Muhammed Hamid, who gained experience, confidence and capital from his elder brother’s business, started his own business in the early 1990s. Ten years later, he bid to build a second-largest hotel by room number in Kampala.
However, eight years after it was opened, the owner AYA Investments Uganda Ltd is being liquidated and the hotel has rebranded to Win 5 Hotel and Spa. The liquidator, Robert Mugabe, is in the process of meeting with the creditors of the company.
It is not clear how many companies and individuals have claims on AYA. The expected high demand for hotel rooms ahead of the Commonwealth Heads of Government Meeting (CHOGM) in Kampala in 2007 saw the government offer incentives to private investors to cover the gap.
The government gave AYA 14 acres of land that formerly housed Uganda Broadcasting Corporation and other Ministry of Information facilities at Nakasero Hill in the central business district in 2005.
Experts say it was too ambitious a move to put up a five-star, 296-room 23-story hotel within one year. Hamid admitted to encountering several hurdles that included the withdrawal of Hilton Hotels from the partnership, which affected finances. In 2021, the Industrial Development Corporation of South Africa Ltd attempted to seize the hotel to recover a debt of 118 million dollars.
The money is part of the financing contract signed between AYA and the South African entity to finance the construction of the hotel in 2007. AYA says the corporation made it hard for them because it would delay the availability of the money, which delayed the project completion. Currently, the hotel is trading as WIN 5 Hotel & Spa.
Would you like to get published on this Website? You can now email Uganda Times: an Opinion, any breaking news, Exposes, story ideas, human interest, articles, or any interesting videos: [email protected]. Or join the Ugandatimes WhatsApp Group or Telegram Channel for the latest updates
