THE historical Hotel 77 in Arusha has been sold to the Kempinski Hotels, the Minister for Tourism and Natural Resources, Prof Jumanne Maghembe, told the ‘Daily News’ yesterday.

Prof Maghembe said the government has sold the hotel and all its assets through the Presidential Parastatal Sector Reform Commission (PSRC). He, however, did not say it was sold what price.

“The main aim to sell it is for the investor to build a high standard hotel for the city,” he said.

The minister said that Kempinski Hotels would upgrade the hotel to a five-star status and will have over 300 rooms. The village-style hotel was built specifically for the Group of Seventy Seven Nations meeting held in Arusha in 1979.

Kempinski acquires Hotel 77

DAILY NEWS Reporter
Daily News; Tuesday,May 15, 2007 @00:04
THE historical Hotel 77 in Arusha has been sold to the Kempinski Hotels, the Minister for Tourism and Natural Resources, Prof Jumanne Maghembe, told the ‘Daily News’ yesterday.Prof Maghembe said the government has sold the hotel and all its assets through the Presidential Parastatal Sector Reform Commission (PSRC). He, however, did not say it was sold what price.

“The main aim to sell it is for the investor to build a high standard hotel for the city,” he said.

The minister said that Kempinski Hotels would upgrade the hotel to a five-star status and will have over 300 rooms. The village-style hotel was built specifically for the Group of Seventy Seven Nations meeting held in Arusha in 1979.

The minister however said he did not know the amount of money that Kempinski Hotels will invest in the project, which at its peak in late 1970s and early1980s was one of the most popular hotels in the country.

The minister further said the investor was free to choose the name of the hotel since under the agreement he was not bound to use the current name.

The Kempinski Hotels also bought the Kilimanjaro Hotel in Dar es Salaam, on which the government had put a condition that the investor keep the original name, thus it is now called the Kilimanjaro Kempinski Hotel.

Earlier in 2004, the government had sold Hotel 77 to Impala Hotels Ltd, but the minister said that there were disagreements on the standard of the hotel to be built.

“The matter was taken to court, but we decided to settle it out of court as the legal procedures were consuming a lot of time,” said Prof Maghembe.

“One of the government conditions was to have a five-star hotel with not less than 300 rooms constructed as soon as possible,” he explained. Currently the hotel has been closed giving way for the major rehabilitation, which according to the minister, will begin soon.

Located on 25 acres landscape, Hotel 77, has a total of 368 bedrooms and 23 suites grouped in 12 clusters and a secluded garden.

Kempinski Hotels, which also owns Kempinski Hotel in Zanzibar, was founded in Germany 110 years ago. It is the oldest luxury hotel collection in the world which now owns and operates an international portfolio of 59 hotels.