20th Feb 2008 07:00
Lonrho PLC20 February 2008 20th February 2008 LONRHO Plc ("Lonrho" or the "Company") LONRHO WINS CONTRACT TO REDEVELOP AND MANAGE THE 'KARAVIA', A 250 ROOM HOTEL IN LUBUMBASHI, DEMOCRATIC REPUBLIC OF CONGO Lonrho plc (AIM: LONR) today announces that, following a competitive tenderprocess, Lonrho has been awarded the redevelopment and subsequent managementcontract for the Karavia Hotel in Lubumbashi by the Government of the DemocraticRepublic Of Congo (DRC). The tender process was run by the Comite de Pilotage de la Reforme desEntreprise Publiques, (COPIREP), the Government department for reconstructionprojects and the Lonrho proposal was approved by the Council of Ministers. A new company, Karavia 2008, will be established to be owned as to 30% by theGovernment of the DRC, 35% by Lonrho and 35% by De Moerloose Group, a largeBelgian group operating in the DRC in the automotive, distribution and airlinesbusiness. Karavia 2008 will hold a 25-year lease on the property for apeppercorn rent, renewable for a further period of 25 years. Karavia 2008 willinvest up to US$ 20 million in the refurbishment project to bring the hotel backto an international five star standard. The funds will be raised as acombination of equity and debt finance. The Karavia hotel is currently the only potential large-scale accommodationfacility in Lubumbashi, the burgeoning centre of the copper and cobalt industryin the DRC. The hotel, originally a Sheraton Hotel, has been derelict for overten years and requires a complete refurbishment. The hotel market in Lubumbashi is currently chronically underserviced as thereare no international standard accommodation facilities meeting the growingmarket demand, being driven by executives and mining engineers developing theworld class natural resource projects in the region, such as Phelps Dodge;Anvil; Nikanor; and First Quantum. In excess of US$ 12 billion is being investedin natural resource projects in Katanga province, of which Lubumbashi is thecapital. Lonrho Hotels will have the management contract for the hotel on a renewableten-year management contract. The hotel will be branded the 'Karavia : A LonrhoLuxury Hotel'. It is estimated that the project will take approximately twelve months tocomplete. David Lenigas, Executive Chairman of Lonrho stated : "Lubumbashi is experiencing significant economic growth as new copper and cobaltprojects are planned and come on line. This in turn has generated large numbersof expatriate and Congolese visitors, who currently have very limited choicesfor accommodation. The requirement for an international standard hotel to cater for this market isclear and forecast occupancy and room rates are excellent. The refurbishment of the property will create an asset that the DRC Governmentcan be proud of, and the rebuilt hotel will be a fitting testament to theprogress in the country since the democratic elections." ENQUIRIESLonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 7714 721379 Collins Stewart Europe : NOMAD to LonrhoHugh Field / Jonny Sloan +44 (0) 20 7523 8350 NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays a fundamental role in the development of the African economy. Since 2006, the Company has invested in or acquired control of: • Hotel Cardoso - www.hotelcardoso.co.mz• Lonrho Mining - www.lonrhomining.com• Luba Freeport - www.lubafreeport.com• Fly540 - www.fly540.com• Norse Air - www.norseair.co.za• Swissta Holdings - www.swissta.com• SA Independent Liner Services - www.saliners.com• Bytes and Pieces -• Celsys Limited - www.celsys.co.zw. Kwikbuild - www.kwikbuild.co.za This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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