Court brokers have closed Western Meridian Hotel owned by a top tycoon Deo Owobusingye Musiba.
The hotel is located in the western Uganda district of Bushenyi and is estimated to be worth over Shs 5bn.
The hotel was closed Thursday morning after Musiba failed to pay a bank loan from Uganda Development Bank.
Guests and workers were ordered out and the hotel put under lock and key by armed bailiffs.
According to Kamugasha Court Bailiff Company, the brokers who closed the five-storied hotel, Musiba’s debt was Shs 2.1bn but the government owned Uganda Development Bank extended a debt relief of Shs 800m to the tycoon.
The Bailiffs also revealed that they had given the tycoon a six-month ultimatum, and another three-month extension but he had failed to pay.
