The South African based group of hotels named the City Lodge Group is intending to establish a 150 room facility in Kampala the capital of Uganda and a famous arrival point for the travelers on Safari in Uganda.

The Executive Director of the City Lodge Hotel Group Clifford Ross disclosed the move to the South African Business Report daily noting that the organization intends to establish in Uganda by the end of the 2017 though it is still facing issues with the costs of establishment including construction.

The Group’s International Business Development Manager Henri Joubert also acknowledged the project move.

The feasibility study is undergoing and the efforts to reduce the costs are ongoing. The management notes that the costs are considerably high and thus the project may not be feasible unless the possibilities for cost reduction are identified.

The issues like high land and building costs still remain a blockade to hotel establishment in Kampala. This can be considered as a disadvantage to the city lodge hotel clientele including those who would be on Uganda safari and would find it comfortable to keep in their favorite chain.

The City Lodge Hotel Group is already operating in Nairobi where two establishments are being run including the 84-room Upper Hill Nairobi Hotel and the 120-room Fairview Hotel Nairobi positioned on two-hectares of prime land.

The expansion to Uganda is being motivated by the growing economies of the East African Community member states, the increasing middle class, the favorable demographics, Oil discovery and increase in tourist arrivals taking Uganda tours.

The industry leaders in the country are optimistic about the group’s establishment in Uganda, expect a support hand from the Uganda Investment Authority and would be keen on the hotel standards among other factors. Uganda remains a good investment place for such hospitality projects considering the fact that the country is still facing the bed deficit.

The group also remains optimistic over its plan to set up five (5) new Hotels in the destinations of Uganda, Kenya, Mozambique, Tanzania and Namibia before the end of next year. If the City group establishes in Kampala, it will join a group of other International chains operating in Uganda including the Sheraton, Serena and Hilton.