Foreign Investor Sells 3 Posh Nairobi Hotels

Photo collage between Fairview Hotel and City Lodge Two Rivers
Photo collage between Fairview Hotel and City Lodge Two Rivers
Courtesy

A foreign investor has received a nod to sell three of his high-end hotels located in Nairobi, including the prestigious Fairview.

The South African investor owns Fairview Hotel, Town Lodge, and City Lodge Two Rivers. The three hotels stand out for their state of art facilities and rich hospitality, attracting hundreds of rich personalities and business moguls.

Fairview Hotel has 127 rooms while City Lodge Hotel at Two Rivers has 171 rooms and Town Lodge Upper Hill 84 rooms.

But in the latest development, the owner has received the green light from the Competition Authority of Kenya (CAK) to sell the properties.

A side view City Lodge located in Two Rivers
A side view City Lodge located in Two Rivers
File

The owner has already received a bid from Actis, which has expressed interest to acquire the three posh hotels at a cost of Ksh1 billion. The new owner is set to fully acquire the properties by April after completion of paperwork.

The South African investor had also revealed plans to sell his Tanzania's City Lodge Hotel in Dar es Salaam for Ksh7.3 million.

The move to sell all the assets was informed by the investor's decision to exit the East African market and venture into other businesses in other regions.

“Due to the delays in the competition commission approvals, the long-stop dates have been extended to May 31. However, the remaining conditions precedent are in the process of execution, and it is anticipated that the sale will complete by the end of April 2022,” the firm stated.

The investor recorded a loss of Ksh2 billion at the end of 2020 from his East African units. The dwindling profits pushed the hotel business to the edge forcing the owner to contemplate leaving the market.

The hotel received approvals from the regional anti-trust body the Comesa Competition Authority in December which noted that it had received information from CAK that the acquisition did not pose competition risks.

The deal to buy the three hotels is on a joint bid between Actis and another private company that is registered in the British Islands.

The exit is just but a pointer to the predicaments facing the hospitality sector. For the last two years, many hotels have exited the market while others have been put up for auction due to the harsh economic conditions in the country.

The iconic Outspan Hotel in Nyeri is among the posh joints that exited the market after the Covid-19 pandemic struck.

Treetops Hotel in Aberdares, Nyeri, where Queen Elizabeth vacationed in 1952 also closed its doors in 2021.

Other clubs and lounges in the country have also closed their doors despite the government setting a side a stimulus package to offset the sector.

Treetops Hotel Located in Aberdare Where Queen Elizabeth Vacationed
Treetops Hotel Located in Aberdare Where Queen Elizabeth Vacationed
ABC News