Last week, Quantum Global Investments Africa Management announced that it has acquired Lusaka’s InterContinental Hotel from Kingdom Hotel Investments in a deal that closed at the end of March. The transaction, which sees Quantum pay $35.9 million for 100% of the InterContinental Hotel marks the debut investment for one of Quantum’s funds, the $500 million QG Africa Hotel, a Mauritius-based investment fund.
The deal hopes to capitalize on the demand from rising numbers of international business travelers to Africa, attracted by the continent’s stronger performance in comparison to many other parts of the world as well as increasing political stability and transparency on the region. QG Africa Hotel targets real estate and real estate-related opportunities in mid- and up-scale hotels poised to benefit from expanding international and cross-regional demand for more improved business hotel accommodation in the continent.
Commenting on the acquisition of the 244-room hotel, Quantum’s founder Jean-Claude Bastos de Morais was quoted as saying “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.”