The Rwanda Hotel Group Members are begging the financial institutions to extend a grace period of about one year to the members that acquire loans before they commence the repayment process. The Rwanda Hotel Group is an association that unites the medium sized hotels in Rwanda some of which offer accommodation to the Rwanda gorilla safari undertakers.
Unfortunately, this sounds like impossibility since the banks have
already issued notices for auctioning of the properties of the
defaulting members out to the Medias for the property to be sold. A
range of the members of Rwanda Hotel Group are working tooth and nail to
ensure that their investments are not taken off cheaply like that to
the highest bidders while the Banks are trying hard to recover their
range of billions of francs that are caught up in the non-performing
loans in possession of these hotel establishments among which are
overnight spots for the travelers on gorilla safaris in Rwanda
The Private Sector Foundation is in between the two parties all of
which are its members and intends to bring them to table and discuss the
perfect way forward putting in consideration of its interest in seeing
the business succeed and not fail. Mr. Ruzibiza Stephen who is the Chief
Executive Officer of the Private Sector Foundation affirmed the
arrangement and noted that there are 20 hotels appealing to be spared
Among the Hotels being auctioned includes the
Eldorado whose owner is also the leader of the Rwanda Hotel Group Mr.
Mupenda. The Hotel is positioned at 27 KG Street along 8th Avenue behind
the Rwanda Development Board – the body that overlooks Rwanda safaris including gorilla trekking safaris in Rwanda.
The Eldorado Hotel features 17 workers whose jobs are now at stake as
they are not assured of being retained when the new management comes in.
The Hotel that is estimated to be valued at Rwf350 million including
the land and building is being auctioned off at Rwf200m to get back the
loan amount of Rwf260 million which was acquired from GroFin about ten
years back when the proprietor was upgrading the facility from an
apartment to a hotel to accommodate the range of guests including those
on gorilla safari in Rwanda.
facility is the Alpha – Palace which is a three star hotel featuring a
considerable level of comfort and design. Though the facility is valued
at Rwf2 billion but is apparently troubled with the Rwf500 million
credit facility that was acquired from the Bank of Kigali to upgrade the
facility ahead of Rwanda Development’s Board Hotel Classification
exercise. Though the Hotel managed to secure the stars they have not yet
transformed in to the business to bail the facility from the credit
scandal. The failure of the hotel is blamed on the reduced clientele
arising from the stiff competition in the neighborhood.
This move is
seen as an unfortunate encounter for the home owned enterprises that
are starting to develop in the still young tourism and hospital industry