Source: Lamcent Capital to build US$40m hotel in Vic Falls | The Herald
Lamcent Capital intends to raise US$40 million through a combination of debt and equity to build a 200-roomed hotel in Victoria Falls. According to the company, US$16 million will be raised through equity, generating an average annual return of 14,6 percent and 12,1 percent on both return on equity and return on investment respectively over 10 years.
The hotel would have an estimated terminal value of US$55 million in 10 years based on an EBITDA multiple of 9,5x. The other US$24 million will be raised through debt with a 10-year tenure at 8 percent interest per annum, assuming a 2 percent US dollar inflation rate and a once-off 1 percent debt processing fee.
“The proposed hotel will spot 200 keys with 120 standard rooms, 48 deluxe rooms, 30 suites, and two presidential, making it an upper upscale scale brand in the same benchmark with Victoria Falls Hotel, Illala Lodge, A’Zambezi River Lodge, Africa Albida Lodges (Safari Lodge, Safari Club, Safari Suites),” said Lamcent.
“The land is aptly situated on the Zambezi River frontage, making it a premium destination for tourists. The river fronting location could be an exclusive offering in Victoria Falls as opposed to many competitors that do not benefit from river views, access to the river offers the potential for other revenues streams (cruises and water activities).”
Efforts are currently underway to have the project listed as a Special Economic Zone and to have it declared as a national project which will unlock tax benefits and funding flexibility.
The project is also eligible for the Afreximbank Construction Tourism-Linked Relay Facility.
Construction, expected to start during third quarter of next year and is estimated to take two years with official opening scheduled for third quarter of 2023.
Lamcent Capital to build US$40m hotel in Vic Falls
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And who are the directors and owners of Lamcent Capital comrades ? There are not too many Zimbabweans with a spare USD 40 million to build a hotel at Vic Falls. Only ZANUPF cadres are the types who have this kind of stolen money. Expect Lamcent Capital to be owned by a Mauritian company – really a bunch of Zimboes using Mauritius as a front in order to suck the money out of ZW when the time is ripe.