Golden Tulip Now Lancaster Hotel; Not Sold But leased For 12 Years – Management

Golden Tulip Now Lancaster Hotel; Not Sold But leased For 12 Years - Management

Now Lancaster Hotel executives have denied reports that their Accra and Kumasi properties have been sold.

According to Ghana Libyan-Arab Holding Company (GLAHCO), the hotels were not sold but leased for a period of 12 years.

They explained in a statement on Monday that the Golden Tulip brand was managed by the Louvre Hotels Group (LHG) of France.

However, the Group indicated that its agreement would not be renewed at the end of 2021, citing recent changes in regulatory guidelines in their home country.

Ghana Libyan-Arab Holding Company (GLAHCO) has taken note of media reports alleging that a Lebanese company has purchased the entire franchise of the Golden Tulip Hotels in Accra and Kumasi, which are owned by a joint venture between Ghana and Libya.

GLAHCO wishes to inform the general public that the Golden Tulip Hotels were not sold, and thus the aforementioned allegation/assertion is false.

To begin with, Golden Tulip Hotels is a joint venture between the Libyan Government and the Ghana Government, with the Ghana Government holding a 40% minority stake and the Libyan Government holding a 60% majority stake.

The Golden Tulip brand was managed by the Louvre Hotels Group (LHG) of France under a Management Contract. 

The company indicated that the agreement would not be renewed at the end of December 2021, citing recent changes in regulatory guidelines in their country of residence.

As part of their mandate to make decisions on the company’s strategic direction, the Board of Directors began the process of evaluating options for replacing the Management contract with more improved terms of engagement that offer a better return.

As part of their mandate to make decisions on the company’s strategic direction, the Board of Directors began the process of evaluating options for replacing the Management contract with more improved terms of engagement that offer a better return on investment in the Hotels and thus increase value to its shareholders.

The leasing option was chosen during this review process, and companies were invited to submit proposals for leasing the Golden Tulip Hotels in accordance with general procurement procedures. Four companies from four different countries, Ghana, Tunisia, Nigeria, and Lebanon, expressed interest and submitted proposals for the Board’s consideration.

After months of deliberation, the Board chose Achour Holdings, operators of the Grand Lancaster hotel chain, and secured the signing of a lease agreement with the company on May 18, 2022, subject to the fulfillment of pre-operational conditions.

The lease agreement’s terms included, but were not limited to, the following;

▪ A primary lease term of 12 years AND NOT A SALE as alleged by the said publication.

▪ The effective date for the commencement of lease operations of July 1. 2022.

▪ The company was also required to construct a modern conference facility of 1,000 square meters for Golden Tulip Accra.

It must be stated that the hotel’s state-of-the-art conference facility was one key investment required for the hotel to improve its revenues and compete favorably in a market that has seen the entry of very reputable brands over the years.

Following the conclusion and signing of the lease agreement, the Golden Tulip Hotels were rebranded as Lancaster Hotels, with effect from the lease start date. As a result, the hotels’ names were changed to Lancaster Accra and Lancaster Kumasi City.

Achour Holdings operates 5-star hotels in several countries and plans to elevate Lancaster Hotels in Accra and Kumasi (formerly Golden Tulip) to that level.

In the interest of Ghana and its citizens, GLAHCO ensured that every employee of Lancaster Hotel is protected and will not lose their jobs and livelihood as part of the agreement with Achour Holdings.

As a result, GLAHCO urges the general public to disregard allegations of the sale of government shares in Lancaster Hotels.

GLAHCO reiterates its unwavering commitment to managing Lancaster Hotels’ affairs in a transparent and prudent manner.

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