NSSF Managing Director, Patrick AyotaBy Prisca WanyenyaThe National Social Security Fund (NSSF) has defended its US$50 million (UGX180Bn) investment into Marriott Hotel, describing it as one of the best deals the Fund has from a real estate perspective and the decision was informed by the lack of very decent hotels that can accommodate big groups of tourists in Uganda.The defence was fronted by Patrick Ayota, Managing Director, National Social Security Fund (NSSF), while appearing before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), during a 4th November 2026 meeting held to consider the Fund’s December 2025 Auditor General’s report.“The study showed that a lot of the people coming to the country were spending eight to four days in Uganda, compared to five to seven in Rwanda or Kenya, and the question is, why are they spending less days in Uganda than in neighbouring countries? And one of the things Uganda has lacked, I say lacks, is actually very decent hotels that can accommodate big groups of tourists. So, it is very strategic in terms of national purpose that we actually invest in these hotels as they come,” Ayota said.His remarks were in response to a request made by Muwada Nkunyingi, Chairperson COSASE, who asked NSSF to respond to questions raised on the Fund’s investment in Marriott Hotel after rumours swirled in public that the US$50 million (about UGX180Bn at time of investment), was capable of constructing a new hotel with 100% NSSF ownership, instead of the 30% shares the Fund got after its multi-billion investment.“You say you invested US$50 million (for 30% shares) and you say this is approximately UGX180Bn, then I heard someone saying in the media that these people paid more money than the cost of the hotel. So, it is up to you to tell us that your valuation, that you value this hotel above this. Someone was saying that this money can build that hotel, and you own it 100%. However, it is now up to you to justify that this investment, according to what they are saying, that possibly this US$50 million can be built the whole facility,” Muwada said.Ayota defended the Marriott Hotels investment describing it as one of the best deals the Fund has made in its real estate portfolio and upon completion, the Hotel will be valued at around US$200 million, further revealing that the investment wasn’t a one-man decision, but rather, there were layers such a decision goes through, and this involves studying the viability of the project with a focus on expected cash flows coming from that hotel, the markets the hotel wants, how many people should be staying in that hotel.“It is one of the best deals we have done from a real estate perspective. The market valuation of that hotel is US$200 million. We bought 30% of that Marriott and paid US$50 Million, so even day one, the members of the fund are ahead because we began assessing Marriott two years ago, it took us two years. At that time, we were about 90% done when we began talking with Marriott. At 100% completion, the valuation was US$200 million. From up front, our 30%, which we paid for US$50 million, is actually a good deal for members of the fund,” Ayota said.MPs Question ValuationHowever, Martin Muzaale (Buzaaya County) wondered if NSSF conducted a market survey before investing in Marriott Hotel, and how Marriott Hotel could be valued higher than Sheraton Hotel that is located in the heart of Kampala, and is sitting on over 10 acres of land.“But Sheraton Hotel is seated in the centre of this town. It is actually seated on a land size of 10.56 acres, with an historical name, it defeats my understanding whether there was a market survey before going into this business. Because I don’t know whether my Managing Director and the team, looking at the hotels around, which we know, with famous names like Sheraton, Serena, whether they can make some returns. You know, if you think of business, you must do some research and see whether the investment you are going to make is below US$50 million,” Muzaale said.Ayota informed the Committee that NSSF has 20% shares in Serena Hotels across the East African Region and asked Muzaale to share the source of information about the cost of Sheraton Hotel to enable the Fund make the market comparisons.“We don’t have that information at all. If you look at the comparison you talk about, NSSF is invested in Serena, so we are investing in Serena as is, that is basically our second construction. So, when a member can share some of that information, because it doesn’t stop us from re-accessing it now, but there is a lot of speculation about a share of things sold that we shouldn’t get our hands on,” Ayota said.Muzaale fired back questioning how NSSF spent UGX8Bn to purchase 20% shares in Serena, yet the UGX180Bn in Marriott Hotel only earned the Fund 30% shares.“It is now coming sweet now. In the end of now, it is going to be sweet. Now that we have 20%, as he says, in Serena Hotel, can we know how much we invested and the returns we have annually? Take us to your financial statements, because it will speak for itself,” Muzaale said.The Elgon County MP, Gerald Nangoli, weighed into the debate asking, “Who valued the property? Were they of course private and government certified by the government valuer? Was the valuation based on future projected income or actual replacement? What happens in the case of a occupancy of 60% valuation as per the valuation base? To get to 60%, don’t you think the worker’s money is at risk?”Additionally, Julius Nakiyi (Budadiri East) also noted, “The Managing Director talked about guaranteed income, because you signed an agreement with the operator and he has already assured you on the revenue streams, what is the payback period? When do you think you can recover, after how many years to recover that investment?”The post NSSF Defends Shs180bn Marriott Deal: “One of Our Best Investments” Despite Owning Only 30% appeared first on Business Focus.