President Kabila inaugurates Lonrho Hotel in DRC

16 June 2010

Lonrho Plc

("Lonrho" or the "Company")

President Kabila inaugurates new Lonrho Hotel in Lubumbashi,

Democratic Republic of Congo

Lonrho Plc (AIM : LONR) is delighted to announce that the latest Lonrho Hotel was yesterday opened by His Excellency President Kabila, the President of the Democratic Republic of Congo (DRC) in a formal ceremony attended by Government Ministers, dignitaries and guests.

The 197 room Grand Karavia hotel is in the centre of Lubumbashi, the capital of the copper and cobalt mining province of Katanga in the DRC. US$ 20m has been spent on the project including a US$10m long term loan from the Development Bank of South Africa under its mandate to support development in Africa. The DRC Katanga Province has attracted an estimated US$10 billion in foreign investment into the burgeoning DRC copper industry, and is seen as one of the main economic drivers of the country. 

The Grand Karavia provides the only international standard accommodation in Lubumbashi. The hotel is situated in secure landscaped gardens beside a lake and offers five star accommodation combined with restaurants, bars, internet access and conference facilities as well as a health club, swimming pool and sports facilities. The hotel has already become a centre for commerce and social functions in Lubumbashi following the soft opening in April 2010.

Lonrho Hotels, a wholly owned subsidiary of Lonrho Plc, owns and manages hotels in Africa. Lonrho Hotels owns 50% of the Grand Karavia Hotel. The property is held on a long lease from the Government of the DRC. Lonrho Hotels Management Services Ltd has a ten year renewable management contract to operate the hotel.

David Lenigas, Lonrho's Executive Chairman, who attended the opening ceremony with President Kabila, commented:

"This exciting new Lonrho Hotel is a testament to the economic development and progress being made in the Democratic Republic of Congo. The speed of growth in the local economy is clear, and the immediate popularity of the facilities provided by the hotel and the impressive number of reservations being made demonstrate the latent demand for an international standard quality hotel.

Lonrho Hotels takes great pride in the level of service and customer satisfaction that guests receive at any Lonrho property and I am sure that the Grand Karavia will be a natural extension of the Lonrho Hotels portfolio".

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