The Hilton Group of Hotels is to receive a $5.5 million loan from the International Finance Corporation to set up shop in Bujumbura, Burundi as the battle for the control of the EAC hotel market heats up.

According to IFC, the deal was due to have been signed last week, as Hilton ups its stake for the control of the EAC hotel sector, with several global hotel chains seeking to tap into the growing number of tourists arrivals in the region.
Earlier this year, Hilton Hotels also announced plans to open a 160-room 4-star hotel in Kigali after it completed the registration of its $30 million investment with the Rwandan Development Board (RDB).

Hilton Kigali will also have luxury apartments on the 20-acre Kigali City Park to be developed by Opulent Hotel Group as part of their partnership with Hilton Hotels Corporation in Africa.

Another Hilton hotel is under construction in Kampala.

The Bujumbura project consists of the renovation and rebranding of the former 3-star 106-room Novotel Hotel in Bujumbura, into a 4-star 138-room “Doubletree by Hilton” hotel.

International branding

The hotel will be the first international, upscale brand operating in Burundi and will address the lack of adequate accommodation facilities in Bujumbura.

The country is currently the only EAC member state which does not have a branded hotel.

“The Doubletree’s key location in Bujumbura’s central district is of convenience to international businessmen.  The hotel will also create jobs, encourage tourism and contribute to economic diversification and sustainable growth,” said Neha Sud, IFC’S communications officer, investment services for sub-Saharan Africa.  

Ms Sud added, “Hotels generate foreign currency and tax revenue, and provide supply chain linkages to local farmers and suppliers.” 
The government had tried to privatise in the past with Novotel, but the process fell through due to civil unrest. 

The Doubletree by Hilton is the first international hotel to enter Burundi in the past 20 years, and also marks IFC’s 100th hotel investment in Africa. 

“As interest in economic opportunities in Burundi grows, the entry of the Hilton franchise will improve business infrastructure, providing international standard accommodation and conference services,” Ms Sud said.
IFC says the investment in Burundi is part of its strategy to promote hotel industry in post conflict countries in Africa.

In the latest World Bank’s Doing business report, released recently, Burundi has emerged among the most improved country in terms of investment reforms in Africa.

In the IFC/World Bank Doing Business 2012 report, Burundi was ranked the 7th most improved economy in the world. 

“Due to reforms in areas such as protecting the investors, paying taxes, getting construction permits and resolving insolvency, Burundi now offers a business environment more conducive to investments like international hotels.” IFC says.

The total project cost is estimated at $21.8 million.

As of February 2011, the Hilton hotel chain is indicated to have twenty-five (25) operational properties in Africa, with another fifteen (15), still in development according to Wikipedia.