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The Pearl of Africa Hotel in Kampala City is under the hammer.

The hotel that belongs to businessman Muhammed Hamid was put up for sale by public auction on Monday.

Hamid-owned Aya Group of companies launched the landmark hotel in Kampala about six years ago, but the business has since struggled with a litany of court cases over loans owed by the businessman.

The hotel reportedly cost more than $300m to build. 

The iconic landmark hotel situated on Nakasero features 296 rooms, 42 suites, two tennis courts, two squash courts, two basketball courts, two bars, 6 swimming pools, a 740-square meter ballroom, 9 meeting rooms, 2 boardrooms, a business hub, a wellness centre, and Spa, and breathtaking panoramic views.

The hotel spans 32,000 square meters and comprises 23 floors, 26 rooms, 37 suites, two restaurants, three bars, and nine meeting rooms.

However, in a notice that ran in the New Vision newspaper on Monday, the auctioneer, Armstrong Limited, noted that the hotel would be sold unless the judgment debtor (Hamid) pays the entire outstanding decretal sum (amount withheld), including interest and other fees and cost before the fall of the hammer at the auction.

“Upon instruction from the High Court of Uganda (Commercial Division) in Execution Misc. Application No. 275 of 2023 (arising) from arbitration cause No. 12 of 2021 and the High Court Misc. Cause No. 58 of 2021, Industrial Development Corporation of South Africa Ltd (judgment creditor) vs AYA Investments (U) Limited (Judgment Debtor), and MS MMAKs Advocates and ENSafrica Advocates, Counsel for the judgment creditor, we shall proceed to sell the property… together will all developments thereupon by public auction pursuant to a warrant of attachment and sale issued by the High Court of Uganda (commercial division),” the notice said.

In 2021, the Industrial Development Corporation of South Africa Ltd attempted to seize the hotel to recover a debt of $118m, but the court barred it.

The money is part of the financing contract signed between AYA and the South African entity to finance the construction of the hotel in 2007 according to reports.