QG Africa Hotel LP, a Mauritius-based fund managed by QG Investments Africa Management Limited, 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 $35.9 million. The transaction closed on 31 March 2016.
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. As a long-term direct equity investor in hotel projects across sub-Saharan Africa, the investment structure targets real estate and real estate-related investments in midscale to upscale business hotels.
These are built to high quality international standards, with modern construction and design, and aim to respond to the growing need for hotel accommodation in sub-Saharan Africa.
The investment structure seeks investment opportunities in established growth markets, with a particular emphasis on prime locations within the continent’s major cities and airports.