UGANDA, Kampala | Real Muloodi News | One of Uganda’s prestigious five-star establishments, the Pearl of Africa Hotel also known as Aya Hotel, located on Nakasero Hill’s outskirts, is on the brink of being auctioned due to an outstanding debt exceeding USh600 billion.
Businessman Mohammed Hamid, the owner of the hotel, faces this predicament after defaulting on a loan acquired from the Industrial Development Corporation of South Africa.
Unless the debt is settled, the hotel will go under the hammer on October 26.
Spanning 32,000 square meters and boasting 23 floors with 296 rooms, 37 suites, two restaurants, three bars, and nine meeting rooms, the Pearl of Africa Hotel offers a panoramic 360-degree view of Kampala City from its lofty altitude of 1,240 meters above sea level.
Despite the hotel’s grandeur, the looming auction casts a shadow over its future.
Representatives from MMAKS Advocates, the legal team representing the Industrial Development Corporation of South Africa, expressed their reluctance to entertain settlement discussions, citing more than a decade of non-payment by Aya Investments, the company owned by Mohammed Hamid.
The lawyers maintained that given Aya Investments’ history of non-payment, an amicable settlement was not a viable option.
On the other side, Mr. Gibson Munanura, the attorney representing Aya Investments, declined to provide comments, stating that he had not received specific instructions from his client regarding media interactions.
The legal dispute stems from a loan facility extended to Aya Investments in 2007 for the construction of the hotel. With the outstanding debt totaling over USh600 billion, including both principal and interest, the South African entity turned to the courts to recover its funds.
In a recent development, the High Court Deputy Registrar, Catherine Agwero, issued an order for the attachment and sale of the hotel property, which includes certificates of titles for Nakasero Hill plots and developments.
The fate of the Pearl of Africa Hotel now hangs in the balance, with the possibility of a public auction scheduled for later this month.
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