Kasada Capital Management, an independent investment platform within the Kasada Group, dedicated to hospitality in Sub-Saharan Africa has acquired the former Umubano hotel.

The development was made during a handover ceremony held on Friday, June 24.

Graced by Rwanda Development Board, the agreement contained the rebranding and redeveloping duty of the existing Umubano hotel into a 100-key Mövenpick hotel, in accordance with international standards.

The Mövenpick hotel brand is represented in more than 30 countries in Asia, Europe, Africa and the Middle East.

Managing Partner and CEOof Kasada,Olivier Granet addresses the media in Kigali on  June 24, 2022

Claire Akamanzi, the Chief Executive of Rwanda Development Board reiterated her confidence in the new investor taking over the hotel.

"Having a presence in more than 30 countries around the world, this gives us hope that you are going to come up with a business that will become a new breath of air in the Rwandan hospitality sector,” Akamanzi told the new investors.

She also hailed the financial resources and expertise to run the hospitality establishments they possess.

Kasada is acquiring Umubano hotel on a $ 40 million investment deal, with the government of Rwanda through Agaciro Development Fund.

The previous manager of the hotel had failed capacity wise which translated into legal obligations that requested them to pull out.

Commenting on the investment, Olivier Granet, the Chief Executive and Managing Partner of Kasada, expressed his interest to invest in Rwanda.

"Rwanda is a fast growing market, especially becoming a meeting destination. If this country can host one of the world’s largest gatherings on the African continent, (CHOGM), this implies the investment was long overdue,” he said.

With 16 hotels and 3,000 rooms in Sub-Saharan Africa, Rwanda is a good fit to start a business, added Granet.

The handover ceremony takes place in Kigali on June 24. All Photos by Craish Bahizi

The Kasada hotel, whose construction and refurbishments are set to end in 2025, will be branded as Movenpick Hotel.

It will be operating with the backing of Qatar Investment Authority, the sovereign wealth fund of the State of Qatar, and Accor, a world leading augmented hospitality group.

Prior to the announcement to sell Umubano hotel by RDB in 2020, the hotel had been acquired by Madhvani Group at a tune of $13 million (about Rwf11 billion) in April 2017 after years of liquidation.

It’s not publicly clear when and why Madhvani Group, a Ugandan-based conglomerate, exited Umubano, but the main issue, even with previous investors, has always been failure to make the requisite investment to expand the hotel.

The hotel has been in hands of several other investors, including the Libyan government-affiliated LAP Investments which operated it under Laico Hotels brand, before the announcement to put it on sale in 2011.

It has also previously been managed by global hotel brands including Novotel, Meridian and Accord.

A view of Umubano Hotel during a handover ceremony held in Kigali on Friday, June 24.