SafariLands.org: Hotels: Government unhappy over state of key tourist lodges sold off in 2003

The investor was to sink $13.9 m into the upgrading of Lake Manyara Hotel, Ngorongoro Wildlife Lodge, Seronera Wildlife Lodge and Lobo Wildlife Lodge. The Tanzanian government, unhappy over the state of four premier hotels in a key tourism circuit four years after their privatisation, has instructed the investor to sub-mit a business plan.

All are located in Magnificient areas in the National Parks, including, Lake Manyara Hotel, Ngorongoro Wildlife Lodge, Seronera Wildlife Lodge, Lobo Wildlife Lodge

It has emerged that Hotels and Lodges Ltd has failed to upgrade the hotels, which it acquired in 2003, as per its agreement with the government.

Prof Jumanne Maghembe, Minster for Natural Resources and Tourism, told The EastAfrican that the government is generally not impressed by the hotels' business operations, and has asked the investor to submit a detailed business plan showing exactly what re-furbishments it plans to make and the timeframe in which they will be implemented.

"The business plan must be implemented because any further delay is tantamount to the reconsideration of the agreement," he said.

Saleh Pamba, the then permanent secretary in the Natural Resources and Tourism Ministry, had earlier said that the government through PSRC had been following the hotels' operations closely, and "had given the investor time to submit a business plan."

Dhiren Kotak, the group executive director of Hotels and Lodges Ltd, confirmed to The East African recently that the government had indeed asked the firm to submit the business plan, and that Hotels and Lodges had already submitted it. "We have submitted a comprehensive plan," he said.

The investor was to sink $13.9 million into the rehabilitation and upgrading of Lake Manyara Hotel, Ngorongoro Wildlife Lodge,

Seronera Wildlife Lodge and Lobo Wildlife Lodge.

The four properties were acquired for $11.6 million in a competitive tendering process that involved gi¬ant firms like Kenya's Tourist Promotion Services, Southern Sun Hotels Inns & Resorts and Starwood Hotels & Resorts Worldwide.

Hotel and Lodges is a sister company of Gulf Africa Petroleum Company (Gapco) of Mauritius, which had taken over operations of Esso and Caltex in the region in the late 1990s.

Eventually, Gapco vied to run the Tanzania Railways Corporation (TRC) in partnership with Rites of India, but has been shut out of the deal due to the financial problems currently afflicting the firm.
The multinational company has a presence in Tanzania, Kenya, Uganda, Zambia, Malawi, Mauritius and Sudan, and is owned by Mauritian oil magnates the Kotak brothers, Dhiren and Yogish.

The privatisation of the hotels, which were at the time under Tanzania Hotel Investments, had also involved acquisition of Mafia Island Lodge by Coastal Travels Ltd, at $500,000. The properties have a total bed capacity of 1,500.

It was agreed between both investors and the Presidential Parastatal Sector Reform Commision that the former would restore the hotels and lodges to their original decor and character and provide quality services to their customers.

In the first phase, which should have commenced immediately, 20 suites with two single beds each were to be renovated. Rooms were to be refurbished, with communications, electrical, water and the sewage systems being repaired. Out of 68 suitors, only 18 were pre-qualified on the basis of their solid track record in hotel management, sound financial position and environmental concerns.

Hotels and Lodges had five firms that were eventually invited to bid, including Soba Management Ltd ($9.2 million for four properties), Coastal Travels ($1.2 million), World Wide Leisure Group
($2 million for two properties) and East African Holdings Ltd, associated with the Madhvani Group of Uganda ($9.85 million for four properties).

Ngorongoro Wildlife Lodge, with 78 rooms, is perched atop the Ngorongoro Crater, 7,500 feet above sea level. Lake Manyara is located on the western escarpment of the East African Rift Valley, and has 100 guest rooms.

Seronera Wildlife Lodge, artfully constructed around a rocky outcrop from glass and wooden elements, has 75 rooms while Lobo Wildlife Lodge is situated on the migratory route of over a half and a million wildebeest, and has 78 guestrooms.

The EastAfrican

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