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Viewing cable 07KIGALI66, Serena Hotels helps validate the Rwandan potential

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Reference ID Created Released Classification Origin
07KIGALI66 2007-01-24 05:50 2011-08-24 00:00 UNCLASSIFIED Embassy Kigali
VZCZCXYZ0012
RR RUEHWEB

DE RUEHLGB #0066 0240550
ZNR UUUUU ZZH
R 240550Z JAN 07
FM AMEMBASSY KIGALI
TO SECSTATE WASHDC 3679
UNCLAS KIGALI 000066 
 
SIPDIS 
 
INFO AMEMBASSY NAIROBI 
 
DEPARTMENT FOR AF/C 
DEPT OF COMMERCE WASHDC 
TREASURY FOR DO/JWALLACE, USDOC FOR ITA/SMATHEWS, USTR FOR DWEINER, 
OPIC FOR RO'SULLIVAN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV BFIN ETRD ELAB KTDB PGOV RW
SUBJECT: Serena Hotels helps validate the Rwandan potential 
 
 
1. SUMMARY.  The Serena Group signed a 30-year concession to manage 
the two largest Rwandan hotels -- the Kigali InterContinental Hotel 
and the Kivu Sun Hotel, beginning February 1 2007. The hotels will 
be relaunched following an extensive refurbishment under Serena 
branding, marking another attempt to  expand the potential of the 
Rwandan tourism market.  END SUMMARY. 
 
2. The Serena Group is due to take over the operations of Kigali 
InterContinental Hotel and Kivu Sun Hotel on February 1, 2007. The 
hotel group has entered into a long term lease agreement with the 
GOR for the operation and management of the two hotels. The 
agreement was signed on January 9 2007 by the Minister of Finance 
and Economic Planning James Musoni and Serena Hotels Managing 
Director Mahmoud Jan Mohamed, in the presence of Prime Holdings 
Chairman, John Mirenge. (Note: Prime Holdings is the GOR parastatal 
that currently owns and manages the hotels.) 
 
3. The Kigali InterContinental, a 104-room five-star hotel will be 
renamed Kigali Serena Hotel. The Serena Group agreed to make a 
capital investment of USD 9.5 million, and to construct 50 
additional guest bedrooms, a modern health and fitness centre, and a 
general upgrade of the hotel facilities. 
 
4. The 72-room four-star Kivu Sun Hotel located on the shores of 
Lake Kivu close to the border with Democratic Republic of Congo, 
will be renamed Lake Kivu Serena Hotel.  The Serena Group plans to 
develop Lake Kivu Serena Hotel into a top quality spa facility. 
 
5. COMMENT. The Serena Group's investment is yet another attempt by 
the GOR to revitalize its hotel ownings and set them up on a 
profitable basis.  Serena is a respected hotel chain (as was the Sun 
hotel chain before it) and its investments have proven to be 
catalysts for increased investments in the countries in which they 
operate (Kenya, Tanzania, Mozambique, and Uganda). 
 
ARIETTI