(Ecofin Agency) - The Crowne Plaza hotel, acquired by Kasada in July 2022, will undergo renovation and modernization with joint financing from the International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and Proparco.

Kasada, a private equity platform focused on hospitality in Sub-Saharan Africa, secured $49.5 million in funding on July 19. The financing includes an $11 million loan from IFC, another $11 million loan from Proparco, and a $27.5 million guarantee from MIGA.

The funds will be channeled to Kasada's first investment fund, the Kasada Hospitality Fund, which will use it to renovate and expand the Crowne Plaza hotel, acquired in July 2022. After the renovation, this 206-room establishment will reopen as a dual-branded Pullman & Mercure hotel.

Commenting on the project, Olivier Granet, Managing Partner, and CEO of Kasada stated: "This asset is about to enter a new lifecycle and contribute to the revival of Kenya's hospitality sector after the COVID-19 pandemic."

The acquisition of Crowne Plaza in July 2022 marked Kasada's second entry into the hotel sector in East Africa. Before this, the investor had acquired the Umubano Hotel in Kigali, Rwanda in June. At that time, David Damiba, Managing Partner, and CIO of Kasada highlighted the platform's desire to "diversify its portfolio," with the aim of accelerating "its expansion strategy in strategic regions of the west, east, and south of the continent."

Kasada has been a longstanding partner of IFC, Proparco, and MIGA. The two World Bank Group institutions and the subsidiary in charge of the private sector of the Agence Française de Développement (AFD) supported hotel investor Kasada in 2021 and 2022. In July 2021, IFC and Proparco committed to investing $160 million in this fund to help build a hotel portfolio in Sub-Saharan Africa. Also, in January 2022, MIGA agreed to cover Kasada Hospitality Fund's equity investments in hotel redevelopment and construction in Sub-Saharan Africa.

The Kasada Hospitality Fund, the direct beneficiary of this joint Proparco-IFC and MIGA financing, received commitments of over $500 million in April 2019. This resource helped them carry out several strategic acquisitions in Sub-Saharan Africa.

In Kenya, the travel and tourism sector accounts for approximately 9% of GDP, with Nairobi, the capital, making a significant contribution due to its status as a commercial hub in East Africa and a center for many regional and global organizations. Business demand is indeed a key factor in the development of the hospitality market.

Charmberline Moko