RWANDA GOVERNMENT HALTS SALE OF UMUBANO HOTEL
As ties with the new Libyan government continue to improve, did news break that the Rwandan government, initially intent to sell off the Umubano Hotel – which under Gadaffi Libya had become part of his African hotel empire – when Laico Hotels failed to live up to their end of the bargain to renovate and expand the landmark hotel.
Information was brought to the board’s attention, both partners have nominated individuals to the Board of Directors, that Libya will avail the money to modernize and upgrade the hotel, apparently causing a change of heart by the Rwandan government.
Rwanda is known in the region to be an excellent investment destination but also to ensure that commitments made by investors are fulfilled and pledges turned into action, which has brought bye and large only serious investors with viable projects to the land of a thousand hills, unlike in other East African countries where often quacks are given the red carpet treatment while taking the host governments for a ride.
The Rwandan government had commissioned an international audit firm to establish the current market value of the property, ahead of a potential sale to a new investor – after clarifying that Laico would in such a case get their 60 percent share of the proceeds but this latest turn of events seems to rule a sale out as the partnerships is filling with new spirit and new life.
A renovation and modernization of the hotel will add much needed beds to cater for tourists and business visitors, as Rwanda is pushing ahead with the construction of the 250+ million US Dollar national convention centre and other measures to position the country as a hub for service industries, in particular the ICT sector and promotes tourism as a mainstream economic activity. Watch this space for regular and breaking news from Eastern Africa’s vibrant hospitality sector.