Spain's Riu invests in Tanzania development

The new all-inclusive hotel is located in the Nungwi Beach area at the far north of Unguja, the main island of the Zanzibar archipelago. Photo credit: Riu Hotels & Resorts

A month after Marriott opened the second Four Points in Tanzania, Spain-based hospitality chain Riu Hotels & Resorts followed suit, acquiring the former Diamonds La Gemma dell' Est on Zanzibar.

This property, the company's second on Zanzibar, will be marketed as part of the Riu Palace brand to complement the existing Riu Palace Zanzibar. The company did not disclose the purchase price or indicate what the hotel's new name would be.

The all-inclusive hotel is located in the Nungwi Beach area at the far north of Unguja, the main island of the Zanzibar archipelago, a little over an hour by car from the airport and the capital city. The property has 149 rooms and a restaurant.


Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Riu also acquired five hectares of land to build a third hotel for a total investment of $56 million. 

According to the company, these projects are meant to "reaffirm" Riu's commitment to the African continent as a tourist destination. Last month, Riu purchased a 25-hectare site in the Pointe Sarène area on Senegal’s west coast to build at least two new hotels with a total of 1,300 guestrooms. The planned investment—part of the chain’s partnership with the Society for the Development and Promotion of the Senegal Coast and Tourist Zone—amounts to €150 million, which includes the purchase of the site and the development of future hotels in the destination. The project is in the planning stage and due to launch in November.

Riu now has seven hotels open across sub-Saharan Africa (five in the Cape Verde archipelago and two in Tanzania) and five in Morocco.

Suggested Articles

As part of moving HITEC from June to October, the association plans to hold three other events in San Antonio at the same time.

The furloughs will affect those at its domestic owned properties as well as its corporate staff.

The company is reducing its corporate workforce 40 percent to approximately 100 full-time-equivalent employees.