Kasada Hospitality Fund LP, Sub-project Galaxy

Project Description 

On June 29, 2024, the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group issued guarantees totaling US$38.8 million to Kasada Albatross Holding, a subsidiary of Kasada Hospitality Fund LP (Kasada) of Mauritius, for its equity and shareholder loan investments for the acquisition, refurbishment, and operation of the ‘Ikoyi Hotel’ in Lagos, Nigeria, as well as the construction and operation of additional hospitality, conference, event, and co-working facilities. MIGA is providing political risk insurance coverage against the risks of Expropriation (Expro) and War and Civil Disturbance (WCD) 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. In total, MIGA has issued 18 individual Contracts of Guarantees under the Master Contract framework, covering 17 hospitality projects in Côte d’Ivoire, Senegal, Cameroon, Namibia, Kenya, Rwanda, and now Nigeria. 

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 has strong environmental and social effects and strong foreign investment effect. As with other Kasada projects supported by MIGA, Kasada is pursuing IFC’s Design for Greater Efficiencies Green Building Certification (EDGE), ensuring that Sub-project Galaxy aligns with the low-carbon development goals of the Paris Agreement. In terms of foreign investment effects, the project should lead to positive demonstration effects on the adoption of sustainability practices, while contributing to the creation of a business hub through the promotion of business-related infrastructure, and mobilizing capital from foreign investors to the hospitality sector in Nigeria.