The Igongo Cultural Centre and Country Hotel in Mbarara now belongs to the government to a 49 percent extent. The action comes after the share acquisition agreement’s conclusion last month.
The Igongo Culture Center, which is situated near Biharwe along the Mbarara-Masaka route, has become a well-liked tourist destination.
In addition to offering hotel amenities, the complex includes a museum or cultural center that primarily features characteristics of the Ankole culture, such as cattle rearing, food, housing, and clothing.
The government’s investment will be managed by the government-owned Nile Hotel International Ltd, a company that has historically focused its operations in Kampala to manage the Nile Hotel and Conference Center.
Serena Tourist Promotion Services, located in Kenya, has a 30-year concession to operate the hotel, which it rebranded as Kampala Serena Hotel in 2004.
According to Joseph Barungi, manager of Nile Hotel International Inc, the owners of Igongo Hotel requested government investment in the facility.
According to rumours, the center’s proprietors required financial assistance to close a hole caused by debt incurred to finish the 4-star hotel.
The government suggested they contact the investment arm of the Uganda Development Corporation, NHIL, and the ensuing due diligence resulted in the purchase of 49% of the shares.
Nile Hotel did not specify the price it paid for the interest, but according to Barungi, the facility’s originality and its carefully considered concepts made the offer appealing.
Despite the facility’s total estimated value of 49 billion Shillings, it is rumoured that the government only paid 9 billion Shillings for it.
“Their museum and eclipse monument, business factors that make them stand out as an influential tourism hotel,” said Barungi.
The hotel takes pride in its tranquil surroundings away from the hustle and bustle of urban Mbarara.
All of the region’s tourism destinations, including the national parks of Lake Mburo, Queen Elizabeth, and Bwindi Impenetrable Forest, are strategically positioned within driving distance of the location.
According to the website, “the hotel’s convenience, exoticness, and location, as well as its opulent facilities, have helped us build a reputation for our attention to sleek design, remarkable service, and exquisite balance of luxury, comfort, and style.”
The hotel’s creator and owner, James Tumusiime, is also the owner and founder of Fountain Publishers and was instrumental in starting a national newspaper, the New Vision.
UDC said on Twitter that it would keep collaborating with Tumusiime to manage the facility.
In contrast to competing with or driving out the private sector, UDC stated that it collaborates with it.
On if this is a one-time transaction by the government, Barungi made hints about other acquisitions in the hotel, lodging, and tourism industries.
Future investment will be based on the findings of the feasibility study, but we are looking at investment potential indicated by the Ministry of Tourism and UTB, he said.