LONR Lonrho

RNS Number:0853U
Lonrho PLC
09 May 2008

9 May 2008

                                   LONRHO PLC

                          ("Lonrho" or the "Company")


  LONRHO SIGNS 'BOT' AGREEMENT WITH GOVERNMENT FOR KARAVIA HOTEL IN LUBUMBASHI


Lonrho Plc, ( AIM : LONR ) today announces that, following the announcement in
February this year that it had won the tender process for the redevelopment of
the hotel Karavia, the formal agreement and 'Build, operate, transfer' terms for
redevelopment were signed in Kinshasa, The Democratic Republic of the Congo, on
the 7th May 2008.


The signing ceremony took place following two months of detailed negotiations
with the Government department for reconstruction, Comite de pilotage de la
Reforme des Enterprise Publiques ( COPIREP ). Signing and presenting the
Government at the ceremony which was held at The Minister of Portfolio's office,
were the Minister of Portfolio, Her Excellency Mabunda Lioko and the Minister of
Environment, Conservation and Tourism, His Excellency Jose Endundo Bononge.


Under the terms of the final agreement, Lonrho will lease the property for 15
years, renewable for a further 15 years for a yearly royalty fee of 1% of annual
gross revenue. The hotel is expected to open by the 1st July 2009. The project
is budgeted to cost US$ 20 million, consisting of US$ 15 million refurbishment
and US$ 5 million pre-opening costs and working capital. Under Lonrho
agreements, the DBSA is expected to provide US$ 10 million commercial funding,
and a local bank will provide the working capital facilities.


Lonrho has established a new company to develop the project, 'Grand Karavia
SARL' with a local partner, DeMoerloose Group, on a 50/50 joint venture basis.
Lonrho will provide Board control, and Lonrho Hotels has a management contract
to operate the hotel once it is completed.


The Karavia hotel is currently the only potential large-scale accommodation
facility in Lubumbashi, the burgeoning centre of the copper and cobalt industry
in the DRC. The hotel, originally a Sheraton Hotel, has been derelict for over
ten years and requires complete refurbishment. The hotel market in Lubumbashi is
significantly underserviced with no international standard facilities available
for current demand. Demand for hotel rooms is forecast to soar as US$ 12 billion
of new copper and cobalt projects are to be developed in the region over the
next five years.


David Lenigas, Executive Chairman of Lonrho stated:


"I am delighted that, following the professional and transparent discussions
with COPIREP and the relevant Ministries in Kinshasa, this exciting project is
now ready to start. Work will commence on site in six weeks and the hotel will
be operational within twelve months. I am confident that the Grand Karavia will
become one of the most renowned hotels in Southern Africa."



LONRHO ENQUIRIES

  Lonrho Plc                                                +44 (0)20 7016 5105
  David Lenigas, Executive Chairman                         +44 (0)7881 825 378
  Geoffrey White, Chief Executive Officer                   +44 (0)7717 307 308
  Emma de Borchgrave, Executive Director                    +44 (0)7867 785 177

  Pelham PR
  Charles Vivian                                            +44 (0) 20 7743 6672
                                                            +44 (0) 7977 297903
  James MacFarlane                                          +44 (0) 20 7743 6375
                                                            +44 (0) 7841 672831

  Collins Stewart Europe : NOMAD to Lonrho
  Hugh Field / Simon Alston                                 +44 (0) 20 7523 8350





NOTES TO EDITORS


About LONRHO:


Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa.  The Company's shares are traded on the London AIM
stock exchange (LONR). Lonrho is strategically focused on the development of
business opportunities in infrastructure, transportation, support services,
hotels and natural resources. The Company has over 19,000 shareholders and
substantial institutional backing to support its mandate to build a profitable
business that plays a fundamental role in the development of the African
economy.



Since 2006, the Company has invested in or acquired control of:


Hotel Cardoso - www.hotelcardoso.co.mz  (retained)

Lonrho Mining - www.lonrhomining.com

Luba Freeport - www.lubafreeport.com

Fly540 - www.fly540.com

Swissta Holdings - www.swissta.com

SA Independent Liner Services - www.saliners.com

Bytes and Pieces www.bytespieces.com

Kwikbuild - www.e-kwikbuild.co.za

LonZim - www.lonzim.co.uk












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