Sheraton Hotel, Uganda’s oldest five-star establishment, is currently on the market for an impressive Shs.317 billion, equivalent to $85 million.
The hotel, commissioned in 1967 by then-President Milton Obote, originally bore the name Apolo Hotel.
In 2001, the government sold the property to Midroc, a company based in Saudi Arabia, after it had rebranded in 1991as Sheraton Kampala Hotel.
Over time, Midroc Saudi Arabia has sold shares to six other investors, including its Ethiopian subsidiary, Midroc Ethiopia, and five other Arab individuals, notably Ahmed Hussein and others.
The decision to sell the hotel has been a closely guarded secret among the owners and management. When approached for comments, General Manager Jean-Philippe Bittencourt firmly denied any imminent transaction, stating, “That information is inaccurate.”
However, a document in both Arabic and English, which brokers have been using to find potential buyers, reveals detailed information about the hotel.
The Sheraton Hotel sits on three plots of land: the first plot, covering 2,343 hectares, is leased until 2064; the second plot, spanning 1,362 hectares, is freehold; and the third plot, comprising 0.603 hectares, is also freehold.
The document also indicates that the hotel’s approximate income for 2022 was $9,787,030
The asking price for the hotel is set at $85 million net, excluding commissions.
The document specifies that the company owning the 250-room hotel has a contract with the company that owns the Sheraton brand for the next ten years, divided into two five-year stages.
One of the purchase conditions is that the new owner must continue the contract with the Sheraton brand for the same duration.
Insiders privy to the sale process have revealed that the Arab investors are willing to accept $70 million from a serious buyer.
The Sheraton Hotel’s storied history dates back to its opening on October 8, 1967, as the Apolo Hotel, attended by Prime Minister Apollo Milton Obote.
Following Obote’s overthrow by Idi Amin in 1971, the hotel was renamed Kampala International Hotel. After Amin’s overthrow by Tanzanian forces and the Uganda National Liberation Army in 1979, and Obote’s return to power in 1980, the hotel reverted to its original name.
In 1986, the National Resistance Movement government liberalized the economy, and in 1987, a group of Middle Eastern investors secured a 25-year lease from the hotel’s owners, Apolo Hotel Corporation Limited, a government-owned entity. The hotel underwent extensive refurbishment and reopened as Sheraton Kampala Hotel in 1991 under the Sheraton Hotels franchise.
The hotel’s compound was merged with the neighboring Jubilee Park, renamed Sheraton Gardens. Since then, the hotel has experienced several major renovations, culminating in its sale to Midroc Saudi Arabia in 2001.