Project Description
This summary covers equity and shareholder loan investments, by Kasada Hospitality Fund LP (Kasada) of Mauritius, through Condor KGL Limited of Mauritius, into Condor KGL Rwanda Holding Limited and Condor KGL Rwanda Limited, both entities incorporated in Rwanda. MIGA has been requested to provide political risk insurance coverage for up to US$28.3 million against the risks of expropriation, transfer restriction and currency inconvertibility, and war and civil disturbance for a period of up to 15 years.
The project consists of (i) the acquisition and refurbishment of the Umubano Hotel in Kigali, Rwanda (the “Hotel”), and its conversion to a 138-key Mövenpick hotel; and (ii) the development of a MICE facility including a Wojo co-working space, a health club and conference and events space (the “Project”). The acquisition of the Hotel was completed in June 2022.
This project is part of a Master Contract issued to Kasada in 2021, which covers a portfolio of existing and new hotels in Sub-Saharan Africa. Kasada Hospitality Fund is a private equity fund with a focus on the Sub-Saharan Africa hospitality sector. The fund is owned by the Qatar Investment Authority (Qatar’s sovereign wealth fund) and Accor (the 6th largest hotel management company in the world) as limited partners. Kasada expects to establish a portfolio of more than 20 hotels (estimated 4,000 hotel keys) requiring a total investment (debt and equity) of 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 Rwanda. The project intends to become ‘EDGE Advanced’ certified, thereby leading to positive demonstration effects in the Kigali hotel market on the adoption of sustainability practices around greenhouse gas emissions savings, water consumption and waste, energy saving and building management systems. The project will support the tourism and hospitality sectors in Rwanda that have been significantly impacted by the COVID-19 pandemic. The renovation, expansion, and repositioning of the Hotel as an upscale destination will contribute towards the provision of critical economic infrastructure for the development of leisure and business activities. Finally, the Hotel will contribute to demand for domestic supplies, as well as government revenues through payment of taxes, and foreign exchange.
