Kasada Hospitality Fund LP

Project Description

This summary covers equity, quasi-equity and shareholder loan (EQS) investments by Kasada of Mauritius, through a Mauritius-based Special Purposes Vehicle (SPV) established or yet to be established and fully owned by Kasada, into a Cameroon-based SPV. MIGA has been requested to provide political risk insurance coverage for up to 10 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 to be issued to Kasada, which will include a portfolio of existing and new hotels in Sub-Saharan Africa.

Kasada Hospitality Fund LP is a Sub-Saharan Africa hospitality sector-focused, private equity fund, with the backing from the Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar and Accor, Europe’s largest hotel management company. Kasada is the first large-sized, professionally sponsored, and managed hospitality investment platform in Sub-Saharan Africa. Over the next 3 years, Kasada plans to build a high-quality portfolio of hotels in Sub-Saharan Africa.

The project involves the EQS investments by Kasada, through its off-shore Mauritius-based intermediate SPV, into its respective on-shore SPV for the acquisition of a brownfield hotel  in Cameroon. The hotel was owned by AccorInvest prior to the acquisition by Kasada in December 2020.

The project is part of Kasada’s acquisition of a portfolio of existing Accor-managed hotels in Africa. Kasada’s investments will provide key operating liquidity injections to ensure the functioning of the hotels in the COVID-19 pandemic environment; and capital expenditure to refurbish/improve the properties and to achieve higher operating efficiency.

Environmental Categorization

The project is a Category B under MIGA’s Policy on Environmental and Social Sustainability. This is a joint project with International Finance Corporation (IFC); in accordance with MIGA AIP, the MIGA disclosure is linked to IFC disclosure. Click here to view the Environmental and Social Review Summary prepared by the IFC for their proposed support to the project for the acquired hotels.

Development Impact

The project will contribute to direct and indirect job creation with spillover effects across the tourism value supply chain in Cameroon. In addition to job creation and retained employment, the development impact of the project will also be driven by demand for suppliers as well as government revenues in the form of taxes and foreign exchange earnings. The project will also support overall resilience of the acquired hotels in the context of the challenges faced by the tourism and hospitality sectors in Sub-Saharan Africa due to the COVID-19 pandemic.