Management Operator Tie-Up for a Hotel in Uganda

Challenge

The success of the hospitality industry in any country depends on the number of travelers entering the country for leisure or business. Africa as a continent is not very well understood by many of the business owners. Establishing a positive attribute about Uganda in terms of the occupancy rate, revenue generation streams was a slight challenge because of the availability of information. Initially, the business owner wanted to lease the hotel asset to a hotel operator for a long term.

Strategy

A diversified business owner in Uganda with more than 30 years of business experience invested in constructing a state of an art hotel facility bang opposite Lake Victoria in Kampala. With a vision to partner with a well-known Hotel Operator, ICREA advised the business owner to tie up with a Hotel Operator with an international reputation who has experience in operating hotels across different geographies. Considering the needs for diversification of their business, additional revenue streams and the increasing demand for hotels in the region, we recommended the client to have a hold over the business convincing them to own the hospitality business by tying up with a management operator instead of leasing the hotel asset. 

Result

ICREA successfully assisted the business owner by tying up with a Hotel operator from United Arab Emirates on a Management Operation Model.