTAL NUMBER OF HOTELS, ROOMS AND BEDS IN
ETHIOPIA IN 2014

Sr. No. Regional State

No Hotels

No Rooms

No Beds

1 Amhara 46 1,293 2, 2 Afar 9 174 221 3 Benishangul 6 122 133 4 Dire Dawa 10 293 400 5 Gambela 1 22
44

6 Harari 9 241 301 7 Somali 11 215 245 8 Oromiya 136 3,259 4, 9 SNNPRS 53 1,083 1, 10 Tigray 35 1075
1, Sub-Total 316 7,777 10, 11 AddisAbaba 57 3,153 4, GrandTotal 373 10,930 14, Source: Ministry of
Culture and Tourism

In case of star hotels, the total number at national level is 58 with the capacity of 3,405 rooms and about
5,116 beds, while in Addis Ababa there are 28 star hotels and 2,282 rooms and 3, beds (see Table 3). The
remaining 29 hotels in Addis Ababa are recommended - to - tourist hotels that may be grouped in the
near future to the star rating system upon upgrading their services to the level of the required
international standard. In case of JIMMA there no international standard Hotel which is full fill minimum
requirements of star hotel. Table 2 TOTAL NUMBER OF STAR HOTELS, ROOMS AND BEDS IN ETHIOPIA IN
2014 Sr. No. Regional State No. of Star Hotels

No. of Rooms No. of Beds

1 Amhara 6 248 467 2 Oromiya 5 232 454 3 SNNPRS 4 134 225 4 Tigray 9 320 449 5 Dire Dawa 3 83 123
6 Harari 3 106 149

Sub-Total 30 1,123 1, 7 Addis Ababa 28 2,282 3, Grand Total 58 3,405 5, Source:- Ministry of Culture and
Tourism Although a relative increase of investment is observed in the hotel & tourism sector, Even there
are still only two five star hotels, six four star hotels and 14 three star hotels in Addis Ababa. Hence, the
City requires more hotels of international standard to accommodate the increasing number of tourists
and conference participants of the African Union, UNECA, and other randomly occurring meetings at
different times. Therefore, In Jimma city still there is no international standard three star hotel. The
hotel industry consists of many different services, including accommodation, restaurants, cafes and
catering. The market for the hotel industry, especially classified hotels in a developing country like
Ethiopia, is closely linked to the tourism industry, because a majority of consumers for the sector
services come from international tourists. According to the United Nations Statistical Commission,
Tourism comprises the activities of persons traveling to and staying in places outside their usual
environment for not more than one consecutive year and staying at least 24 hours in the country visited.

taking year 2005 figure (227,398) as a base, tourist arrival is forecasted. Moreover, in order to compute
the unsatisfied demand the total annual capacity of international standard hotels in JIMMA, which
computed to be 597 rooms per annum, is taken as the existing capacity. Table 2 TOTAL INTERNATIONAL
AND NATIONAL TOURIST ARRIVALS IN JIMMA

Year NUMBER Growth Rate 2002 200,000 4. 2003 207,000 4. 2004 209,000 5. 2005 266,000 5. 2006
257,000 5. Source;-Jimma City Culture And Turism Biro The projected tourist room requirement, which is
calculated by taking the projected tourist arrival and multiplying it by the average hotel stay of tourists
(4 days), the unsatisfied demand, is shown in Table 3. Table 2 EXISTING HOTEL CAPACITY, PROJECTED
AND UN SATISFIED DEMAND Year Projection of Tourist Arrival

Room Night Demand

Existing Hotels Annual Capacity

Un Satisfied Demand
2008 286,456 716140 597,140 119, 2009 309,372 773430 597,140 282, 2010 334,122 835305 597,140
381, 2011 360,852 902130 597,140 488, 2012 389,720 974300 597,140 603, 2013 420,898 1052245
597,140 728, 2014 454,570 1136425 597,140 863, 2015 490,935 1227338 597,140 1,008, 2016 530,210
1325525 597,140 1,165, 2017 572,627 1431568 597,140 1,335, 2018 618,437 1546093 597,140 1,518,
2019 667,912 1669780 597,140 1,716,

2020 721,345 1803363 597,140 1,930,

2021 1803363 1903363 1963363 1,980,

Accordingly, based on the market study and other considerations a three star hotel with room capacity
of 375 to 1000 is recommended. Of these factors, the most important to have influence is population
growth and the level of income. The currently expanding coffee processing industry in the town and
around the town has been inviting skilled and unskilled labor forces to the town; in addition, the number
of both government and non government offices has been increasing. Above all the increase in the
number of population of the town increases for the provision of different services. As clearly indicated in
the introductory part of this proposal, and Jimma city in the dynamically growing town of south West
Oromiya. Though the market demand gap for HOTEL use building in Jimma as clearly understand there is
wider gap for such demand as many merchants, organizations and higher institution are flouring to the
town every day. From prior business experiences, the demand of 4STAR HOTEL use building in Jimma is
very high and hence the demand and the supply gap is very wide. 1. FUTURE MARKET OR DEMAND OF
THREE STAR HOTEL Jimma town is situated in very centre of Ethiopian Coffee production area which is
highly known for its quality coffee and special flavor. These days Jimma is brand name Commercial route
of South Western Ethiopia. Jimma town is also a major business center and commercial route that
attracts thousands of business travelers. These are also the most important groups of potential
customers that include both the local and foreign tourists and the modern business community who
choose services that range from economic to high class standards. These groups would also choose a
healthy comfortable climate that combines a more traditional type with that of modern bedrooms
restaurants and cafeterias. Even though when compared with similar towns in the region Jimma seems
to have no developed HOTEL INDUSTRY, the existing supply is far behind the growing demand for
standard service. Hence, the project will solve the serous demand problem in the town. Over the last
decade, there has been a significant growth in the number of local and international trades across the
country. This increase is mainly associated with the stimulation of economic activist and partly due to an
increase in the flow of international and local traders in to the town. Since Jimma is an important
commercial center in addition there is a significant increase in

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