Kokeb Enterprises Ltd · Investment Opportunity

Protea Hotel by Marriott Solwezi

A proposed 121-key hotel to be operated under Marriott’s Protea Hotels brand — the first internationally branded hotel in Zambia’s fastest-growing mining city.

Sub X of Farm 2945 · Solwezi · North-Western Province · Zambia

US$11.0mTotal project cost
17.7%10-yr project IRR
21.6%Equity IRR
Sep 2028Target opening
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Private & confidential — shared with selected parties. Not an offer of securities.

121Keys
10,000 m²Gross floor area
US$91kCost per key
2.6xStabilised DSCR
4.9x10-yr equity multiple
The Opportunity

Two world-scale copper mines. Zero branded hotels.

Solwezi anchors Zambia’s “new Copperbelt” — home to First Quantum’s Kansanshi mine and Barrick’s Lumwana mine, both undergoing multi-billion-dollar expansions that extend mine life by decades. The mining economy generates deep, year-round corporate demand, yet the town has no internationally branded full-service hotel.

2

World-scale mines

Kansanshi (FQM, ~10 km) and Lumwana (Barrick) — expansions committed, decades of mine life.

$125–270

Current nightly rates

Commanded by unbranded local hotels with limited conferencing and no loyalty programmes.

0

Branded competitors

Mining houses mandate branded hotels where available. This will be the default corporate choice from day one.

The Project

Designed for the market it serves

Full concept designs complete (PNA Architects, Lusaka): a ground floor of public areas and conferencing, four accommodation floors, and a fifth floor combining a rooftop SkyBar with two penthouse suites — on a reserved 1.76 ha site.

121 rooms & suites

From 26 m² standards to 53 m² long-stay Super Deluxe rooms, junior suites, suites and two 124 m² penthouses.

Largest conferencing in the province

Three divisible conference rooms (406 m² combined), break-out room, boardrooms and a 499 m² events garden.

Three F&B outlets

All-day restaurant, specialty restaurant and a signature rooftop SkyBar with its own kitchen.

Wellness

Gym, spa and outdoor pool serving guests, conferences and the local corporate community.

Commercial income

89 m² bank unit (interest already expressed) plus 293 m² of co-working space — defensive lease income.

Resilient by design

318 m² rooftop solar array, full back-of-house, laundry, cold store and parking for 50–100 vehicles.

Brand & Operations

Marriott-backed operating platform

“We would be very interested in managing this hotel on your behalf if it meets the required standards… the purpose of this letter is to give comfort to your promoters and financiers of our interest.”

— S.M. O’Donnell, Chairman, Protea Hotels Zambia Ltd · 2 June 2025

  • Written expression of interest to manage the hotel, with willingness to recommend a Protea franchise by Marriott (subject to due diligence and Fire & Life Safety standards)
  • Marriott Bonvoy loyalty, global distribution and mining-house corporate accounts from opening
  • Protea leads the Zambian market — Lusaka, Ndola, Chingola, Livingstone
  • Base case modelled on customary terms: 3% base fee + 8% of GOP
Financial Projections

Diversified revenues, 30% EBITDA margins

10-year, USALI-format model in US dollars (net of 16% VAT). Occupancy ramps conservatively from 45% to a stabilised 65% by Year 4; blended rate ~US$149 at opening, growing 3% p.a.

4.7
1.3
Yr 1
2028/29
5.9
1.6
Yr 2
7.4
1.9
Yr 4
stabilised
8.8
2.3
Yr 10
Total revenue (US$m)EBITDA after FF&E reserve (US$m)
Returns — 10-year hold, exit at 9.5% cap
Project IRR (unlevered)17.7%
Equity IRR (indicative 40/60)21.6%
NPV @ 12% discount rateUS$4.8m
Stabilised yield on cost17.5%
Stabilised DSCR2.6x
Development budget — US$11.0m
Construction & external worksUS$6.4m
Fees & contingencyUS$1.2m
FF&E, OS&E & pre-openingUS$2.1m
Land, working capital & interestUS$1.4m
Cost per keyUS$91,000

Budget is a promoter estimate; independent QS confirmation is a condition of financial close. Regional benchmark for branded midscale hotels: ~US$393,000 per key (AECOM Africa Cost Guide 2025/26, Lusaka).

The Ask

US$11.0 million — structure open to discussion

Kokeb Enterprises welcomes proposals for pure equity, blended debt-equity packages, or full-funding solutions from a single institution or consortium.

US$4.4m

Indicative senior debt (40%)

USD-denominated, ~9% pricing, 12-year tenor, 18-month principal grace through the ramp-up.

US$6.6m

Equity (60%)

Promoter contribution (including land) alongside incoming investors.

At this deliberately conservative gearing, stabilised debt service cover of 2.6x sits far above the 1.3x threshold regional lenders typically require — leaving substantial headroom for higher leverage where investors prefer to enhance equity returns.

Execution

Route to opening

H2 2026Term sheets, due diligence, QS cost confirmation
H1 2027Marriott/Protea agreements; approvals; financial close
2027–28Construction (~18 months)
H1 2028Recruitment, pre-opening, brand onboarding
Sep 2028Opening — ramp to stabilisation by 2031

Pre-development already funded by the promoter: land reserved, full concept design complete, operator interest secured.

Pipeline

Beyond the hotel: a 10 ha master-planned development

The hotel anchors Kokeb’s wider Bumuntu Lifestyle landholding. The remaining 8.24 ha is earmarked for an upmarket gated residential community — excluded from this raise, with hotel investors offered first engagement on the next phase.