Mogadishu's Leader in Luxury

Green Paradise Hotel, a woman-owned hospitality enterprise in Mogadishu’s Green Zone, has been a beacon of perseverance and growth in Somalia’s challenging business environment. Founded in 2011, the hotel provides a range of services, including overnight accommodation, conference halls, dining, and catering to both local and international guests. Under the leadership of Kaltun Abdiaziz Adam, the business has thrived, significantly expanding its operations and economic impact, thanks in large part to financial support from One Earth Future’s Shuraako program.

Overcoming Challenges and Seeking Growth
When Kaltun took over the management of the hotel in 2012 after the passing of her husband, she faced immense challenges. Raising her children while managing the business required a lot of strategic decision-making. Between 2016 and 2019, she undertook major renovations to improve the hotel’s infrastructure and service quality, earning her the "Best Manager" award from the SABA Award organization.

However, as competition grew and customer expectations evolved, Green Paradise Hotel needed further investment to maintain its competitive edge. Local banks offered loans with rigid repayment terms that made expansion difficult. Recognizing the need for a flexible financing partner, Kaltun turned to Shuraako.

Impact of Shuraako's Investment:
In July 2021, Green Paradise Hotel secured a loan from the Nordic Horn of Opportunities Fund through Shuraako. This investment enabled the hotel to embark on a transformational journey, bringing substantial economic benefits and business growth:

1. Job Creation and Workforce Expansion

   • Before the financing, Green Paradise Hotel had 27 employees. Today, it boasts a workforce of over 60, reflecting a 122% increase in job opportunities.

   • The investment facilitated the hiring of both temporary and permanent staff, contributing to local employment and economic stability.

2. Revenue and Business Growth

   • The hotel experienced a significant increase in sales, allowing for sustained profitability and expansion efforts.

   • The introduction of high-quality services comparable to a 5-star hotel attracted more clients, further boosting revenues.

3. Infrastructure and Service Enhancements

   • Upgraded conference halls, modernized hotel rooms, and improved facilities enhanced guest experiences.

   • The hotel acquired two armored vehicles to safely transport guests outside the Green Zone, launching a new vehicle rental service.

   • Additional security measures, including enhanced CCTV surveillance, strengthened the hotel’s reputation as a safe and reliable establishment.

4. Expansion into New Markets

   • With growing demand from international organizations and government agencies, the hotel is now expanding to a second location within the Green Zone.

   • The ability to provide high-end accommodations and conference facilities has positioned Green Paradise Hotel as a preferred venue for major events and business meetings.

 A Financial Model That Works
One of the critical factors behind the hotel’s success was the flexible financing model provided by Shuraako. Unlike traditional banks, Shuraako offered a one-year grace period before loan repayment commenced, allowing time for renovations and operational adjustments. Additionally, the five-year repayment plan provided financial stability and eased cash flow management, enabling the hotel to reinvest in further growth.

Empowering Women Entrepreneurs
Kaltun’s journey is an inspiration to many women in Somalia. As a widow and business leader, she understands the struggles of female entrepreneurs who face economic and social challenges. She advocates for increased support for women-owned businesses, emphasizing that access to financing is a critical factor in enabling women to achieve economic independence and contribute to their communities.

With the support of Shuraako, the hotel has not only strengthened its market position but also created jobs, introduced new services, and expanded its footprint in the Somali hospitality sector. As Green Paradise Hotel continues to grow, it stands as a model for other businesses striving to overcome challenges and achieve long-term success in Somalia’s evolving economy.