Hotel Lazinos to Be Auctioned Over Piled Debts
Hotel Lazinos in Nairobi West is up for sale by Graham Investments, following a debt owed to a local bank.
According to Business Daily, the auctioneer did not disclose the bank seeking to sell the property or the amount of debt owed.
On the March 5, 2019 a public auction of the multi-storey building will be held in Westlands.
The auctioneer estimates the rental income to be Ksh3.5 million a month.
“It is debt. We are not allowed to disclose the bank involved,” an official from Graham investments stated when asked by a reporter.
This is the second time the facility is being put up for auction after it went under the hammer in 2016.
This comes even as reports claim the Intercontinental hotel is suffering similar financial constraints and has allegedly registered zero profits in the last 10 years.
The report cited Ksh113.7 million as the operating loss in the last financial year.
“We wish to bring to your attention the following facts. The company is facing financial challenges to the extent it cannot meet obligations as they fall due,” read part of a letter written by the Chief Executive of Tourism Finance Corporation, Jonah Orumoi.
Latest reports further stated the hotels' current liabilities exceeded the current income by Ksh511 million.
The Tourism Finance Corporation, who are part of the creditors in the hotel, has threatened to send auctioneers in a bid to recover their money.
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