Kingdom Hotel Investments signs Memorandum of Understanding to develop a 250 room hotel in Kampala, Uganda
|Kingdom Hotel Investments
("KHI"), the leading hotel and resort investment company, chaired
by HRH Prince Alwaleed Bin Talal, announces signing of a Memorandum of Understanding
("MOU") during a visit to Uganda by His Royal Highness to lease
a 15 acre site for 99 years from the government, in the centre of Kampala.
The site will be used to construct a 250 room first class hotel in the heart of Kampala for a total estimated cost of US$ 60 million. This will be KHI's first hotel in the Ugandan capital and will include many luxury facilities, including two restaurants, a coffee shop, a pool-side bar, a health club/ spa and a business centre. In addition, the property is envisioned to provide the business traveller and the local community with an array of leading edge meeting and banqueting facilities. The hotel's construction will be financed 50% from equity and 50% from debt initially, with a view to refinancing the hotel as cashflows mature three years following the opening of the hotel. The hotel is expected to open late 2009.
KHI will provide funding within the transaction to re-house the dilapidated Shimoni school, currently occupying the site.
HRH Prince Alwaleed Bin Talal, Chairman of KHI said: "We are delighted to have the opportunity to build a first class hotel in this striking emerging market. Uganda offers a unique destination where East Africa meets West Africa and we are keen to capture the rising demand from business travellers to the region. Uganda is a market with high growth potential and an exemplary stable political model."
Sarmad Zok, Chief Executive Officer of KHI, said: "KHI continues to expand its portfolio of first class and luxury hotels across emerging markets. This site will extend our footprint across the key African territories where we are keen to have a presence as foreign business and tourist travel to the region continues to grow."
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Notes to Editors
About Kingdom Hotel Investments:
KHI, headquartered in Dubai, UAE, is a leading hotel and resort acquisition and development company focused on the first class and luxury market segments in international high growth markets such as the Middle East, Asia, Africa, emerging markets and Europe. The Company has ownership interests in 28 properties in 14 countries including 17 operational hotels and resorts (3,853 rooms) and 11 hotels and resorts (3,203 rooms) currently under construction or in the initial stages of development.