The project

The Cape Sierra Hotel

Cape Sierra is viewed as one of the best hotel properties in Freetown. Located in Freetown, in the suburb of Aberdeen, an area that hosts a number of other major hotels, Cape Sierra Hotel enjoys a beach front location and features 66 rooms.  Amenities include a restaurant, two bars, a swimming pool, tennis courts and 50 chalets suitable for longer stays. 

The hotel is owned by the Government.  The original management contract lapsed and a 25-year lease was issued to the National Social Security and Insurance Trust (“NASSIT”) in March 2009.  NASSIT made a once-off payment of approximately $2.4 million for the lease, which the Government used to pay off all staff and other liabilities.  The hotel has been closed since early 2009.

NASSIT has retained IFC, a member of the World Bank Group, as its Lead Transaction Adviser in the selection and engagement of an investor/operator to renovate and operate the Cape Sierra Hotel.

Background

In the 1980s and early 1990s, Sierra Leone had a small, but thriving tourism industry. Then, the conflict of the 1990s restrained the growth of the industry. The tourist activity has since resumed, and although today the country faces widespread unemployment and poverty, confidence is rising along with stability. 

Currently, there is an acute shortage of tourist standard and business hotels in Freetown. There are only two “class 1” hotels (ECOWAS classification), which together offer about 80 rooms.  The occupancy rates at these hotels is around 70%, but the quality is far from being internationally recognized as 4 stars.  This presents an opportunity for an international brand hotel to capture a strong “first mover” advantage by establishing a presence in Freetown and catering to the growing business market.

Recognizing the growing demand for quality hotels, the Government of Sierra Leone has decided that attracting an international brand hotel to Freetown is one of its' top priorities for tourism development and investment promotion. 

The World Bank is currently assisting the Government to implement a tourism development project, aimed at designing a tourism development concept for the Western Peninsula.  Attracting an international brand hotel into Freetown is a key pillar of this project.