Africa Hotel LP buys InterContinental Hotel Lusaka for $36 million

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Intercontinental Lusaka
Intercontinental Lusaka

Africa Hotel LP, a Mauritius-based fund managed by QG Investments Africa Management Ltd, a company of the Quantum Global group has acquired 100% interest in the InterContinental Hotel Lusaka from Kingdom Hotel Investments for a gross consideration of USD 35.9 million.

The transaction closed on 31 March 2016.

Kingdom Hotel Investments (KHI) is a wholly-owned subsidiary of the Saudi Arabian conglomerate Kingdom Holding Company.

Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, chairman of KHC, said: “This transaction marks yet another success for KHC’s value realisation strategy from growth market investments.”

Sarmad Zok, chairman and CEO of KHI and Member of KHC’s board of directors, said: “The sale of the InterContinental Hotel Lusaka is part of KHI’s ongoing value realisation mandate and speaks to the quality of our assets and our team execution.” 

Considered a city landmark, the InterContinental Hotel Lusaka is situated at a prime location in Zambia’s capital.

The 244-room hotel benefits from a strong image amongst international travellers, and offers significant repositioning and expansion potential.

Commenting on the acquisition, Jean-Claude Bastos de Morais, Founder of Quantum Global said “I’m very pleased with this first acquisition of QG Africa Hotel LP. 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 travellers 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.

QG Africa Hotel LP is a USD 500 million investment vehicle, which aims to capitalize on the emerging opportunities in the hospitality sector.

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24 COMMENTS

  1. Wow. What a low price for a major hotel in a prime area of a capital city. We could have put funds together with other Zambian business people. What else is under priced in Zambia?

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    • Exactly my question!!! How have you concluded that the hotel been sold at a low price bwana Genius. Lets stop this nonsense of commenting on issues we do not have facts on. There are a lot of projects in Zambia to invest in if you have funds. And currently we do not have Zambians(blacks) with such kind of financial muscle.

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    • Price its low because after privatization, hotel was NEWER restored to required standard of 5 star hotel.
      Actual cost of refurbishment will exceed purchasing price.

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    • I’m inclined to agree with One zed. Houses cost that amount in South Africa, check Camps Bay, the US, Honolulu, Caribbean etc.

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    • @One Zed, you consider that a low price? What do you know about valuation? I don’t think you do have any knowledge this is not buying a Toyota Camry from Japan and you just add Import Tax and other costs when you get to the port of entry plus Shipping. Muleikalafye ngatamukwete ifyakulanda. What you have to appreciate with the situation in our country is that those first investors did not just close down and at least another one is interested so that our brothers and sisters are still employed. Now you are talking about putting your money together to buy that, why don’t you put your money together with your friends and buy the mining deposits within ZAMBIA and save those miners that lost their jobs in the Copperbelt. I can imagine when you last went to visit Zambia, you can’t even…

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  2. Wow, we have just lost another international group. No intercontinental hotel in Zambia? Am not sure if this is good news or not

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    • In your own wisdom, when KHI initially bought InterContinental the name changed to Kingdom Hotel Lusaka? The name might not necessarily change…

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    • Best you continue being a DJ as you do not have a clue on what you are trying talk about.

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    • @Djj, please mulebelenga bwino. The new investors have bought Inters, for your information Inters is a franchise based entity I can assure you the name will remain the same, why rush to say no intercontinental Hotel in Zambia. The name has been around from the beginning, do you know how many management have come and go since its establishment. Sometimes it’s better not to comment if you do not have an idea, it shows some level of education to be very much on the base.

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    • The truth is that “the truth is that” above has no clue what he is talking about. The Intercontinetal Lusaka was wholly owned by KHI and they have sold to another private and international company which is QC Africa Hotels LP a subsidiary of QG Investments Africa Management Ltd.
      How does that become selling country properties? Shame on you and your ignorance!

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  3. is this not investment by foreigners after all had been said by HH that our country is not conducive for investment and business?

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  4. That Old Hotel needs serious refurbrishment,the carpets are so old and old fashioned outlook,displays,cabinets,bed lamps, just mention it, any given day I go to Radisson blue or if I am broke Ridgway Southern Sun.

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  5. This is clear indication that there is INVESTOR CONFIDENCE on the Zambian economy. Unless you went to a fake business school, you will argue!. One can not just wake up and invest $36m in an economy which is not doing well.

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    • @Bad Breath, for sure you have a bad breath it must be from smoking too much weed and drinking Chibuku. How can you say Zambians have been swindled again? No Zambian owns Intercontinental Hotel, get facts before you post your ignorance. This shows your level of Education. Go back home and start from Grade five then maybe you will pass to go to Grade seven. I wonder if you will.

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  6. If u know much kindly educate others without insulting them or telling them not to comment or telling them they are exposing their ignorant. It’s normal not to know something. Just bc u know something better shud not give u the right to be impolite to those u don’t know.

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  7. This is a normal business transaction as it has been bought as a going concern. Meaning the buyer will take over its assets and liabilities and the hotel will operate as usual. Employees have also been taken over. I hope this new owner will turn around the image of the hotel as its standards were rapidly going down. I am sure most frequent guests will agree with me on this note. May be the new owners should shade more light on their present and future plans in terms of expansion and refurbishments. This should have a good asset acquisition by Napsa or ZCCM-Investment Holdings or the Hostels Board. Its a prime property and its brand name is international.

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  8. For How much did ZPA privatise ICH to Kingdom Holdings or whoever? When u find out the answer that’s when you will see the big rip – off!

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