Lamcent Capital to build US$40m hotel in Vic Falls

 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.

Source: Lamcent Capital to build US$40m hotel in Vic Falls (25/12/20)

See Also

Victoria Falls Bits and Blogs (December 2020) Lamcent Capital to build US$40m hotel in Vic Falls.

Victoria Falls Bits and Blogs (28th June 2022) New US$50m riverside hotel development for Victoria Falls.

Victoria Falls Bits and Blogs (23rd July 2022) Conservationists’ concern at overdevelopment at Vic Falls.

Victoria Falls Bits and Blogs (25th October 2023) Victoria Falls attracts US$64m new hotel investor.

Victoria Falls Bits and Blogs (9th November 2024) Victoria Falls to get two new upmarket hotels.