Kasada Hospitality Fund LP | Multilateral Investment Guarantee Agency | World Bank Group
Project description
This summary covers equity and shareholder loan investments, by Kasada Hospitality Fund LP (Kasada) of Mauritius, through Condor KGL Limited of Mauritius, in Condor KGL Rwanda Holding Limited and Condor KGL Rwanda Limited, two entities incorporated in Rwanda. MIGA has been requested to provide political risk insurance of up to US$28.3 million against risks of expropriation, transfer restriction, and currency inconvertibility, as well as war and civil unrest for a period of up to 15 years.
The project consists of (i) the acquisition and renovation of the Umubano Hotel in Kigali, Rwanda (the “Hotel”), and its conversion into a 138-key Mövenpick hotel; and (ii) the development of a MICE facility comprising a Wojo coworking space, a health club, and a conference and events space (the “Project”). The acquisition of the hotel was finalized in June 2022.
This project is part of a framework 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 focused on the hospitality sector in Sub-Saharan Africa. The fund is held 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 plans to establish a portfolio of over 20 hotels (estimated at 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 Policy on Environmental and Social Sustainability. Click here to view the environmental and social review summary and the environmental and social action plan for the project.
Development impact
The project will contribute to the creation of direct and indirect jobs with spillover effects on the entire tourism supply chain in Rwanda. The project intends to become “EDGE Advanced” certified, thus leading to positive demonstration effects in the Kigali hotel market on the adoption of sustainability practices regarding greenhouse gas emission savings, water consumption and waste, energy savings and building management systems. The project will support the tourism and hospitality sectors in Rwanda which have been significantly impacted by the COVID-19 pandemic. The renovation, expansion and repositioning of the hotel as a high-end destination will contribute to the provision of essential economic infrastructure for the development of leisure and business activities. Finally, the hotel will contribute to the demand for domestic supplies, as well as to government revenue through the payment of taxes and foreign exchange.
Kasada Hospitality Fund LP | Multilateral Investment Guarantee Agency | World Bank Group
