Lonrho Hotels awarded 10 year management agreement

TIDMLONR

Lonrho PLC

01 February 2012

Press Release 01.02.12

Lonrho Hotels awarded ten year Management Agreement for the 450-room Grand Hotel Kinshasa in the Democratic Republic of Congo.

Lonrho Hotels, a wholly owned division of Lonrho Plc, is delighted to announce that it has entered into a ten year management agreement for the 450-room Grand Hotel Kinshasa, formerly the InterContinental Hotel, in the capital of Democratic Republic of the Congo.

With panoramic views across the mighty Congo River the Grand Hotel Kinshasa is located in its own grounds at the heart of the diplomatic and commercial district of the Congolese capital.

Lonrho Hotels has been mandated by the Government to upgrade the hotel to its former glory as one of the leading five star hotel and conference venues in Central Africa.

According to international consultants McKinsey, Kinshasa is forecast to grow into Africa's largest city by 2025 and, following the recent elections, it is expected that the DRC will enter a period of strong economic growth.

The Grand Hotel Kinshasa has 450 bedrooms, of which only 238 are currently operational. The management agreement includes a commitment from Government that the hotel will undergo a major refurbishment to re-open the closed 212 additional bedrooms, create extensive new lounge and lobby areas, two new restaurants, and a Grand Club Floor and Lounge. The refurbishment is scheduled to be complete over the next twenty-four months.

The hotel also has a conference capacity for 2,000 delegates and provides outside catering services for major events and meetings. The hotel includes a casino, nightclub, shopping mall, swimming pool and recreational facilities that will be reinstated.

Lonrho also operates the Grand Hotel welcome lounge and restaurant at Kinshasa airport and provides a seamless meet and greet service for guests ensuring they have a safe and rapid transit to the hotel.

This Management Agreement has been signed following Lonrho's successful and highly acclaimed redevelopment to an international five star standard in 2010 of the Grand Karavia in Lubumbashi, the second city of the DRC and the centre of the country's mining industry. The Grand Karavia in Lubumbashi has since added three tourist lodges to its offering and for the first time the Ministry of Tourism recently exhibited at the World Travel Market in London, where the DRC received considerable interest from the international travel trade.

Both business and leisure travellers will benefit from the convenience, reliability and personalised service provided by Lonrho Hotels, whether in Lubumbashi or Kinshasa, during their time in the DRC.

All Lonrho Hotels deliver international standards, superb restaurants and high-speed internet access in a sympathetic friendly environment.

Geoffrey White, Lonrho Plc's CEO stated:

"The 450-room Grand Hotel Kinshasa is one of the finest hotel properties in Africa and we are delighted Lonrho Hotels has been chosen to manage the hotel and the refurbishment of the property. The Hotel is an important asset for the Government and its refurbishment of the hotel reflects the economic progress that is being seen in the Democratic Republic of the Congo."

Ends

Enquiries:

Lonrho Plc +44 (0) 20 7016 5105

David Lenigas

Geoffrey White

Pelham Bell Pottinger +44 (0) 20 7861 3232

Gavin Davis

Charles Goodwin

Charlie Harrison

This information is provided by RNS

The company news service from the London Stock Exchange

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