Kasada Hospitality Fund LP

Project Description

This summary covers equity and shareholder loan investments by Kasada Hospitality Fund LP (Kasada) of Mauritius, through its wholly owned subsidiary Falcon NBO of Mauritius, for the acquisition of Golden Jubilee Ltd of Kenya.

MIGA has been requested to provide political risk insurance coverage for up to US$31.5 million against the risks of expropriation, transfer restriction and currency inconvertibility, and war and civil disturbance for a period of up to 15 years. This project is part of a Master Contract issued to Kasada Hospitality Fund LP on June 30, 2021.

Kasada Hospitality Fund is a private equity fund with a focus on the Sub-Saharan Africa hospitality sector. The fund is owned by Accor (the 6th largest hotel management company in the world) and the Qatar Investment Authority (Qatar’s sovereign wealth fund) as limited partners. Over the next three years, Kasada expects to establish a portfolio of up to 20 hotels requiring a total investment (debt and equity) of approximately US$1 billion.

Environmental Categorization

The project is a Category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the project’s Environmental and Social Review Summary and Environmental and Social Action Plan.

Development Impact

The project will contribute to direct and indirect job creation with spillover effects across the tourism value supply chain in Kenya. The project will also support the adoption of sustainability practices, given the commitment to achieve IFC’s EDGE certification (which ensures improved energy and water efficiency). The project will also lead to positive demonstration effects through the promotion of business services and business-related infrastructure. MIGA’s support to the project is expected to help mobilize capital from foreign investors to the hotel sector in Kenya, during a time of critically low tourism due to the effects of the pandemic.