One of Kasese’s most prominent hospitality assets, Hotel Margherita, is on a countdown to the auctioneer’s hammer after a debt recovery process was initiated by a financial institution against Reco Industries Limited. A public notice issued by Armstrong Limited, a firm of court bailiffs and auctioneers, indicates that the property will be sold by public auction or private treaty within 30 days of the notice unless the outstanding debt, together with accrued interest, fees, and related costs, is fully settled.
The development places a long-standing hotel at risk of changing hands, while also bringing attention to the ongoing recovery process involving assets linked to Reco Industries Limited.
Hotel Margherita and Associated Facilities Listed for Sale
At the centre of the impending sale is Hotel Margherita Limited, a three-star facility situated on approximately 32.3 acres along Kilembe Road, adjacent to Kasese Golf Course. The property is located at the foothills of the Rwenzori Mountains and has over time served both business and leisure travellers visiting the region.
According to the notice, the hotel spans approximately 4,194.4 square metres across three floors and includes 34 guest rooms, of which 13 are master suites. The facility also features two restaurants, a bar, and a conference hall. Additional infrastructure includes a generator house, gatehouse, and a discotheque, with the property offering a 360-degree view of Kasese Town and surrounding areas.
Freehold Land Parcels Included in the Sale
The sale also includes freehold land in Nyakabingo, Kasese District, registered under the Busongora Private Freehold Register. The listed properties comprise Block 9, Plots 4 and 5, measuring approximately 9.548 hectares, as well as Block 9, Plot 3, measuring approximately 3.549 hectares.
These land parcels form part of the overall asset package and are being offered together with the hotel property under the same sale process.
Ownership and Recovery Process
The notice identifies the registered proprietors as Reco Industries Limited and Phil Tibaluka Rwabwogo. The sale is being conducted upon instructions from a financial institution seeking to recover outstanding obligations.
The notice states that the sale will proceed unless the debtor clears all monies owed, including costs and disbursements, before the scheduled sale date. The process allows for both public auction and private treaty, depending on the outcome within the notice period.
Inspection and Sale Conditions Outlined
The auction is scheduled to take place within 30 days from the date of the public notice, with the time of sale indicated as 10:00 AM or shortly thereafter. Viewing of the property is available upon arrangement between 9:30 AM and 4:30 PM.
The terms of sale specify payment by cash or bank draft, and further details may be obtained from the auctioneers upon request.
The outcome of the process will depend on whether the outstanding obligations are settled within the stipulated period or whether the property proceeds to auction as indicated in the notice.
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