IFC-Invested Serena Kigali Hotel Creates 10 Jobs per Room, Generates $64 million for Rwanda Economy
For more than 50 years, IFC – with a standing portfolio of around half a billion dollars in hotel projects – has invested in more than 250 hotels in emerging economies. In so doing, it has supported local business infrastructure, economic growth, and employment.
IFC recently partnered with the Overseas Development Institute and IFC client, Serena Hotels, to conduct a case study of the Serena Kigali Hotel in Rwanda which demonstrates how each hotel room created, and sustains, 10 jobs, and had (over five years) generated more than $85 million of economic activity -- $64 million related to the local economy.
In 2008, IFC invested $8.1 million to support a $20.8 million refurbishment and expansion of the 148-room Serena Kigali, the only 5-star hotel in Kigali. In its five years of operations, the hotel (which mainly attracts business visitors), has developed a strong network of local suppliers; made tax contributions and lease payments totaling $15.7 million; and hired 350 permanent staff (95% Rwandese, 5% Kenyan). Excluding 528 construction jobs, it has contributed 1,388 direct and indirect jobs, translating to about 10 jobs per room. The Serena Kigali's success has led to a huge increase in (mostly) lower-tiered room availability and the nearby construction of a 250-room Marriott Hotel.
For over 40 years, IFC has invested in the Serena Hotels Group (TPS Serena,) an organization of the Aga Khan Fund for Economic Development (AKFED) in Africa (Kenya, Rwanda, Tanzania, and Uganda), and Central/South Asia (Afghanistan, Pakistan, and Tajikistan).