Happy Lazaro
1 November 2009
Arusha — Arusha will soon have yet another world-class hotel following injection of multi-million dollars to the rehabilitation of Mount Meru Hotel, along Arusha-Moshi road.
The hotel facing the second highest mountain in Tanzania has been relabeled New Mount Meru Hotel and has attracted a strategic investor - the Southern African Enterprise Development Fund (SAEDF) who hold 40 per cent equity in the project. Their stake in the project totals USD 9.2 million.
Hotel Management Company Ltd (HODI) who will manage
the hotel also secured a syndicated loan from CRDB,
Tanzania Investment Bank and PTA Bank totaling
USD 24 million.
HODI's Board Chairman Ndewirwa Kitomari said during the project ground breaking event last week that the facility would be complete in 15 months and would employ more than 300 workers.
"We are very happy and excited that we have managed to get co-investors and secured funds to revive this magnificent hotel. Revival of the hotel will boost the government tourism revenue and benefit over 3,000 families directly," Kitomari said.
The ground breaking event was graced by the permanent Secretary in the Ministry of Natural Resources and Tourism, Dr. Ladislaus Komba and was attended by various dignitaries including members of the media.
The Permanent Secretary also inspected the construction works.
"I commend the new management for their efforts aimed at reviving this hotel and I would like to urge them to ensure continuity of their plans so that the Hotel is ready for business in the 15 months as planned," Dr. Komba said.
"Your Investment decision to rehabilitate this hotel in Tanzania is a wise one and has been parallel to the current tourism sector transformations and needs of economic growth which require serious investors who understand the hospitality market needs.
"And I would like to assure you that you have the government support in this venture and others that you would wish to pursue with in this country," he added.
The Mount Meru Hotel, formerly owned by the government was privatized in 2004 by the Presidential Parastatal Sector reform and was bought by Blue Jewel Company.
Blue Jewel set about sourcing for strategic partners with business management expertise and credibility to attract funding for the rehabilitation project.
"We managed to bring on board, the Southern African Enterprise Development Fund (SAEDF), as the co-investor in the project," Kitomari said and added that SAEDF and Blue Jewel Company teamed up to establish HODI Hotel Limited.
The Co Chairman of the Southern African Enterprise Development Fund (SAEDF), Ambassador Carlton Masters said SAEDF was happy to support the New Mount Meru Rehabilitation Project.
"This hotel is in line with the government of Tanzania to provide job creation while increasing room capacity for tourists and convention business. We are committed to complete this project 2010. 'Yes we Can'. The New Mount Meru will be refurbished ands re-established as the Hotel of Choice in Arusha and East Africa," Ambassador Carlton said.
The New Mount Meru hotel was built a year after the collapse of the first East African Community in 1977, when Tanzania realized that it didn't have a world class tourist hotel in the area
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