Uganda’s oldest five-star hotel, Sheraton Hotel, is up for sale with a staggering price tag of Shs.317 billion ($85 million). Originally opened in 1967 as Apolo Hotel by President Milton Obote, it was later rebranded as Sheraton Kampala Hotel in 1991.
The hotel was sold to Midroc, a Saudi Arabian company, in 2001, which has since sold shares to six other investors.The decision to sell the hotel has been kept under wraps by the owners and management.
However, General Manager Jean-Philippe Bittencourt denied any imminent sale, stating, “That information is inaccurate.” Contrary to this, a document used by brokers to find potential buyers reveals detailed information about the hotel.
The hotel occupies three plots of land, with the first plot leased until 2064, and the second and third plots being freehold. The document also reveals that the hotel’s approximate income for 2022 was $9,787,031.
The asking price is set at $85 million net, excluding commissions, with the condition that the new owner must continue the contract with the Sheraton brand for ten years.
The hotel’s history dates back to October 8, 1967, when it opened as Apolo Hotel, attended by Prime Minister Apollo Milton Obote. After Obote’s overthrow, the hotel was renamed Kampala International Hotel, only to revert to its original name after his return to power. In 1987, Middle Eastern investors secured a 25-year lease and refurbished the hotel, reopening it as Sheraton Kampala Hotel in 1991.
The hotel has undergone several renovations since then, culminating in its sale to Midroc Saudi Arabia in 2001. Insiders reveal that the Arab investors are willing to accept $70 million from a serious buyer.
The hotel’s storied past and prime location make it an attractive purchase for potential buyers.Following Obote’s overthrow by Idi Amin in 1971, the hotel underwent significant changes. After Amin’s overthrow in 1979, the hotel reverted to its original name, only to be leased to Middle Eastern investors in 1987.
The hotel’s compound was merged with neighboring Jubilee Park, renamed Sheraton Gardens, and has since become a iconic landmark in Kampala.The hotel’s sale is a closely guarded secret, but insiders reveal that the owners are willing to negotiate the price.
With its rich history and prime location, the Sheraton Hotel is an attractive purchase for potential buyers.
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