Piazza is the backpacker area. The hotels are cheaper and the area is pitoresque and very crowded. The name is a legacy of the Italian invasion era, and you will find some Italian cafe's and restaurants here. There are also many bars and clubs in Piazza area. The area is a "must see" when you are in Addis Ababa.
See GPS coordinate below the picture...
As the name suggests, this area is a legacy of the Italian invasion era, and it still retains a bit of an Italian flavor. Castelli's, THE best Italian restaurant, is located here, as well as countless of Italian restaurants of varying quality.
The are also may gold and silver smiths, bookstores, coffeehouses, cake shops, and tailors to be found in the winding streets of the Piazza.