Why University of Rwanda is planning a five-star hotel in Huye

The University of Rwanda (UR) plans to build a hotel of about 150 rooms in Huye City as part of a wider strategy to generate more of its own revenue and meet growing demand for high-end accommodation in the district. Vice Chancellor Prof Didas Kayihura Muganga said the proposed development would offer different levels of accommodation, ranging from three- to five-star services, as well as apartments for researchers, visiting lecturers and other guests staying for longer periods. The project is expected to be developed on university-owned land in Itaba, Huye District. According to Kayihura, the investment is intended both to create a new revenue stream for the university and address a gap in Huye's hospitality market, where there is currently no five-star hotel. ALSO READ: Huye city struggling to spring back to life “We want a high-profile visitor coming to Huye who wants to stay in a five-star hotel, which is currently unavailable, to have that option,” he said. “The same applies to four- and three-star accommodation. We also want to build other facilities, including apartments, for people who want to stay for longer periods, such as researchers and foreign lecturers.” According to the Rwanda Statistical Yearbook 2025, Huye had 38 accommodation establishments with a combined 938 rooms in 2024, placing it among the country's top districts in terms of accommodation capacity. Huye currently has two four-star hotels but no five-star establishment. Kayihura said the university believes the proposed hotel could complement existing hospitality businesses rather than compete with them, particularly as Huye attracts academics, tourists, sports teams, conference delegates and other visitors. “The planned hotel will complement existing hotels and boost investment in the hospitality sector, particularly by providing accommodation for lecturers and researchers visiting the university from around the world,” he said. The university is currently pursuing the necessary approvals, including a construction permit. Once completed, Kayihura said, the property would be managed by experienced hospitality operators. Part of push for 63% self-financing The hotel is part of UR's broader effort to diversify its income as the institution seeks to finance 63 per cent of its operations from internally generated revenues within the next four years. The university is pursuing commercial ventures mainly through UR Holding and UR Engineering. UR Holding, which initially concentrated on health-related services such as dental care, imaging, physiotherapy and laboratory services, had expanded to 79 projects by 2025. Its activities now include agriculture, fishing, healthcare, recruitment services, business services, printing and hospitality, among other ventures. ALSO READ: Govt seeks investor for $30m five-star Lake Kivu hotel Kayihura said diversifying the university's income is important to strengthen its ability to finance education, research and innovation while reducing dependence on traditional funding sources. Huye is considered particularly attractive for such investment because of its large academic community. The city is home to four higher-learning institutions with a combined population of more than 18,000 students, in addition to lecturers, researchers and other staff who create demand for accommodation, restaurants, transport and other services. Huye also attracts visitors for tourism, entertainment and sports. “We want to complement the existing hotels using our land, while also providing a service we need, because our lecturers, researchers and foreign academics who come here to teach need accommodation,” Kayihura said. Student housing also targeted Beyond the hotel, UR is also looking to attract private investment in student accommodation. Kayihura said the university's Huye campus has more than 13,000 students and over 600 staff members, yet existing university residences can accommodate only about 4,000 students. That leaves thousands of students dependent on privately rented accommodation outside the campus, some of which does not meet desired standards. “Anyone who considers investing in student accommodation can be assured that there is demand,” he said. The university has land that could be used in partnerships with private investors, according to Kayihura. Under possible arrangements, UR could provide land while an investor finances and develops student residences. Other projects could be developed jointly, depending on the contribution agreed by both parties. Such developments could also include restaurants, shops, laundry facilities, entertainment spaces and other services targeting students and university staff. ALSO READ: Visitors to Rwanda now spending more “An investor with a good project that aligns with the university's objectives can approach us and we can discuss it,” Kayihura said. “We could provide the land as our contribution while the investor puts up the facility, or we could agree on what each party needs to contribute to implement the project together.” Demand for such facilities is expected to increase further as UR plans to expand the student population at its Huye campus to about 20,000 in the coming years. Boost for Huye Southern Province Governor Alice Kayitesi welcomed the planned hotel, saying it could help strengthen Huye's ability to host larger events and attract more visitors. “This is a good project that will be exciting. I was told it will have more than 150 rooms,” she said. “When we add these to what we already have, it will help us raise the standard, as we could host conferences of around 500 people. We will continue working together to ensure the project is implemented.” Kayitesi said the project reflects the broader effort to attract investment to Huye and strengthen collaboration between public institutions, private investors and development partners. Rwanda Development Board Chief Executive Officer Jean-Guy Afrika also said identifying investment opportunities must be followed by efforts to turn them into viable projects. “Our goal is not simply to talk about the opportunities available, but to work together on how to turn them into tangible projects,” he said. “Investment development is not only about attracting new investors; it must also help those already operating here to grow, expand their activities and create more value.” The university's investment plans come as Huye seeks to strengthen its position as one of Rwanda's major secondary cities. Long regarded as the country's education hub, Huye has in recent years seen renewed economic activity following the return of several University of Rwanda schools and departments to the city. The government has also announced plans to relocate the headquarters of several public institutions to Huye, a move expected to bring more workers, visitors and demand for housing and services. For UR, the proposed hotel therefore serves two objectives: filling a gap in Huye's hospitality market while turning university assets into income-generating investments.

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Why University of Rwanda is planning a five-star hotel in Huye