QG Africa Hotel LP has acquired 100% interest in the 244-room InterContinental Hotel Lusaka in Zambia from Kingdom Hotel Investments for a gross consideration of USD $35.9 million. This acquisition values each room at $147,000.
The buyer is a USD $500 million Mauritius-based fund that aims to capitalize on the emerging opportunities in the hospitality sector. As a long-term direct equity investor in hotel projects across sub-Saharan Africa, they are targeting real estate and real estate-related investments in midscale to upscale business hotels.
Often considered a city landmark, the InterContinental Hotel Lusaka is situated at a prime location in Zambia’s capital. The hotel benefits from a strong image amongst international travelers, and the new owners believe it offers significant repositioning and expansion potential. Commenting on the acquisition, Jean-Claude Bastos de Morais, Founder of Quantum Global explained he was pleased with QG Africa Hotel LP’s first acquisition.
“It underlines our commitment and investment strategy for the hotel sector in Sub-Saharan Africa. The InterContinental Lusaka is strongly established locally and will benefit from the planned refurbishment that will expand and reposition the asset, thereby generating value added returns for our investors.”
Strong economic growth supported by a more transparent and relatively stable political climate has been attracting an increasing number of international business travelers to Africa, while also boosting cross-regional business traveling. These trends are driving up steady demand for increased and better business hotel accommodation across sub-Saharan Africa.
This year, there has been notable activity within the sub-Saharan hospitality space. Protea Hotels, a member of Marriott International, recently announced the signing of contracts for the development of two new hotel properties in Uganda. The Rezidor Hotel Group also recently opened a 261 room Radisson Blu Hotel in Abidjan – Cote D’Ivoire and Louvre Hotels Group inaugurated its first hotel and the first Golden Tulip in Nairobi.
QG Africa Hotel LP is managed by QG Investments Africa Management Ltd, a company of the Quantum Global group.