Kasada Hospitality Fund LP

Project Description

This summary covers equity and shareholder loan investments, by Kasada Hospitality Fund LP (Kasada) of Mauritius, through Flamingo Kite ABJ Limited of Mauritius, into 3A HOTEL DEV SARL, incorporated in Côte d’Ivoire. MIGA has been requested to provide political risk insurance coverage for up to US$26.5 million against the risks of expropriation, transfer restriction and currency inconvertibility, and war and civil disturbance for a period of up to 15 years.

The project consists of the greenfield development of a 100-keys Ibis Styles hotel and a 70-keys Adagio extended stay hotel on an 8,251 square meters (sqm) parcel of land in Angré, in the Cocody district of Abidjan, Côte d'Ivoire. The hotel complex is also envisaged to include   conferencing and events venue and co-working space and will be located adjacent to a new mixed-use retail shopping center.

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 Côte d’Ivoire. The project intends to become ‘EDGE’ certified, thereby leading to positive demonstration effects in the Abidjan hotel market on the adoption of sustainability practices around greenhouse gas emissions savings, water consumption and waste management, energy savings and building management systems. The project will support the provision of quality economic infrastructure for the development of business activities and will contribute to the demand for domestic supplies, as well as government revenues through payment of taxes, and foreign exchange. MIGA’s support to the project is expected to help mobilize capital from foreign investors to the hotel sector in Côte d’Ivoire, as the sector recovers from the effects of the Covid-19 pandemic.