La Paillotte, a private business operator firm, has acquired the Burera Beach Resort Hotel, a facility that had failed to do business since 2017. The development follows an approval by the cabinet of a property purchase agreement brokered between Burera District and the new operator. La Paillotte is not a player on the local market, having ventured into several hospitality businesses for nearly 10 years. Speaking to The New Times in an exclusive interview, Eric Rwigamba, Minister of Public Investments and Privatization, reiterated his confidence in the new investor, citing that the firm is “accustomed to the hospitality environment.” He also hailed the financial resources and expertise the new investor possesses. “It comes in handy looking at the fact that we want to prevent further losses. We are confident that it will achieve its initial objective.” Commenting on the bidding process, Rwigamba highlighted, “We look at how much they will invest to make it operational, and how that is sustainable.” La Paillotte is acquiring the hospitality facility at Rwf530 million, he asserted. This is despite a total investment of over Rwf654 million. The losses are mainly attributed to the previous manager who had failed capacity wise and further adverse impact of the Covid-19 pandemic. Bella Twizerimana, Managing Director at Paillotte did not divulge details of the agreement, but she expressed optimism for better output. “We shall communicate full details of the agreement during the official handover that is expected late this month,” she said in a telephone interview. Twizerimana also said she was confident that the hotel facility would generate “attractive return on investment,” based on the firm’s current business plan. Meanwhile, the Auditor General report has, since 2017, exposed issues regarding losses incurred by the facility, a concern that Minister Rwigamba said, was considered in the bidding process. “We hire professional valuers to assess the real market price of the property,” he said, adding, “The return on investment is not how much we get from that, we want to see if its initial objective is achieved. And how that plan prevents further losses.” Hotel’s amenities The request for proposals for the acquisition of the hotel shows that it has a building with a bar and restaurant among other facilities. It also has a counter, store, two restrooms and two urinals, two toilets, terraces, and a kitchen. Other facilities include 10 identical accommodation houses counting 580 sqm – each has a bedroom, living room, bathroom, balcony; and two larger identical accommodation houses having 126 Sqm, each with two bedrooms, three bathrooms, and a living room. In addition, it has a multipurpose hall covering 501.5 sqm surface, and a barraza for the multipurpose hall (with 117 sqm), a car park for the multipurpose hall, and land covering 11764 sqm.
