Umubano Industries Ltd won the auction beating seven other bidders in an auction that took place in Kigali City Centre at the four-star hotel.
Ubumwe Grande Hotel was sold on auction in a bid to pay US$18 million loan that was owed to Kenya Commercial Bank (KCB) it had failed to service.
The auction was presided over by Lawyer Joseph Ngabonziza with Umubano Industries Ltd represented by Hassan Gasana who issued a cheque of US$34,053,888.9.
Speaking to journalists after the auction, Hassan Gasana said Umubano Industries Ltd which he represented aims at offering quality hospitality services, promising better services to customers.
“We are happy the auction went well and transparent. This hotel will continue to work as usual. Not many changes will happen because we focus on Rwandan culture to offer good hospitality services to people. I urge the current staff and employees of the Hotel to keep working with utmost commitment because their jobs are secure,” Gasana said.
On rebranding the hotel, Gasana said this will be looked at later.
KCB Bank Rwanda had recently announced that the former owners of Ubumwe Grande Hotel owed it a loan worth US$18 million, about Rwf15 billion.
Formerly, Ubumwe Grande Hotel went by the name of Zinc Hotel valued at about $40 million and was co-owned by CG Corp Global (owners of Zinc Hotel brand), and the Mukwano Group, who owned a combined 80 per cent stake; and Rwandan Robert Bapfakurera, current Chairman of Private Sector Federation, who owned a 20 per cent stake.
The facility, which has 153 rooms, 134 guest rooms and 19 apartments opened in September 2016.
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