Kasada Hospitality Fund LP
On July 15, 2022, the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group issued a guarantee totaling US$18 million to Condor Kite WDH Ltd, a subsidiary of Kasada Hospitality Fund LP (Kasada) of Mauritius, for its equity investment into Safari Hotels Limited in Windhoek. The MIGA guarantee will cover the investment against the risks of losses emanating from an event of Expropriation, Transfer Restriction, and/or War and Civil Disturbance for a period of up to 15 years.
Kasada’s investment consists of the acquisition of an established Safari hotel complex and conference center located in Windhoek, Namibia, and its subsequent refurbishment and conversion into a dual branded 199-key Ibis Styles and 215-key Movenpick hotels (both Accor Hotel Brands), along with an upgraded Conference Center, the largest in Namibia. The hotel complex is 10 minutes away from the city center, close to commercial districts and adjacent to the regional Eros airport, which has direct flights to some of the major Southern African cities.
Kasada is an independent investment platform dedicated to investing in the hospitality sector in Sub-Saharan Africa, advised by Kasada Capital Management. Kasada was launched with the backing of Accor, a French multinational company and one of the world’s largest hospitality groups, and Qatar Investment Authority, Qatar’s sovereign wealth fund. Over the next few years, Kasada intends to build and acquire a significant portfolio of hotels across Sub-Saharan Africa (SSA).
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.
Kasada’s investment comes at a pivotal time in the hospitality sector where significant capital injections are required to maintain and reopen hotels. Such capital is not readily available in the international market due to perceived risks in the SSA tourism sector, particularly given the current tough global economic conditions triggered by the Covid-19 pandemic and the ongoing war in Ukraine. Kasada’s investment will allow the hotels and conference center to sustain jobs which may have otherwise been terminated due to the current challenges in the sector. Kasada’s commitment to pursue IFC EDGE certification will result in positive Environmental and Social effects through energy and water efficiencies. Finally, Kasada’s investments in the conference center and related meeting and exhibition facilities will also develop the local business hub.