The University of Rwanda has announced plans to build a 5-star hotel in Huye City, southern Rwanda, to address the accommodation gap in the area and generate additional revenue. The hotel, which will be constructed on university land in the Itaba sector, will offer a range of services, including three- to five-star accommodations, conference facilities, and long-term accommodation for researchers and international visitors.
The project aims to achieve two main objectives: to generate new revenue streams for the university and to address the shortage of high-end hotels in Huye City. Currently, Huye City has many hotels, but none of them are 5-star rated. The university's vice chancellor, Prof. Didas Kayihura Muganga, stated that the hotel will help to address the accommodation needs of visitors to the city, including researchers, lecturers, and tourists.
According to the Rwanda Statistical Yearbook 2025, Huye City had 38 accommodation establishments with a total of 938 rooms in 2024. However, the city lacks a 5-star hotel, and the university's project aims to fill this gap. The university's hotel will not compete with existing hotels in the area but will instead complement them by offering high-end services to visitors.
The hotel project is part of the University of Rwanda's broader strategy to diversify its revenue streams and increase its self-sustainability. The university aims to generate 63% of its budget from its own revenue streams within the next four years. The project is being implemented through the university's holding company, UR Holding, and its engineering subsidiary, UR Engineering.
UR Holding has already expanded its operations to include healthcare services, agriculture, and hospitality, among others. The company has also partnered with private investors to develop student accommodation and other facilities. Prof. Kayihura stated that the university is open to partnerships with private investors to develop its land and facilities.
The governor of the Southern Province, Alice Kayitesi, has praised the university's project, saying it will enhance Huye City's capacity to host conferences and other events. The governor noted that the hotel will increase the city's accommodation capacity and attract more investors to the area.
The project is also expected to contribute to the growth of Huye City as a major urban center in Rwanda. The city is home to four universities with over 18,000 students, and the university's hotel project is expected to create new opportunities for investment and economic growth in the area.
Key points
- The University of Rwanda's 5-star hotel project in Huye City aims to address the accommodation gap and generate additional revenue for the university.
- The project is part of the university's strategy to diversify its revenue streams and increase its self-sustainability.
- The hotel is expected to enhance Huye City's capacity to host conferences and other events, contributing to the city's economic growth.
