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Uganda’s Hospitality Industry Hits Rough Patches on Road to Stability

Uganda’s Hospitality Industry Hits Rough Patches on Road to Stability

Written by Edgar Angumya | From The Observer

Building hotels has yet again become trendy.

More than six years after a couple of investors got their fingers burnt when they failed to recover the money they had channeled towards building hotels in preparation for the 2007 Commonwealth Heads of Government Meeting in Kampala – which turned out to be poorly attended – the hotel industry appears to be recuperating. While there were hotels that went under receivership as a result of defaulting on bank loans, a number of Ugandan hotels are now witnessing more dealerships coming their way.

Protea hotel Entebbe plans to double its size even after it opened just two years ago. The hotel, which in a statement said it is experiencing increased demand, is expected to add 100 new rooms, with construction expected to begin in May and last about a year. There are also plans for Protea to put up a hotel in Hoima, where a couple of oil exploration, and soon production, activities are taking place.

While the Hilton hotel in Nakasero might have missed a couple of deadlines for its completion date, the project is in its final stages. At Shimoni, the former site for Saudi Arabia’s Kingdom Holdings, work on a hotel and shopping complex is ongoing. More hotels such as GeoLodges, Cielo Country Inn in Ishaka town, and the Marassa group hotels have opened up in the countryside.

Industry players say the renewed interest in the hospital sector is driven by the growth in Uganda’s economy.

“Continued economic growth will see an organic increase in business travel in and to the country, and as long as ‘brand Uganda’ continues to market itself on the international stage, the tourist numbers should grow as well,” Danny Bryer, the director of sales, marketing and revenue for the Protea Hospitality group, said in a statement.

Stuart Cook, the head of Protea hotels in Uganda, said: “Protea hotel Entebbe has been running at high occupancies since it first opened; so, building this new wing is a necessity.”

One of the biggest drivers remains the oil industry. As Uganda prepares to embark on the production stage of its oil industry, which has an estimated expenditure bill of roughly $10bn, other service providers have positioned themselves to tap into these opportunities.

Read more at The Observer