Tripoli Fair launch tender
for $15 million 5-star hotel

32 year term including 2 years for renovation

The Rachid Karami International Fair (RKIF) in Tripoli has launched a public tender to attract a private investor to redevelop, equip and operate a five-star hotel on the Fair’s premises, in what its management describes as a key step towards transforming the site into a major destination for exhibitions, conferences, business and tourism.

Hani Chaarani, RKIF’s Chairman of the Board, said at the launch that the investor would have three principal obligations: Rehabilitating the hotel, paying the Fair an agreed percentage of sales, and contracting an international operator.

About the tender
The tender was published by the Public Procurement Agency (PPA). RKIF will be the contracting public institution. The Fair has scheduled a site visit for prospective investors on October 15. The deadline for questions concerning the tender procedure is December 31, while the final deadline for submitting bids is January 14, 2027 at 10:30 am. The offers will then be opened and evaluated under the public procurement process.

According to PPA, the investment is estimated at $10 million to $20 million, with the possibility of a lower cost if exemptions from import duties are obtained. The tender provides for a two-year development and rehabilitation period followed by a 30-year operating and investment period. The project is therefore structured around a total 32-year concession.

The booklet for terms of reference is priced at $3,000. The bid bond is set at $5,000 and the performance guarantee at ten percent of the estimated minimum investment. The offer must remain valid for 60 days from the final submission date, while the bid guarantee must remain valid for 88 days.

The property
The proposed hotel is planned to have at least 76 rooms, with potential to go beyond 100. It is also envisaged as a much broader hospitality and business facility, with several restaurants including a rooftop venue, a conference and banqueting hall capable of accommodating up to 1,000 guests, a sports center and destination spa, indoor and outdoor swimming pools, tennis courts and parking for more than 400 vehicles. The project involves architectural design, renovation, construction and furnishing, management and investment of a five-star hotel together with adjoining areas covering at least 22,000 square meters (m2), expandable to 27,000 m2.

Property history
The proposed hotel occupies an unusual position within Lebanon’s tourism and business infrastructure. RKIF was designed by world renowned Brazilian architect Oscar Niemeyer beginning in 1962 and is one of the most important examples of modernist architecture in the Middle East. The complex was inscribed on the UNESCO World Heritage List in 2023 and was simultaneously placed on the List of World Heritage in Danger because of its conservation condition and other threats. The hotel project will consequently have to operate within the architectural and conservation framework applicable to the site.

The existing property was created by converting one of Niemeyer’s buildings into a hotel. It previously operated as the four-star Quality Inn Tripoli. The former hotel had 112 rooms. It was operated by Services and Development under a Furnish, Operate and Transfer agreement signed for 16 years beginning in 2001. The agreement expired in 2017. A dispute subsequently developed between the Fair and the former operator. The Fair said the company had accumulated approximately $3.3 million in unpaid dues and sought to recover control of the property. The former operator disputed the Fair’s position and argued that the Fair had itself failed to meet contractual obligations, including maintenance and commitments relating to international exhibitions.

New business model
The new project consequently represents a substantial change from the former operating model. Rather than simply leasing an existing four-star hotel to an operator, the new tender calls for the rehabilitation and redevelopment of the property as a five-star hotel, with an international hotel operator and a much longer investment period.

The financial structure will be one of the most important elements for potential investors. The investor will pay it a percentage of sales.

The proposed hotel would also be expected to benefit from events held within the Fair itself. The project presentation envisages conference and banquet facilities for as many as 1,000 people, making the hotel potentially relevant not only to overnight visitors but also to conferences, corporate events, exhibitions and other activities taking place on the site.

The project is estimate to create more than 100 jobs.

The project has already received assistance from private-sector consultants. D.J. Jones and Hodema provided pro-bono consulting studies.